Chinese brands are rapidly expanding in Thailand, with increased capital, tax incentives, and scalability, putting more pressure on local F&B businesses.
In the past decade, Chinese food and beverage (F&B) brands have rapidly expanded across Southeast Asia and reshaped the industry. In Thailand, their growing presence has introduced greater diversity and competitive pricing. At the same time, however, this expansion has intensified pressures on local small and medium-sized enterprises (SMEs) and raised concerns about market fairness, regulatory oversight, and the long-term sustainability of the country’s F&B sector.
Since the end of the Second World War, Thailand’s F&B landscape has been shaped by successive waves of foreign brands. American fast-food chains such as KFC and McDonald’s established early footholds in the 1980s. These were followed by the proliferation of Japanese restaurants, ranging from Thai-operated businesses to established Japanese chains such as Hachiban Ramen and Ootoya. While each wave brought new tastes and business models, they have also pushed local operators to adapt or risk obsolescence.
In recent years, China has emerged as a significant new player in Southeast Asia’s F&B landscape. Driven by its “go global” policy aimed at easing domestic market saturation, Chinese F&B companies have rapidly expanded overseas, with Southeast Asia as a key destination. Haidilao’s first overseas outlet in Singapore in 2012 signalled the beginning of this trend. The successful launch of the Chinese hot pot chain in Thailand in 2018 marked a turning point that paved the way for other Chinese brands.
Today, the Thai market features a growing roster of Chinese franchises, including Haidilao, Chagee and Mixue, offering everything from mala hotpot to affordable ice cream and bubble tea in urban areas. New Chinese immigrants now operate many Chinese restaurants in Thailand.
In Bangkok, districts such as Huai Khwang have seen a marked increase in Chinese presence, with newcomers acquiring land, investing in real estate, and running restaurants. Table 1 illustrates the increase of Chinese investment in Thailand’s restaurant industry, rising from 0.5 per cent in 2022 to 58 per cent by 2024.
Table 1: Chinese Investment in Thailand’s F&B Sector (2022–2024)
A key factor behind the success of Chinese F&B brands in Thailand is their ability to capitalise on the country’s favourable trade policies by importing essential inputs, such as ingredients, packaging materials, and equipment, at significantly reduced costs. Under Thailand’s import tax regime, goods valued under 1,500 baht (US$40) are exempt from duties and value-added tax. In mid-2024, the Thai government introduced a 7 per cent VAT on these low-value imports starting in mid-2024 to level the playing field. But the exemption from customs duties remains in place. This policy environment enables Chinese F&B operators to import their inputs at a low cost and maintain competitive operating costs, allowing them to offer highly competitive prices to Thai consumers.
Beyond trade policy advantages, the success of Chinese F&B brands in Thailand also stems from their financial strength, operational expertise, and innovative marketing. A prime example is the swift rise of Mixue, a Chinese ice cream and tea brand that opened around 480 branches between 2022 and February 2025. Its success is largely attributed to low franchise set-up costs and social media-driven marketing strategies, such as its widely recognisable “Snow King” mascot, which resonates strongly with younger, digitally connected consumers.
…the Thai government hesitates to impose trade barriers, partly because it tries to maintain strong bilateral relations with China, a vital trade and tourism partner. This situation leaves officials caught between supporting open markets and protecting domestic players.
However, these competitive advantages have placed immense strain on domestic operators, particularly SMEs. Supak Muennikorn, founder of Thailand’s Food Franchise Institute, observes that local entrepreneurs are grappling with a confluence of rising costs — for ingredients, labour, and rent — while also facing mounting pressure to upgrade service standards and adopt modern management practices. Many Thai-run establishments lack the capital or institutional support needed to compete effectively. This disparity has sparked growing concerns, as running a restaurant remains one of the most accessible entrepreneurial paths for Thais. With limited financial resources and short operating runways, family-run businesses are increasingly at risk of closure.
It remains debatable whether Chinese F&B brands can fully match Thai cuisine’s rich diversity, quality ingredients and deep cultural heritage. But Chinese brands have gained notable popularity, especially among younger and urban customers drawn by affordability, convenience and competitive pricing. They also have an abundance of capital, investment dollars, tax breaks, and scalability. These factors have helped them expand their market share, as local restaurants’ share of the pie gets smaller (Table 2).
Table 2: Chinese F&B vs Local Eateries in Thailand (2020–2024)
In response, the private sector has called for stricter quality controls on imports to ensure public safety while levelling the playing field for local businesses, which often face tighter regulations. Moreover, Thai policymakers should also consider revising franchise regulations and implementing antidumping measures to curb market distortions.
However, the Thai government hesitates to impose trade barriers, partly because it tries to maintain strong bilateral relations with China, a vital trade and tourism partner. This situation leaves officials caught between supporting open markets and protecting domestic players.
The core issue is determining the appropriate level of government intervention to balance competition between Chinese and Thai businesses, or whether such competition ultimately benefits consumers. The future of Thailand’s F&B industry depends on striking a balance between openness to foreign investment and the protection of domestic enterprises, ensuring the sector’s long-term health, competitiveness, and cultural vibrancy.
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