Thai snack manufacturers face several challenges this year, from rising costs for logistics and packaging to the impact of the border dispute between Thailand and Cambodia.
Thanakorn Burintarachart, managing director of Nature Best Food, a Thai seaweed importer, manufacturer and distributor, said the Thai seaweed market is expected to remain flat this year as consumers remain highly cautious about their spending.
The company sources seaweed from Japan, South Korea and China. Seaweed prices remain stable, but logistics costs have started to rise.
In the business-to-business segment, Nature Best Food supplies seaweed products to restaurants, which have also felt the impact of cautious consumer spending.
The company also processes seaweed into snacks.
The conflict in the Middle East has driven up crude oil-related costs. Nature Best anticipates a packaging cost increase of up to 30% from previous levels, causing the company to consider hiking prices in its snack category when the next batch of packaging arrives.
The recent border conflict between Thailand and Cambodia, which led to border closures and a boycott of Thai products by some Cambodian consumers, has also affected the company, forcing it to seek new markets such as Africa.
Mr Thanakorn forecasts if the Middle East conflict does not escalate further, the company's sales could recover in the second half of the year, which typically marks a high-demand period.
The company plans to continue expanding its snack business, adding value to seaweed products, though there are external factors affecting the snack market, he said.
Chalita Laowanichwith, chief marketing officer at B.K.Y., the manufacturer of Hand Brand and Kaiyang, echoed the concerns over rising costs, including packaging and logistics expenses.
In response, the company is diversifying its sourcing channels and is considering postponing the introduction of new flavours.
