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Industry Outlook Analysis

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)

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 s... Read more

30 Aug 2022

Industry

Exporters urged to pay close attention to the US Clean Competition Act and carbon taxes (Current Issue No.3341)

วุฒิสภาของสหรัฐได้เสนอร่างกฎหมาย Clean Competition Act ซึ่งประกอบด้วยมาตรการกำหนดการกลไกราคาคาร์บอน (Carbon Pricing) สำหรับสินค้าที่ผลิตในประเทศ และมาตรการปรับราคาคาร์บอนก่อนข้ามพรมแดน (Carbon Border Adjustment Mechanism: US-CBAM) สำหรับสินค้านำเข้า โดยกลุ่มอุตสาหกรรมเป้าหมาย ได้แก่ ผลิตและกลั่นปิโต... Read more

29 Aug 2022

Industry

Labour-intensive industries: Profits projected to decline by 5-15 percent due to minimum wage hike (Current Issue No.3340)

KResearch views that an increase in the average daily minimum wage by 5 percent starting October 1, 2022 will affect industrial costs in the last quarter of this year and into next year. This may lead to an average cost increase of around 0.5 percent and a decrease in operating profit by an average ... Read more

27 Jul 2022

Industry

Results of behavioral survey and consumers’ views on problems related to environmental sustainability and their tendency towards ESG investment (Current Issue No.3337)

Results of behavioral survey and consumers’ views on problems related to environmental sustainability and their tendency towards ESG investment (Current Issue No.3337)... Read more

22 Jul 2022

Industry

BEV market attractive to potential players with readiness in the short term, though challenges remain in the long term due to ongoing industry developments (Current Issue No.3334)

Presently, competition in the domestic car market, particularly the BEV market, has changed significantly. Thailand has undertaken greater efforts of investment to retain its domestic automotive industry by providing extensive support from this year through to 2025. ... Read more

7 Apr 2022

Industry

Solar rooftops in business sector set to grow over 54% in 2022, supported by rising electricity costs (Current Issue No.3320)

Amid rising electricity costs, driven by elevated fossil fuel prices as a result of the Russia-Ukraine crisis, bright prospects are being seen in solar rooftop investment in the business sector as entrepreneurs have to save on electricity costs while also responding to the clean energy trend even as... Read more

1 Apr 2022

Industry

Sales of Chinese BEVs set to exceed 10,000 units in 2022 amid gloomy domestic car market (Current Issue No.3319)

New supportive measures introduced by the government have substantially helped bolster the Thai BEV market. Intense competition has quickly been seen in the BEV market as Chinese carmakers capitalized on the timing, when mainstream carmakers were unprepared, to seize their share of the BEV market vi... Read more

28 Mar 2022

Industry

Russia-Ukraine Crisis to Push Production Costs in Thai Industrial Sector Higher by at least THB80 Billion (Current Issue No.3315)

The Thai industrial sector, which is heavily dependent on raw material imports, is set to experience higher production costs as global raw material prices are projected to stay at elevated levels during most of the remainder of 2022 if the Russia-Ukraine war is prolonged and sanctions against Russ... Read more

17 Mar 2022

Industry

Domestic F&B Spending, 2022: Growing 1.9-2.7% in line with Their Price Increases (Current Issue No.3312)

KResearch expects that food and beverage (F&B) spending in the country during 2022 will reach THB2.57-2.59 trillion, an increase of 1.9-2.7 percent, against the 2.5 percent growth reported for 2021. The increase will be supported by a 3.1 percent rise in their prices in line with elevated processing... Read more

31 Jan 2022

Industry

Pharmaceutical Industry, 2022: Growing 3-5% Despite Improved COVID-19 Situation (Current Issue No.3304)

KResearch is of the view that despite improving signs seen in the COVID-19 situation, which may cause demand for related medicines to decline from the preceding year, existing local patients and some segments of international patients, who have common diseases, are expected to gradually resume medic... Read more

30 Dec 2021

Industry

Thailand’s BEV measures may boost sales to 25,000 units in 2025, though lack of electric vehicle charging points still presents major obstacle to greater adoption (Current Issue No.3297)

The government will soon announce measures to boost domestic demand for battery electric vehicles (BEVs), with the aim of maintaining their prices at a level closer to those of petrol-driven cars. KResearch views that car manufacturers who would benefit from the initiatives may be limited to those e... Read more

23 Dec 2021

Industry

Metaverse: Applications in the manufacturing industry to increase supply chain efficiency (Current Issue No.3294)

In recent times, the concept of the ‘metaverse’ has been attracting more attention worldwide. Operators planning to utilize the metaverse in their businesses are primarily focused on seeking new forms of business opportunities in the consumer market, whether it is a new retail sales channel that cre... Read more

30 Nov 2021

Industry

Thai Pet Food Exports Projected to Grow 20% in 2022, but Accelerated Branding to Tap Premium Segment Needed (Current Issue No.3287)

