A sharp and continued decline in gum consumption has prompted Meng Seng Sweets Factory Co, the producer of KidKID Thai gum, to diversify into consumer products.
Managing director Rissu Thamkongka said the company is expanding into food and non-food consumer products in keeping with the health-conscious trend in Thailand.
The new KidKID brand will roll out a soy milk drink in the fourth quarter this year.
"The soy milk market is very attractive, with a market value of about 20 billion baht per year. There are few players in the market," said Ms Rissu.
Lactasoy brand controls a 55% market share, followed by Vitamilk at 27%, with other brands accounting for the remaining 18%.
Apart from soy milk, the company has many non-dairy products in the pipeline, including a nut-based beverage.
Yossarun Thamkongka, the company's director, said it is spending about 20 million baht per year to develop new products and marketing support.
"Gum demand started declining by 50% in 2015 and the market contracted at a double-digit rate in the past 2-3 years," Mr Yossarun said.
The market size of Thailand's gum industry was valued about 2 billion baht in 2018, a sharp fall from 3 billion in the past five years.
He said sales of KidKID gum declined to 200 million baht in 2018, after peak sales of 500 million in 1997.
Meng Seng Sweets Factory was set up 35 years ago. Some 80% of its sales come from sweetener, with 15% from trading business and 5% from KidKID gum.
"The future of gum in Thailand is quite gloomy because people believe it is not good for health," he said.
"We will retain gum in our portfolio, but will change the business strategy for it," said Ms Rissu.
"The company will hire an original equipment manufacturer to produce new gum instead of making it itself."
With these new strategies, Meng Seng expects its sales to reach 3 billion baht by the end of this year, up from 2.5 billion last year.