Thailand's instant noodle sector grew by only 0.4% last year, the lowest rate since the food debuted here 44 years ago.
Vathit Chokwatana, a vice-president of Saha Pathanapibul Plc, the distributor of Mama instant noodles, said overall instant noodle sales grew by only 1% in 2014 and almost did not grow at all last year due to the unfavourable economy, falling farm prices and drought.
Figures from Nielsen Co (Thailand) show instant noodle sales grew marginally by 0.4% year-on-year in the first 11 months of 2015, and Mr Vathit said full-year sales would also show 0.4% growth to 14.6 billion baht. Before 2014, instant noodle demand grew by 5-9% annually.
Executives of other instant noodle brands could not be reached for comment on weak sales growth last year.
Mama is the leader in the instant noodle market, commanding a 51% market share, followed by Yum Yum and Wai Wai brands.
However, Mr Vathit forecasts an improving market this year on the back of stimulus packages and the expansion of retail outlets upcountry, particularly in border towns.
The Asean Economic Community will also drive a flow of regional tourists to Thailand. This will benefit locals by boosting their incomes, and Mama instant noodles will cash in on the trend, Mr Vathit said.
"I believe in economic improvement this year," he said.
"The government will continue to launch more economic measures to stimulate the economy, and this will result in higher instant noodle consumption in the next 12 months."
He expects overall instant noodle demand will grow by 2% in 2016, while sales of Mama will beat that with 5% growth.
Last year, Mama sales contributed 33% of Saha Pathanapibul's total of 28 billion baht.
"The local instant noodle market is saturated," Mr Vathit said.
He said weak consumer purchasing power had led to a fierce price war among major players.
Of the overall market, 74% is packaged instant noodles 26% cup noodles. Thais eat an average of 45 packs of instant noodles each year, according to the National Food Institute.
Instant noodles are cheaper in Thailand than in China or Japan. Packaged products cost six baht, while cup noodles range from 12-15 baht.
"The cheap price is a barrier to new players moving into the market," Mr Vathit said.
Mr Vathit said Saha Pathanapibul would spend 250 million baht to promote its instant noodles this year including new flavours.
People normally eat more instant noodles in a bad economy, but this trend has changed in the past two years.