TCP Group, the producer of Krating Daeng energy drink, has teamed up with DHC, a leading Japanese food supplement producer, to tap into Thailand's 7-billion-baht vitamin C market this year.
Prapaipak Weigl, the company's global marketing division director (F&B), said that since the onset of the Covid-19 pandemic, consumers have become more health-conscious and shifted their healthcare behaviours more towards prevention.
Under the partnership with DHC, TCP Group and the Japanese firm jointly developed ''Hi! x DHC'', a 200% vitamin C shot drink, to the market.
The formula for this new product was introduced to the Thai market last month, replacing the existing "Hi! Vitamin C'', which was launched by the group to the market in May last year.
Hi! x DHC is aimed at Gen Y customers aged 18-35 who are health-conscious. It is now available at 80,000 outlets across the country.
The company will spend 200 million baht to promote the new product within the next 12 months.
"We've chosen DHC because it is the leading health supplement brand by market share in Japan and DHC vitamins are now also the most popular souvenir from Japan,'' Ms Prapaipak said.
Gary Gauntt, executive director for the international market development department at DHC, attributed the company's partnership with TCP Group to the latter's deep understanding of Thai consumers and strong presence in the market.
"We understand that today's consumers are health-conscious and like to incorporate healthy habits into their lives,'' Mr Gauntt said.
According to Nielsen Database in October 2021, the sales value of functional drinks in Thailand grew at an average of 10% during 2018-20, with a value of 7.02 billion baht, 8.37 billion baht and 9.1 billion baht, respectively.
Of the total, 7 billion baht is estimated to belong to vitamin C drinks and the remainder from other products.
"The overall market value for Thailand's functional drinks is forecast to contract by 5% this year to 8.6 billion baht mainly because of lockdown measures to contain Covid-19 infections," Ms Prapaipak said.
"The market, however, is likely to resume to growth of 9% to 9.39 billion baht next year.''