KResearch is of the view that Thai pet food exports will continue to enjoy bright prospects ahead. For 2022, we expect that the value of Thai pet food shipments will reach roughly USD2.4 billion, an increase of 20 percent, which would be a slight decline from the 23 percent growth projected for 2021... Read more

18 Nov 2021

Industry

Thai motorcycle market remains stagnant with projected growth of merely 1% in 2021... electric motorcycles see expansion with entry of new operators though they may face difficulties (Current Issue No.3286)

This year, Thailand’s motorcycle market has been seriously affected by the COVID-19 outbreak, diminishing consumers’ purchasing power. As the principal buyers, grassroots customers have been particularly affected. For the entirety of 2021, KResearch projects that total motorcycle sales may be aroun... Read more

7 Oct 2021

Industry

Covid-19 Temporarily Bolsters Thai Preowned Car Prices ... Eyeing Online Used Car Platform Startups (Current Issue No.3276)

Although the COVID-19 pandemic has affected new car production and sales, it has created two new developments in the second-hand car markets, both at home and abroad: 1) rising prices of used cars, and 2) the use of online channels for buying and selling preowned vehicles. However, prices of used ca... Read more

6 Oct 2021

Industry

Thailand’s smart factory solutions market… set to grow over 10 percent in 2021, amid gradual economic recovery (Current Issue No.3275)

Amid the ongoing COVID-19 crisis, smart factory solutions (SFS) service has tended to grow at an accelerated pace, as opposed to the gradual growth seen during the pre-pandemic period. This has been boosted by demand from large companies forced to make adjustments to lessen their dependence on manua... Read more

13 Sep 2021

Industry

Mooncake Market, 2021: Turnover Set to Shrink 5.7% as Consumer Purchasing Power Remains Weak (Current Issue No.3267)

The Mid-Autumn Festival, which falls on September 21, 2021, presents another challenging year for the mooncake business due to the protracted COVID-19 pandemic, which is much worse than the previous year. As a result, consumer purchasing power remains weak, and this may affect the decision to purcha... Read more

23 Aug 2021

Industry

Increased Investment Risk Seen in Thai Tire Industry after US Imposed AD Duties, but 2021 Tire Exports to the US Projected to Grow over 2.6% (Current Issue No.3258)

Following more than a year of an anti-dumping investigation into tires imported from Thailand, the US has finally ruled that passenger vehicle and light truck tires imported from Thailand are subject to anti-dumping (AD) duties. As a result, prices of such Thai tires in the US have risen, although t... Read more

9 Aug 2021

Industry

Turnover of Alternative Proteins Derived from Food Innovations Set to Reach THB4.5 Billion in 2021 amid Numerous Challenges (Current Issue No.3254)

Alternative proteins, which are among food techs, have emerged as one of the top consumer trends and thrived over the past few years. KResearch is of the view that the alternative protein market in Thailand is set to grow in the future as such products are now available through numerous channels whi... Read more

5 Aug 2021

Industry

Thai Polylactic Acid Exports Set to Grow at least 38% in 2021, but May Pressured by Tighter Supply in 2022 (Current Issue No.3251)

Amid the current global green trends, Thailand’s polylactic acid (PLA) exports have gradually increased at a faster rate than growth in global PLA demand over the years. The rise is primarily attributable to the fact that Thai PLA producers have been able to bolster their annual manufacturing capaci... Read more

29 Jul 2021

Industry

Thai auto market could see sales drop to 720,000 due to prolonged COVID-19 outbreak, while exports may offer little support to production (Current Issue No.3249)

With the most recent wave of the COVID-19 pandemic, the Delta variant has established itself as a major global threat, having spurred a surge in the number of cases across many countries, including Thailand. It may also impact economies worldwide over the long term if the outbreak is not successfull... Read more

9 Jul 2021

Industry

Turnover in 2021 Snack Business Projected to Shrink 4.0% amid Eroding Consumer Purchasing Power (Current Issue No.3242)

KResearch is of the view that the prolonged COVID-19 pandemic, which recently prompted the government to reimpose lockdowns and curfews in high-risk zones, has caused consumers to embrace frugality or thrift. As snacks are generally perceived as non-essential products, their consumption rate is set ... Read more

6 Jul 2021

Industry

EV contract manufacturing – new business model for the EV industry amid challenge of building a strong customer base (Current Issue No.3239)

The technological transition to electric vehicles (EVs) on a global scale has led to the emergence of a new business model that differs from the model currently adopted by mainstream automakers. Such model comes in the form of EV contract manufacturing (EVCM) on an open EV platform which allows new ... Read more

25 Jun 2021

Industry

Global Economic Recovery Set to Support 2021 Thai PCB Export Growth to over 20% (Current Issue No.3232)

The world’s economic recovery from the COVID-19 pandemic has led KReseach to assess that Thai printed circuit board shipments will grow roughly 20.1-24.1 percent in 2021, or equivalent to USD1,573-1,626 million. The increase is expected to be bolstered by strong demand for products in the ICT catego... Read more

