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Snack-food market expands amid higher costs and slower spending

By The Nation
Published on June 10, 2008

The market for snack foods has shown slight growth of 4-5 per cent this year, from Bt12 billion last year to nearly Bt12.5 billion this year, findings by the Kasikorn Research Centre showed last week.

Snack foodss are suffering from rising production costs and falling consumer purchasing power.

The Public Health Ministry's regulations prohibiting the giving away of toys and lucky draws with snack products have also hit the business.

The research showed the cost of raw materials like wheat flour, palm oil, sugar and potatoes rose 50-100 per cent year on year last month.

Producers cannot increase prices when consumers have reduced snack budgets.

Snacks that are 10-20-per-cent cheaper and imported from Malaysia and Indonesia have prevented domestic products from increasing their prices.

With strong competition and costs rising, KResearch suggests snack producers develop flavour, quality, healthiness and packaging to compete with imports.

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Snack-food market expands amid higher costs and slower spending

The market for snack foods has shown slight growth of 4-5 per cent this year, from Bt12 billion last year to nearly Bt12.5 billion this year, findings by the Kasikorn Research Centre showed last week.

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