Cargill Meats (Thailand) Co, a subsidiary of US-based Cargill, is diversifying into protein-based snacks in 2024.
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. Thiti said, “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.”
Presently, the protein snack market is relatively a small niche category compared to the potato chip segment, as such it offers a strong growth opportunity. The Sun Valley snack line targets the younger generation of consumers and will be available at leading supermarkets, hypermarkets and online channels.
Established in Thailand in 1990, Cargill Meats operates 2 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.
In 2024, the chicken segment is expected to outperform pre-pandemic levels with annual growth of 5.7% from 2018 to 2023. According to Thiti, the cooked chicken segment is anticipated to grow the fastest over the next 5 years due to rising demand for convenience food, attributed to rising popularity of convenience stores and quick-service restaurants in post-pandemic period.
Cooked chicken category achieved 10% growth in 2022 to reach Bt 4.9 billion (US$137.65 million) and this was driven by popular fried chicken snack products such as chicken nuggets, chicken pop and others.
Apart from protein snacks, the company also 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. Cargill’s ambition in the next 5 years is to become the leading exporter of cooked chicken, and elevating the Sun Valley brand to be a Top 3 brand in Thailand’s cooked chicken market.
