Packaged food is set to post positive retail value sales and growth in Thailand over the next five years, with the health and wellness trend, and social media both impact on their sales.
“Offerings of low fat, no sugar, high fiber, organic and premium are set to do well, and consumers will benefit from explicitly highlighting the beneficial qualities of products, on their packaging,” said the Euromonitor Digest, the online publication of the Export Management Bureau of the Department of Trade and Industry (DTI).
The report said baked goods, processed meat and seafood, drinking milk, and edible oils all saw substantial growth through diversifying offerings and adding premium, healthy options for consumers.
“However, ready meals recorded the most substantial level of growth, with busy consumers appreciating the convenience and variety that these products provide. Ready meals have also benefited from expansion in convenience stores, a channel more frequently used by consumers, to purchase daily essentials,” it said.
Social media marketing is also a tool that encourages healthy eating among consumers -be it through influencers, advertisements, or following the lifestyles of favorite celebrities.
In 2019, social media was increasingly used by manufacturers due to the lower cost of reaching a wider audience, it said.
The report noted that players are also expected to create innovations that respond to the growing number of busy, urban consumers who want convenience and quality, at an affordable price point.
“As the elderly population increases in Thailand, so will the offerings of packaged foods specifically for elderly consumers -with players producing easy-to-eat options,” it added.
The Euromonitor Digest also expects that an increase in wages will also see a rise in purchasing of premium items, and modern grocery retailers will continue to gain share from traditional channels.
The internet channel is also expected to grow, with a range of third-party online food delivery services, as well as e-commerce platforms such as Shopee.
“Competition in packaged food is set to remain fierce, particularly with the influx of new small and niche players responding to increasing consumer demands,” it said.