Since 2020, a series of free trade agreements and smart sourcing strategies have helped Thailand's ice cream exports grow by more than 10% annually.

Thai entrepreneur Danuphon Umnuayprechakul says that to stand out among the sea of sweet treats filling supermarket freezers—brands like Häagen-Dazs and Ben & Jerry's—an ice cream label needs more than just great flavor. It needs a compelling story.

His company, Lamoon Group, is a boutique Thai manufacturer that has carved out a niche in an industry dominated by global giants. Its unique approach pairs each ice cream flavor with the farmers who produce the ingredients, offering increasingly discerning and affluent consumers an engaging narrative behind every bite.

"It gives every flavor a new meaning… and our customers love it," Danuphon said. "Now, when people enjoy our Marian plum or coconut ice cream, they're also savoring the story of the farmers behind it."

A Rising Ice Cream Powerhouse

Thailand is now the largest exporter of ice cream in Asia, ranking fourth globally.

This growth is partly fueled by acquisitions from Chinese conglomerates—such as the Yili Group—which have established cost-efficient production hubs in Thailand. These hubs take advantage of the country's advanced cold-chain systems and international shipping networks to reach distant markets.

A sweeping collection of free trade agreements has also helped Thai ice cream enter new markets with reduced or zero tariffs.

Over the years, Lamoon Group has grown from a small shop into a chain with multiple branches across Thailand and now operates an export-capable facility.

The company produces about one ton of ice cream and sorbet per day, ranging from premium flavors like matcha, coconut milk, and butterfly pea, to plant-based and budget-friendly lines for independent brands.

"Thailand has always been the kitchen of the world. Our supply chains are efficient, sourcing is mature, and our cost advantages are unmatched," Danuphon explained.

"As a new exporter, I first tried working with countries that have free trade agreements with Thailand, hoping the FTAs would help," he added. "Thai ingredients deserve a global stage. We are currently in Singapore and in talks with potential partners in Australia, Dubai, and Vietnam."

Capturing Global Customers

Existing trade deals with Japan, Australia, and India have opened doors for Thailand's small and medium-sized businesses seeking new markets in a shifting global trade environment—especially as U.S. President Donald Trump's tariff policies disrupt long-standing trade patterns.

At last month's APEC Summit, Trump met with Chinese President Xi Jinping, seemingly easing some of the harshest trade restrictions between the world's two largest economies. Still, Southeast Asian nations are doubling down on diversifying their trade partnerships.

Thailand's ice cream market is booming, driven by consumers with rising disposable incomes eager for more diverse and luxurious desserts. Between 2020 and 2024, Thai ice cream exports averaged $106 million per year, with annual growth exceeding 10%.

In just the first two months of this year, exports hit $22 million—a surge the government attributes in part to 14 free trade agreements with 18 countries.

"Seventeen of those partners have removed all tariffs, giving Thai ice cream a competitive edge," Thailand's Government Public Relations Department said in a statement. As of early 2025, "exports to these markets account for 87% of total ice cream shipments."

Even Japan—where some tariffs still apply—has increased its imports of Thai ice cream nearly tenfold.

ASEAN, an 11-member bloc, says its free trade agreements provide exporters with a lifeline against U.S. tariff barriers. While reciprocal agreements lower American tariffs, rising costs and volatile exchange rates continue to pressure Southeast Asian SMEs.

Vietnam, for example, aims to achieve a record 10% economic growth rate next year, using foreign investment and a network of FTAs—many negotiated through ASEAN—to counter tariff-related challenges.

A $56 Billion Global Market

Consumer goods sectors such as ice cream still have enormous growth potential. According to the International Ice Cream Association, Asia now accounts for about 37% of the global market, and the industry's total value could exceed $56 billion in the next five years, with China and India leading global consumption.

Rising disposable incomes mean more people can enjoy non-essential treats—and are willing to pay premium prices for them.

"Urbanization and the rise of dual-income households have made ice cream a daily indulgence," the association said. Growth is driven by "rising demand for premium and artisanal products… the expanding market for health-conscious and dairy-free alternatives, and interest in unique, innovative flavors."

Asia's emerging middle class is willing to pay more for ice cream cones and tubs, and the growing range of low-fat, low-sugar, vegan, and non-dairy options reflects broader lifestyle changes.

Flavors like matcha, red bean, and tropical fruit blends combine Western and Asian tastes, symbolizing a new era of culinary cross-fusion.

For Lamoon's founder, the evolution of the industry is both a challenge and an inspiration.

"Making ice cream is so much fun," Danuphon said. "It's both a science and an art. It's not just a dessert; it's a form of creativity that can be preserved for a long time."