In 2023, the annual per capita snack consumption in Thailand reached 10.52 kilograms, equivalent to the combined weight of 161 packets of Lay’s potato chips weighing 65 grams each, meaning that on average, Thai consumers consume one bag of chips every two days.
This market continues to grow at an annual rate of around 5%, and across Southeast Asia—with a combined population of 670 million in six countries—over half are under the age of 35. The combination of an upgrading consumption structure and demographic dividend is fueling a rapidly expanding snack market. According to Statista, the Southeast Asian snack market is projected to exceed US$43 billion by 2028, with a compound annual growth rate of 8.68% from 2023 to 2028, far higher than the global average of 4.2%. This promising market is attracting an increasing number of Chinese snack brands to head south.
Recently, Chinese snack company Yanjin Shop announced plans to invest 220 million yuan to set up a wholly-owned subsidiary and build a production base in Thailand. This move comes just months after the company established a subsidiary in Vietnam in January. The Bangkok Post commented that this marks a shift for Chinese snack companies from simple “product exports” to full-chain “industrial exports.” Across the industry, similar moves are happening: Qiaqia Food invested 500 million yuan in 2019 to build a full industrial chain sunflower seed base in Thailand, reducing raw material costs by 20%, with its “coconut-flavored sunflower seeds” reaching over 10 million yuan in sales within three months; Panpan Foods is setting up production lines in Indonesia and launching “Indonesian shrimp crisps” tailored to local tastes; Weilong spicy strips have become so popular in Thai schools through aggressive social media marketing that they are traded among students as a kind of “hard currency”; Jinzi’s small fish snacks sold over 100,000 packs in a single day on Shopee flash sales, with overseas direct exports achieving triple-digit growth; brands such as Three Squirrels, Xu Fuji, and Orion have also established both e-commerce and offline channels across Thailand, Malaysia, Singapore, and other markets.
Chinese brands in Southeast Asia generally follow two competitive strategies: the “Asset-light” model, represented by Weilong and Jinzi, relies on cross-border e-commerce, social platforms, and short video livestreaming for rapid penetration—this model requires low capital investment and allows for quick market testing, but comes with higher supply chain costs and exposure to platform traffic volatility; and the “Asset-heavy” model, represented by Qiaqia and Panpan, involves building factories locally, sourcing raw materials, and setting up local sales networks to reduce logistics and material costs and improve delivery speed—although this approach requires higher upfront investment and has a longer payback period, it can establish long-term cost and brand advantages.
At the same time, consumer trends are shifting: surveys in Indonesia show that 70% of consumers are willing to pay a premium for “low-sugar” and “high-protein” products, while young consumers in Malaysia and Vietnam are showing increasing interest in “additive-free” and “high-fiber” snacks. Health-focused, functional, and fun products are emerging as the three main purchase drivers in the snack category. This creates new opportunities for Overseas brands, but also raises higher demands for localization and regulatory compliance—flavors, packaging colors, product names, and even advertising copy must align with local culture. For example, spicy snacks in Thailand are often packaged in bright red, while the orange-red favored by Chinese brands can be mistaken locally for sour flavors; food labeling and formulation standards differ between Thailand and Indonesia, requiring companies to strike a balance between preserving original flavors and meeting compliance requirements.
In terms of channels, Chinese snacks currently account for less than 1% of shelf space in Thailand’s mainstream retail outlets, where traditional mom-and-pop stores and local convenience chains still dominate. Although online sales are growing rapidly, offline distribution remains the key to long-term market presence. Meanwhile, Southeast Asian domestic brands are fighting back: Indonesian food giant Indofood has launched its “Chitato Lite” healthy snack line to compete directly with Chinese spicy and potato chip products, while Thai local brands are cementing their market share through school sponsorships and youth community engagement.