Thai Households Tighten Belts: Energy Drinks and Instant Noodles Feel the Pinch

MONDAY, JUNE 09, 2025

Leading manufacturers of mass-market staples like Red Bull and Mama instant noodles report a significant slowdown in sales, a stark indicator of diminishing purchasing power among Thailand's lower-income households

 

Two of Thailand's most ubiquitous mass-market products, energy drinks and instant noodles, are experiencing a notable contraction in sales, signalling growing financial strain on the nation's grassroots consumers.

 

Executives from the companies behind household names such as Krating Daeng (Red Bull) and Mama instant noodles point to a significant reduction in consumer purchasing power as the primary culprit.

 

These product categories, deeply embedded in the daily lives of foundational consumers, often represent essential, cost-effective choices.

 

Energy drinks, with their primary target audience being 'blue-collar' workers, and instant noodles, particularly the popular 7-baht packets, serve as go-to options for their convenience, taste, and affordability.

 

However, 'economy' now appears to be the overriding consumption driver.

 

In interviews with Krungthep Turakij, senior executives from major corporations long established in the grassroots market provided a consistent assessment: "Diminishing consumer purchasing power" is the dominant factor undermining growth in both the energy drink and instant noodle sectors.
 

 

Varawut Pongchinpak

 

Varawut Pongchinpak, CEO of Sales and Marketing for the Thailand Business Group at TCP Group, highlighted the energy drink market, valued at approximately 22 billion baht for 2025.

 

Originally projected for a 6% growth, the first six months of the year have seen economic signals and sluggish purchasing power necessitate a downward revision to just 3%.

 

"The direction of the energy drink market this year is expected to show less growth because the first half was flat, largely due to the affected purchasing power of grassroots consumers," Varawut stated. "The economy is likely to be more challenging."

 

For the latter half of the year, TCP's strategy involves launching new products and expanding its target audience to younger demographics.

 

This also aligns with the burgeoning 'premium energy drink' or modern energy market, which, despite its smaller current share (around 10% or 2 billion baht), is projected to grow by at least 35% in 2025.

 

This segment benefits from consumers seeking refreshment and new flavours, exemplified by offerings like Red Bull Soda and its endorsement by K-Pop star BamBam of GOT7.

 

Despite some brands attempting to elevate their image, the three largest energy drink brands maintain their 'Magic Price' point of 10 baht, or 12 baht per bottle.
 

 

Pan Paniangwet

 

The instant noodle market, equally substantial at around 20 billion baht, is fiercely contested by three major brands, with a growing influx of premium Thai and Korean brands.

 

Pan Paniangwet, Manager of the Office of the President at Thai President Foods (Mama's parent company), anticipates 4-5% growth for the overall instant noodle market in 2025.

 

This optimism is primarily driven by the "phenomenon" of premium instant noodles, transforming 2025 into a "year of alternative instant noodles."

 

However, when focusing solely on the traditional 7-baht packet, Pan projects no growth, stating bluntly, "Consumers lack purchasing power – no money!"

 

"In 2025, the traditional packet instant noodle market cannot drive overall growth," he explained. "But for the remaining six months, I believe the instant noodle market will still grow, albeit primarily from the premium segment. Instant noodles remain a valued food for consumers; it's not just about convenience. While many eat it for economy, it's not solely a choice born of poverty but also preference. Premium instant noodles are savoured more."

 

In the first quarter, Thai President Foods reported sales revenue of 7,051 million baht, a modest 0.68% increase.

 

However, net profit saw a significant 14.24% reduction to 981 million baht, largely due to escalating production costs, particularly palm oil prices, which averaged 45-46 baht per kilogram, up from 38 baht per kilogram the previous year.

 

 

Mama's strategy for the second half of the year involves launching new flavours and initiating major annual promotions to stimulate sales.

 

The company aims to reach 20 billion baht in revenue for 2025, a 4% increase from 2024's 18 billion baht.