Two of Thailand’s most widely consumed mass-market products—energy drinks and instant noodles—are witnessing a slowdown in sales as diminished purchasing power among lower-income consumers pressures overall market growth in 2025.

Executives from leading domestic producers report that foundational product categories traditionally favored for affordability and accessibility are now struggling to grow.

The energy drink market, valued at approximately 22 billion baht in 2025, was initially projected to expand by 6% for the year.

However, TCP Group revised growth expectations to just 3% after a stagnant first half.

According to the company, blue-collar consumers—who constitute the primary customer base—have significantly cut back on discretionary spending.

The flat performance during the initial six months of 2025 is attributed primarily to weakened grassroots consumption patterns, with indications of broader economic pressures affecting essential consumer behavior.

In response, TCP is implementing strategies to stimulate demand, including the launch of new product formats and outreach to younger demographics.

One area of targeted growth is the premium energy drink segment, currently valued at around 2 billion baht.

This category is projected to grow by 35% in 2025, supported by trends favoring new flavors and celebrity endorsements.

Offerings such as Red Bull Soda and promotional campaigns featuring international pop culture figures aim to expand consumer appeal.

Despite rising costs and branding efforts, major energy drink producers continue to maintain a fixed retail price of 10 to 12 baht per bottle to preserve accessibility in the core market segment.

Parallel market dynamics are evident in Thailand’s instant noodle sector.

With a total market value of around 20 billion baht, traditional low-cost instant noodles, such as the widely consumed 7-baht packets, are experiencing stagnation.

Thai President Foods, producer of the Mama brand, projects flat sales in this legacy segment for 2025.

While overall market growth is forecast at 4–5%, this expansion is being driven by the rising popularity of premium instant noodles.

Company leadership describes 2025 as the “year of alternative instant noodles,” with strong demand for premium Thai and Korean-style offerings reshaping consumer trends.

The emergence of new flavor profiles and upscale branding are contributing to a shift in purchasing behavior, with price points and packaging targeting middle-income consumers seeking variety and value beyond necessity.

In the first quarter of 2025, Thai President Foods reported a 0.68% year-on-year increase in total sales, reaching 7.05 billion baht.

However, the company’s net profit fell by 14.24% to 981 million baht, attributed largely to rising input costs.

Palm oil, a key production ingredient, averaged 45–46 baht per kilogram during the period, up from 38 baht the previous year.

To counter market headwinds, the company plans to introduce new flavors and roll out its annual promotional campaign during the second half of the year.

Revenue targets for 2025 stand at 20 billion baht, up 4% from the 18 billion baht reported in 2024.