Cargill Meats (Thailand) Co, a subsidiary of a US-based food producer and marketer of food and agricultural products, is set to broaden its product range by introducing its first protein-based snack to the Thai market next year.
Thiti Tuangsithtanon, managing director of the company, said the expansion into a new category under the Sun Valley brand is scheduled 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."
The Sun Valley snack line targets the younger generation of consumers and will be available at leading supermarkets, hypermarkets and online channels, said Cargill Meats.
According to Mr Thiti, diversifying the product portfolio is a strategic move to meet evolving consumer demand.
Established in Thailand in 1990, Cargill Meats operates two factories in Saraburi and Nakhon Ratchasima, exporting about 70% of its cooked chicken products to 20 markets, including Japan, the UK, Canada, Hong Kong, the Philippines and Singapore.
He said the chicken market this year is expected to outperform pre-pandemic levels.
The market recorded an annual growth rate of 5.7% between 2018 and 2023.
The chicken sector, particularly the cooked chicken segment, is anticipated to grow 3.5-5% over the next five years as the Asian market has high demand for convenient food options, said Mr Thiti.
"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."
Additionally, the shift in consumer lifestyles following the pandemic has fostered a more favourable attitude towards stocking up, as well as an increased appreciation of frozen meat, said Mr Thiti.
Other than protein snacks, the company plans to diversify its product portfolio by developing a comprehensive range of chicken products to meet market demand and attract new clients in emerging markets, he said.
According to Mr Thiti, Cargill's objectives for 3-5 years include becoming the leading exporter of cooked chicken, establishing itself as an exemplary workplace and elevating the Sun Valley brand to a top-three position in Thailand's cooked chicken market.