FTI urges support for Thai SMEs to boost global herbal medicine exports

The Federation of Thai Industries (FTI) urged the government to strengthen its support for small and medium-sized enterprises (SMEs) involved in herbal development and production. The move is aimed at enhancing their global competitiveness and propelling Thailand into the top 10 herbal medicine exporters worldwide.

SMEs in the sector are currently struggling with insufficient funds for research and development, and for enhancing production and export capabilities, according to the federation. Sittichai Daengprasert, chairman of the FTI’s Herbal Industry Club, pointed out that the registration process for herb-derived medicines is time-consuming, making it hard for these smaller businesses to compete with larger, global herbal medicine companies, reported Bangkok Post.

Sittichai further noted that most SMEs lack the necessary knowledge to market their products and develop sales channels overseas.

“If it’s possible, authorities should take herbal medicine companies with them when they organise trade shows overseas.”

For Thailand to rank among the world’s top 10 herbal medicine exporters, these challenges must be addressed, the FTI emphasised. The federation also revealed that Thailand, currently leading in herbal medicine exports within ASEAN, aims to become the top three in Asia within the next five years.

According to the Herbal Industry Club, the value of Thailand’s herbal market is expected to hit 100 billion baht by 2030. The country presently ranks fourth in Asia for herbal product consumption, following China, Japan and South Korea, and seventh globally.

The club also intends to promote the use of local herbs, particularly turmeric, black galangal and fa thalai jone (andrographis paniculata), with the hope of making them national product champions, as per Meatha Simavara, the club’s former chairman.

“Since the pandemic, these herbs have become more popular. People have more knowledge of their properties.” “Many people use herbs because they don’t want to take commercial medicines.”

Simavara added that while Thailand has the potential to capture a larger share of the black galangal market overseas, competing with India and China in the turmeric and fa thalai jone markets presents a more formidable challenge.

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