Thailand's snack food market is gearing up for significant growth as Chao Foods Industry Co., Ltd. (CHAO) plans to launch 15 to 20 new products by 2025, targeting both local and international markets. With the overall snack market valued at over 100 billion baht, the company aims to capitalize on rising demand for processed snacks, particularly rice-based products and pork crisps, which have shown substantial growth.
CEO Napath Morin announced plans to expand the company's presence not only within Thailand but also overseas, bolstered by joint ventures being established in the United States and Canada. "Even though we are already the leader in both markets, we believe we can increase market share for rice crispy and pork stick snacks," Morin stated. The company currently holds approximately 79% market share of rice crispy snacks and about 62% of pork crisps, solidifying its position as the market leader.
The strategy for 2025 encompasses ramping up production capabilities, with CHAO investing 300 million baht to build a new factory aimed at producing more non-pork snack products to meet international demand. This facility is expected to become operational by early 2026 and will help fulfill projected growth rates of 12-15% over the next three years, with expectations for revenues reaching 2.2 billion baht.
Morin elaborated on the company’s focus toward healthier snack options aligning with current consumer trends. "The expansion of production capacity will help increase the potential to expand the business, especially internationally," he noted. To attract health-conscious consumers, CHAO plans to launch products such as cereals, fish skin snacks, and other innovative snacks.
To offset the competitive nature of the market, CHAO is also enhancing its promotional strategies. Utilizing modern marketing approaches, including selecting popular influencers and advertising across multiple platforms, the company aims to cultivate brand awareness effectively. They plan to use celebrity endorsements and various marketing campaigns, distributing free samples to engage potential customers.
Looking beyond its successful domestic operations, CHAO is eyeing growth within the American and Canadian markets. By forming joint ventures, they intend to establish their brand within Asian supermarkets before branching out to acquire customer bases through other retail channels. Similarly, initiatives are underway to solidify their presence in China by increasing distributor partnerships.
The renewed vigor for international expansion reflects the company’s larger goal of diversifying revenue streams. Currently, CHAO sources approximately 75% of its revenue from domestic sales, but with aspirations to raise this figure, it aims to have 35% of its revenue coming from overseas markets by 2030.
With the imminent launch of new snack products and strategic expansions, the outlook for CHAO and the broader Thai snack food market remains promising. This plan combines innovation with strategic marketing, positioning CHAO to meet the ever-evolving demands of snack consumers and set the stage for continued growth for years to come.