Cargill Meats (Thailand) Co, a subsidiary of a US-based food producer and distributor of food and agricultural products, plans to expand its product offerings in the Thai market by introducing its first protein-based snack next year.
Thiti Tuangsithtanon, the managing director of the company, announced that the extension into a new category under the Sun Valley brand is slated for the first half of 2024.
“Snacks represent a new business category for Cargill in this region. We chose to debut this snack in Thailand because of the substantial market size and love of snacking among people of all ages,” said Mr Thiti.
“The protein snack market, in comparison with the potato chip segment, is relatively small, presenting an opportunity for growth in this niche.”
Cargill Meats stated that the Sun Valley snack line, designed for the younger generation of consumers, will be accessible at major supermarkets, hypermarkets, and online channels.
Mr. Thiti explained that diversifying the product portfolio is a strategic initiative to align with changing consumer preferences.
Founded in Thailand in 1990, Cargill Meats manages two facilities in Saraburi and Nakhon Ratchasima, exporting approximately 70% of its cooked chicken products to 20 markets, which include Japan, the UK, Canada, Hong Kong, the Philippines, and Singapore.
He mentioned that the chicken market is anticipated to surpass pre-pandemic levels this year.
Between 2018 and 2023, the market experienced a yearly growth rate of 5.7%.
Mr. Thiti stated that the chicken sector, especially the cooked chicken segment, is expected to achieve a growth of 3.5-5% in the next five years, driven by the high demand for convenient food options in the Asian market.
“The proliferation of convenience stores across the country and the expansion of quick-service restaurants play a pivotal role in propelling the growth of cooked chicken,” he said.
“Cooked chicken emerged as the fastest-growing category within the chicken market, achieving 10% growth to 4.9 billion baht in 2022. This growth was driven by popular fried chicken snack products, such as chicken nuggets, chicken pop and others.”
Moreover, Mr. Thiti mentioned that the change in consumer lifestyles post-pandemic has encouraged a more positive inclination towards stockpiling and a heightened appreciation for frozen meat.
In addition to protein snacks, the company intends to broaden its product portfolio by creating an extensive range of chicken products. This strategic move aims to cater to market demand and attract new clients in emerging markets, as mentioned by him.
As per Mr. Thiti, Cargill’s goals for the next 3-5 years involve achieving the status of the leading exporter of cooked chicken, solidifying its reputation as an outstanding workplace, and positioning the Sun Valley brand among the top three in Thailand’s cooked chicken market.
