Inside Thailand’s New Mega Bakery: 2.4 Million Slices Daily

Thailand’s bakery industry is experiencing remarkable growth, driven by evolving consumer preferences, significant investments, and strategic partnerships. Companies are expanding production capacities, introducing innovative concepts, and forming alliances to meet the increasing demand for bakery products.​

CPRAM’s Strategic Expansion with New Sliced Bread Factory

CPRAM Company Limited, a leading player in Thailand’s ready-to-eat food sector and owner of the “Le Pan” bakery brand, has made a substantial investment exceeding 2 billion baht to establish a state-of-the-art sliced bread factory in Chon Buri province. This facility boasts a production capacity of up to 2.4 million slices of bread per day, effectively doubling the company’s total output to 4.4 million slices daily when combined with its existing Lat Krabang factory. ​

Wisade Wisidwinyoo, President of CPRAM, emphasized the strategic importance of this development, stating that the new factory is designed to cater to the rapidly growing bakery market in Thailand. The facility operates under the “green factory” concept, utilizing solar panels that generate two megawatts of clean energy, thereby reducing greenhouse gas emissions.

Market Dynamics and Consumer Trends

The Thai bakery market is projected to reach a value of 40 billion baht by 2024, with CPRAM’s “Le Pan” brand holding a 20% market share. This growth is largely attributed to shifting lifestyles that favor convenient and diverse food options. Wisidwinyoo noted that the increasing popularity of bakery products reflects these lifestyle changes, with people seeking more convenient and diverse food options or ready-to-eat food.

S&P Syndicate’s Innovative Approaches and Expansion Plans

S&P Syndicate Public Company Limited, another prominent player in the Thai bakery and restaurant sector, is implementing innovative strategies to enhance its market presence. The company introduced the “S&P Bakery Mart” concept, a new store format that offers an expanded range of bakery products. An S&P Bakery Mart has a total space of 60 square meters, allowing it to display up to 400 bakery items, compared to the original S&P bakery shop concept, which had an average space of 30 square meters and could display only 200 products.

In addition to new store concepts, S&P Syndicate has announced plans to open 75 new bakery shops and marts over the next three years, aiming to increase the total number of bakery branches to 375 nationwide by the end of 2025. The company allocated 50 million baht to open 25 new bakery shops and marts in the current year and plans to invest 60 million baht to renovate 30 existing bakeries and restaurants. Arth Prakhunhungsit, S&P’s chief operating officer, expressed confidence that the revenue of S&P bakeries and restaurants would recover to pre-crisis levels, anticipating surpassing 2019 sales in the following year.

International Partnerships and Market Entry

The Thai bakery market’s potential has attracted international interest, leading to strategic partnerships aimed at expanding product offerings and market reach. SPC Samlip Co., a major South Korean producer of bread, has joined forces with Siam Makro Public Co., a retail affiliate of Thailand’s largest conglomerate, CP Group. The memorandum of understanding between the two companies includes plans to explore establishing a joint venture in bakery production and distribution in Thailand. This collaboration aims to operate in-store bakery shops and distribute packaged bakery products through Siam Makro’s extensive retail channels in Thailand and Southeast Asia. ​

Challenges and Future Outlook

Despite the positive growth trajectory, the Thai bakery industry faces challenges, including intense competition, fluctuating raw material costs, and evolving consumer preferences. The market is populated by numerous players, both large and small, resulting in fierce competition. Additionally, the prices of key raw materials such as wheat flour and sugar can be volatile, potentially impacting production costs. Consumers also have heightened expectations regarding product quality and diversity, which businesses must address to remain competitive.​

Nevertheless, the overall outlook for Thailand’s bakery industry remains optimistic. Companies that can adapt to market trends, prioritize sustainability, and meet consumer demands for quality and convenience are well-positioned for success. Ongoing investments in innovation, expansion, and strategic partnerships are expected to drive continued growth and transformation in the sector.​

Conclusion

The Thai bakery industry is undergoing significant evolution, marked by substantial investments, innovative concepts, and strategic collaborations. Companies like CPRAM and S&P Syndicate are leading the way with expansions and new store formats, while international partnerships, such as that between SPC Samlip and Siam Makro, highlight the market’s attractiveness. As the industry continues to grow, businesses that embrace innovation, sustainability, and consumer-centric strategies will thrive in Thailand’s dynamic bakery market.

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