Thailand’s instant noodle segment is valued at Bt 15 billion (US$470.5 million) and has an average growth of 5-6% annually with Mama brand being the market leader with 50% share followed by Wai Wai (24%) brand owned by Thai Preserved Food Factory and Yum Yum (21%), an Ajinomoto brand. Sales of instant noodles are expected to surge by more than 15% in 2020 due to panic buying.
Vathit Chokwatana, President of Saha Pathanapibul Plc, the distributor of Mama instant noodles, said demand for noodles in sachet and cup packaging grew by 20% and 10% respectively in the 1st quarter.
He predicted overall sales of instant noodles to grow at a double-digit 15.8% to reach Bt 22 billion (US$690 million) by the end of 2020. In 2019, cup noodles took 74.7% share of the market followed by noodles in plastic sachets (25.3%). To meet robust demand in 2020, the producer of Mama brand, Thai President Food Plc, has increased its production capacity by 30% in March to more than 6 million units daily.
The strong demand for instant noodles could also be attributed to instant noodle players launching aggressive promotional discounts to their consumers during this challenging period, acknowledging that now is a difficult time for everyone. With lower margins, instant noodle suppliers focus more on improving their production and distribution efficiency so as to trim operating costs.
In terms of instant noodle exports, Thailand is now the 3rd largest exporter of processed noodles after China and South Korea. Thailand’s Ministry of Commerce has recently released export figures showing that exports of instant noodles soared during the 1st quarter of 2020 in ASEAN markets amidst the Covid-19 crisis.
Auramon Supthaweethum, Director General of the Ministry’s Department of Trade said, “The pandemic has led people to stay at home and stock instant noodles that could be stored for a long period.”
Auramon added that instant noodles are among a few food products that meet present demand as it is easily available, conveniently prepared, low price and with wide option of variants/flavours.
Thailand’s instant noodle exports grew by 11% year-on-year in the 1st quarter, with export value amounting to US$57.8 million. Southeast Asia is the biggest market taking more than 55% of total exports. Auraman said Cambodia is the largest market for Thai instant noodles in this region consuming half of all its exports to ASEAN followed by Myanmar, Laos and Vietnam.
Instant Noodle is star performer during pandemic
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