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2 Feb 2011

Industry

Bioplastics: A Challenge to Thai Plastic Industry (Business Brief No.3039)

Currently, bioplastics are playing a greater role in the Thai plastics and related industries, boosted by rising trends toward finding solutions for global warming. People turn to focus on environmentally friendly products that reduce waste and pollution, so many products with carbon labels, i.e., carbon footprint certificates that feature lower carbon footprints have been launched. Many importing countries are switching to use such measures as non-tariff barriers (NTBs.) Meanwhile, many consumers, especially in developed countries, are considering environmental factors more commonly before making decisions to buy any products.
As a result, Thailand, as a production factor or primary producer that has high competitive potential in bioplastics globally, also finds it necessary to adjust quickly and brace for the changing situation. Such action will help promote better sales performance in high potential markets in coming years, such as markets where they are sensitive to sanitary concerns, markets focusing to reduced carbon footprints and niche markets focusing on environmentally friendly packaging designs. To penetrate such markets, businesses should develop unique and attractive packaging design to differentiate their products from rivals. In addition, we need to manage raw material inventories to brace for shortages that may arise in the future. Raw material risk management should be conducted along with the development of marketing strategies to meet the diverse needs of consumers. The above efforts will not only add value to products and increase their export market appeal, but also benefit other relevant businesses linked with bioplastics products.
Actually, cooperation between the government and private sectors is essential to promoting the development of this industry. However, advanced technology and high investment are limitations to bioplastics industry development, so we need to carefully study all the relevant details. If we can overcome and manage these obstacles, our bioplastics industry will surely grow healthily in the future.

Industry