The outlook for the economy in the latter half of 2024 appears optimistic for TCP Group, the producer and distributor of Krating Daeng (Red Bull), contingent upon the government’s ability to restore confidence among investors and consumers.
As the tourism sector shows signs of recovery, local non-alcoholic beverage markets are anticipated to sustain their growth, according to TCP Group’s Chief Executive.
On the subject of the government’s proposed 10,000-baht digital handout, it is expected to provide a short-term boost to the economy.
However, a call for a long-term strategy to enhance the nation’s competitiveness remains essential.
“Increased disposable income will positively impact our company,” stated the Chief Executive.
“Restoring confidence among foreign investors is crucial, achieved by presenting a clear vision of the nation’s plans and direction.”
The local energy drink sector is anticipated to experience growth, driven by economic recovery and rising employment rates.
“We expect a 10% increase in energy drink sales this year,” the CEO added.
Challenges for the second half of the year include geopolitical tensions affecting the global economy and current flooding in northern Thailand impacting sales to regional trading partners.
As climate change intensifies flooding and drought in the country, establishing sustainable water management practices is critical.
Thailand is experiencing worsening cycles of flood and drought, highlighting the need for urgent action.
“Water issues significantly affect the economy, particularly the agricultural sector, which could lead to labor complications,” the Chief Executive noted.
Stressing that water resources underpin economic activities, he urged the private sector to prioritize water resilience, security, and sustainability.
TCP Group is dedicated to sustainable water management, aiming to reduce water consumption in its production processes to ensure a net positive impact on water resources by returning more water to nature and communities than the company uses by 2030.
The company is already on track to achieve this goal.
“We are also considering implementing this plan in our manufacturing plants abroad, including those in Vietnam and China,” the CEO indicated.
As public awareness of sustainability issues grows, the private sector must act promptly to mitigate risks associated with climate change.
Integrating sustainability into operations requires companies to assess their workflows and processes to identify areas for alignment with sustainability objectives.
It is recommended that firms develop realistic action plans and establish dedicated teams to advance their sustainability initiatives.
“Pursuing sustainability is a long-term commitment. Companies must allocate resources, implement action plans, and collaborate with public and private sector partners,” the Chief Executive concluded.