24 Jun 2021

Industry

EU Carbon Border Adjustment Mechanism (CBA) Presents Another Challenge for Thai Exports (Current Issue No.3231)

In 2023, it is expected that the European Union (EU) will use a Carbon Border Adjustment (CBA) mechanism for goods and services that are imported from third non-EU countries as part of the European Green Deal – an ambitious package of measures aimed at preserving Europe’s natural environment. During... Read more

28 May 2021

Industry

Auto exports may reach 890,000-950,000 units in 2021; entry of Chinese carmakers set to increase export opportunities over the next three years (Current Issue No.3227)

KResearch has assessed that Thai auto exports in 2021 should improve from the previous year, thanks in large part to the economic recovery of major trading partners in Oceania and Asia. At the same time, an increasing number of Japanese car manufacturers are using Thailand as a production base for e... Read more

7 May 2021

Industry

Post-COVID Supply Chain Realignment and Change in Global Investment Flows: Thailand Projected to Benefit USD1.1-1.4 Billion from Increasing FDI in Existing Industries (Current Issue No.3218)

A new paradigm in global investment flows is being seen as the COVID-19 pandemic has triggered massive supply chain adjustments. Realizing the fragility of global supply chains and the intensifying trade and technology war between the US and China, multi-national companies have begun to diversify ri... Read more

29 Apr 2021

Industry

Chip shortage 2021: Thai vehicle production falls short by 40,000 units, while car manufacturers implement supply-side structural reform for automotive chips to support long-term demand (Current Issue No.3214)

Since late 2020, the global automotive industry has been experiencing a microprocessor chip shortage. The principal reason for this crisis is the fragile structure of the automotive chip manufacturing industry. Demand and supply volatility for these chips has been triggered by multiple factors, incl... Read more

29 Apr 2021

Industry

2021 Domestic Car Sales to Shrink 1.5% due to COVID-19, but Higher Exports to Boost Car Production to at least 1.8 Million Units (Current Issue No.3215)

Although the government did not announce lockdown restrictions to cope with the latest wave of COVID-19, the highest number of daily infections since the start of the pandemic here has not only triggered concern among Thai consumers about their future income, but also affected overall domestic consu... Read more

5 Apr 2021

Industry

Value of Enterprise HDD Exports Set to Grow 2-5% in 2021, Driven by Cloud Computing Trends (Current Issue No.3208)

Thai HDD exports overall are projected to record steady contraction in terms of volume and value during 2021, pressured by disappointing consumer HDD shipments, resulting from a transition towards the SSD technology. It is projected that the volume and value of consumer HDD shipments will shrink wit... Read more

2 Apr 2021

Industry

National EV Strategic Plan: A Stepping Stone for the Thai Automotive Industry, but Markets and Integrated Supply Chain are Prerequisites (Current Issue No.3206)

On March 24, 2021, the National Electric Vehicle Policy Committee set a new target for Thailand’s electric vehicle production, with the objective of promoting the country to become one of the world’s important production bases for zero-emission vehicles (ZEVs). Under this challenging target, 100 per... Read more

31 Mar 2021

Industry

Thai Lithium-ion Battery Industry Set to Thrive in line with xEVs, Though Thailand Needs to Upgrade its Position from being only an Assembly Base (Current Issue No.3203)

The Thai lithium-ion battery industry is set to post steady growth ahead, thanks to increased investment from mainstream auto makers to accommodate growth in the production of their electric vehicles (xEVs) in Thailand and from entrepreneurs in the Thai energy industry, who have seen business opport... Read more

16 Mar 2021

Industry

Thailand’s xEV market to grow by at least 69 percent in 2021; share of domestic xEV sales to account for more than half of total automobile sales in less than 10 years (Current Issue No.3196)

KResearch projects that the sales of Hybrid Electric Vehicles (HEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) in 2021 will likely amount to 48,000-50,000 units, or growth of 63-70 percent YoY. Such innovative vehicles are set to become the standard models for numerous car brands, providing the f... Read more

12 Mar 2021

Industry

Consumers Are Willing to Pay More for Eco-Friendly Products and Services if Prices Do Not Exceed 20% of Regular Prices (Current Issue No.3194)

KResearch is of the view that although Thais have increasingly attached importance to environmental problems, their decision to purchase eco-friendly products and services may depend on many factors. These include whether such products and services help address environmental issues, or not, and thei... Read more

25 Feb 2021

Industry

Thai Chip Packaging Business, 2021: Growing 5.2%, Thanks to 5G Adoption and Recovery in Global Automotive Market (Current Issue No.3193)

The COVID-19 pandemic has significantly bolstered global demand for microchips. This is because it has triggered changes in the business sector and prompted consumers to increasingly use digital technology in their businesses and daily life while also accelerating the transition towards 5G technolog... Read more