Noodles of growth: Mama set to stir up premium market
Thai President Foods Plc, the company behind Mama instant noodles, anticipates significant growth in the instant noodle market this year, with the premium segment potentially outperforming the overall market.
Pun Paniangvait, manager of the president’s office, reported that Thailand’s instant noodle market experienced an 8% to 9% growth in the first half of this year, and the company projects a similar growth rate for the entire year. Pun also revealed that the company expects its lineup to slightly outperform its competitors.
“The Thai President expects its instant noodle sales growth to be slightly higher than the overall market.”
The company holds a commanding 50% share of the market.
According to Pun, the premium instant noodle segment, including Mama’s OK series, shows strong potential to surpass the growth of standard products as the premium market continues to rise. The Mama OK series contributes approximately 15% to the company’s instant noodle revenue.
Pun also forecasted sustained growth for the premium segment in the fourth quarter and into the next year.
Despite a drop in consumer purchasing power in Thailand, marked by a household debt-to-GDP ratio of 90.8% in the first quarter of 2024 as reported by the National Economic and Social Development Council, Pun remains optimistic.
“Any new stimulus measures by the government should improve consumer purchasing power but will not have a significant impact on the company’s sales as instant noodle products are considered a necessity and a staple of the Thai diet.”
Raw material costs, such as wheat flour and palm oil, have remained relatively stable and are expected to stay steady until the end of the year.
As Mama noodles gain traction in the European market, the company plans to boost production capacity at its facility in Hungary.
Expansion plans are also in place for factories in Hungary and Cambodia, although Pun did not disclose the investment budget or timeline for these projects, reported Bangkok Post.
