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18 Nov 2022

Industry

Trend of eco-friendly plastics pressures Thailand’s plastic resin industry…Operators accelerate their adjustments but still face multiple challenges (Current Issue No.3363)

คะแนนเฉลี่ย

     Amid the global green trends, many countries have imposed environmental measures and have increasingly started to use eco-friendly plastics (recycled plastics / bioplastics) to replace fossil-based plastics. Such actions have affected Thailand’s plastic resin industry, which still relies mainly on sales of fossil-based plastic pellets. Even though some Thai operators have begun to shift to investment in production of eco-friendly plastic resins, their adjustments continue to lag behind changes in the global market.
    Looking ahead, KResearch views that Thai manufacturers of eco-friendly plastic pellets may increasingly shift to the domestic food and beverage packaging market, to capitalize on the government’s revised standards for certain uses of recycled plastics. However, tighter production capacities and supplies of raw materials would put pressure on sales growth of Thai eco-friendly plastic resins in the short term.
    KResearch projects that due to the transition to eco-friendly plastic pellets and the global economic slowdown, the proportion of Thai exports of fossil-based plastic pellets in 2023 may drop to 95.6 percent, from the figure of 96.2 percent recorded in 2020, contrary to the rise in exports of eco-friendly plastic resins despite the challenge of tight supply.

Industry