Issue 22

 

 

Faced with the current trend towards healthier snacks and low-sugar food, the Thai confectionery industry is adapting to changing consumer trends by focusing on innovation and an understanding of export markets in order to manufacture quality products that match consumer demands.

As one of the leading producers and exporters of sugar, Thailand’s confectionary industry has an advantage over many competitors, says one of the country’s leading manufacturers.

“Thailand is the world’s fourth largest sugar producing country and the second biggest sugar exporter, [as such it] benefits from lower material costs,” says Jittapa Angkhasekvilai, assistant managing director, and second-generation of the founding family, of General Candy. According to data from the Ministry of Commerce, in 2013 Thailand produced 100 million tonnes of sugar, exporting 7.5 million tonnes with a total revenue of 87.9 billion baht.

Founded in 1983, General Candy specialises in sweets, licorice and fruit snacks but is best known in Thailand for its heart-shaped “HartBeat” candy and love quotes on its packaging. Its main export markets are the Middle East, USA, Canada, Australia, South Africa, India and Japan.

Angkhasekvilai believes that in addition to low costs, Thai confectionary manufacturers benefit from advanced manufacturing technology and a drive for innovation. “To keep up with changing consumer trends, our research and development team creates innovative products and consumer-preferred tastes for local, international, regional and global consumers,” she says.

Growing awareness of the health implications of an excessively sweet diet has also influenced the company’s direction. “We also take into account consumers’ concerns about health and sugar intake and have introduced a new fruit snack which is made from 100% real fruit while also adding more nutrients into candy and licorice products,” she says.

According to Angkhasekvilai, taste preferences for Thais and overseas markets differs widely, as Thai consumers prefer extremely sweet products. Licorice products sold in Thailand are mostly sugar-coated, whereas in other markets consumers prefer less sweet products that taste more like natural fruit.

Another industry trend is to ensure products meet Halal standards. “The Halal market in Thailand is separated into two kinds of products, one is for local Muslims, and the other is to showcase for exporters to Muslim countries,” says Angkhasekvilai. “Also, some people believe Halal products are cleaner than normal products.”

She believes that the forthcoming ASEAN Economic Community (AEC) will facilitate exporters to expand to new markets, eliminate import barriers, and also help manufacturers to lower the cost of materials and ingredients. “It will be more competitive, more challenging, but of course more fun to create new markets and expand the business,” she says. “We will have more room to do marketing activities in member countries.”

Part of the company’s marketing strategy is to attend trade fairs organised by the DITP. “We attended the fair for Thai food with the DITP in the Middle East and Myanmar,” Angkhasekvilai says. “But recently we go to international fairs by ourselves, as we have the connections in those markets already.”

For more information, visit www.generalgroup.com.
Words by Sirinuch Borsub