Thai President Foods Plc, the manufacturer of Mama instant noodles, estimates the instant noodle market will continue to grow this year, with a chance for the premium segment to beat the overall market.
Pun Paniangvait, manager of the president's office, said Thailand's instant noodle market grew by 8-9% in the first half this year and the company projects the same growth rate for the whole year.
"Thai President expects its instant noodle sales growth to be slightly higher than the overall market," said Mr Pun.
The company controls 50% of the market, he said.
Thai President also believes the premium instant noodle segment, such as Mama's Ok series, has strong potential to grow more than its normal products as the premium market surges, said Mr Pun.
The Mama Ok series accounts for around 15% of the company's instant noodle revenue.
He said the company projects continued growth for the premium segment in the fourth quarter, as well as for next year.
Consumer purchasing power in Thailand is dwindling as the household debt-to-GDP ratio was 90.8% in the first quarter of 2024, according to the National Economic and Social Development Council.
Mr Pun said any new stimulus measures by the government should improve consumer purchasing power, but will not have a significant impact on the company's sales as instant noodle products are considered a necessity and a staple of the Thai diet.
Raw material costs such as wheat flour and palm oil are relatively stable and are expected to remain steady until the end of the year, he said.
As Mama noodles continue to gain popularity in the European market, the company plans to increase production capacity at its facility in Hungary.
The company plans to expand its factories in Hungary and Cambodia, said Mr Pun. However, he did not reveal the investment budget or timeline for the expansion.