Saha Pathanapibul Plc, the distributor of Mama instant noodles, is optimistic about the growth of the Thai instant noodle market in the face of a challenging economic environment.
Vathit Chokwatana, the president and executive director of Saha Pathanapibul, expressed concerns about the Thai economy being impacted by global economic slowdown, affecting the demand in the manufacturing sector and the purchasing power of consumers, especially in upcountry areas.
Despite expecting economic challenges, Vathit remains positive about Thailand’s economic outlook, which he believes hinges on global economic recovery.
The upcoming nationwide increase in the daily minimum wage to 400 baht from Oct 1 is expected to have an impact on the company, although it is manageable. Vathit also expressed worries about the potential implications of the wage hike on small and medium-sized enterprises.
While the company faces challenges such as rising transport costs and volatile palm oil prices, Vathit highlighted that declining wheat flour prices balance out the costs, making them manageable. As a result, the company aims to maintain current product prices for as long as possible.
Despite the economic landscape, Vathit noted a 10% growth in the local instant noodle market in the first four months of the year, with Mama’s sales aligning with market trends. He emphasized that Mama products see consistent growth regardless of economic conditions, challenging the notion of an “Mama index.”
Although specific growth targets were not disclosed for Mama, Vathit acknowledged the instant noodle market entering a mature stage, with potential for growth in the premium instant noodles segment, which currently represents 20% of the market.
