Page 34 - FoodFocusThailand No.187 October 2021

SPECIAL FOCUS

Chilled and Frozen Ready-to-eat Meals Manufacturers of ready-to-eat Opportunities in Exporting
meal products need to compete on marketing strategy, product The chilled and frozen ready-to-eat meals export value is
1development, quality, tastiness, and menu innovations to attract consumers. expected to grow on average by 11-12% per year in 2021-2023.
In today’s industry landscape, large and well-known manufacturers with high The expected growth is driven by the following factors:
production capacity usually gain more than 90 percent of market share. Examples 1. The economic recovery in trading partner countries,
can be seen from the likes of CP ALL PCL, Charoen Pokphand Foods PCL, accelerated by higher COVID-19 vaccination rate.
Prantalay Marketing Co., Ltd., S&P Syndicate PCL, Surapon Foods PCL, and 2. Innovations have enabled ready-to-eat meals to preserve
EK-CHAI Distribution Systems Co., Ltd. flavor and appearance and to offer fresher tastes similar to
prepared meals.
Domestic Demand 3. Diversity of menu options have been invented to serve
The domestic demand for chilled and frozen ready-to-eat meals is expected to consumers’ need for variety.
grow on average by 12-14% per year in 2021-2023. Deep-diving into categories, 4. Thai food products are widely accepted for advanced,
the chilled ready-to-eat meals and the frozen ready-to-eat meals are forecast clean, and safe production processes, hence a popular choice
to see annual average growth of 13-14% and 12-13%, respectively. The factors for consumers during the pandemic.
that drive these growths are: The industry, however, faces some challenges from the
1. The growing numbers of modern retail stores, especially convenience trading partner countries’ strict product inspection process and
stores, allows consumers easier and quicker access to the products. requirement for quality assurance certifications such as HACCP,
2. Urban expansion has shifted consumer behaviors and lifestyle in many GMP, ISO 9001-2000, and HALAL. Labeling and traceability are
ways including the needs for speed and convenience. also additional requirements which result in higher production
3. Modern product development capabilities have helped create a variety costs.
of menu choices for consumers such as Chinese, Japanese, and Italian options.
4. Chilled and frozen ready-to-eat meals offer higher nutritional values than Instant noodles The domestic demand is expected to
freeze dry ready-to-eat meals and hence are more appealing to consumers. grow on average by 3-4 percent annually. The forecast
5. Modern home appliances enable more convenience for storage and 2reflects the country’s uncertain economic situation that
preparation of chilled-frozen meals. Many modern refrigerators come with large reduces consumer spending. However, the domestic market
freezer compartments, microwave ovens are more affordable, and many more could be nearing the saturation point, considering that the
examples. consumption rate of instant noodles in Thailand is much higher
6. Modern retail stores are offering discounts and promotions that are than the global average. Thailand’s instant noodles consumption
attractive to consumers. rate is at 53.2 units per person per year in 2020, while the global
average consumption is at 15.3 units per person per year. Apart
from the saturation, the chilled and frozen ready-to-eat meals
Thailand’s ready-to-eat meal industry is expected to and fresh-and-ready-to-eat meals are competing for market
share in the ready-to-eat market. And there are also players in
continuously grow in 2021-2023. The meals can be divided other types of food such as bakery, snacks, crispy cereals, and
into two categories based on production and storage. ready-to-drink milks. These are factors that heat up the
competition in the market. Therefore, continuous product
developments are crucial for manufacturers to compete.
The exports volume is projected to grow by an average of
Chilled & Frozen Meal 9-10% yearly in 2021-2023, driven by the economic recovery
VS Instant Noodle in of trading partner countries after COVID-19 vaccination efforts.
In cross border trading, neighboring countries have a high
tendency of relaxing regulations on release of goods and border
Ready-to-eat Market crossings. In addition, the consumption rate of instant noodles
in ASEAN countries is still relatively low and this poses an
opportunity for instant noodles export for Thai manufacturers.
Instant noodles are the main product of dry and shelf-ready
meals. With the large domestic market and economies of scale
production, Thailand can produce and export instant noodles at
a lower cost per unit. Many producers of instant noodles focus
more on exporting mainly to ASEAN countries and the US, as
the domestic market is becoming saturated and there is strong
competition locally.
The chilled-frozen ready-to-eat meals produced for domestic
sales with high popularity due to convenience and reasonable
prices when compared to prepared meals, and easy accessibility
through convenience stores. However, there are opportunities
for growth in exporting from the increasing popularity of Thai
food in other countries and attractive prices.

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เอกสารอ้างอิง / References
ศููนย์์วิิจััย์กรุุงศูรุี (Krungsri Research)
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