25 Jun 2021
Posted in Packaging
Thailand packaging market to reach 67.6 billion units in 2025, reveals GlobalData
The packaging sector in Thailand is expected to reach 67.6 billion units in 2025, registering a compound annual growth rate (CAGR) of 1.5% during 2020-2025, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Thailand Packaging Industry – Market Assessment, Key Trends and Opportunities to 2025’ reveals that the sector is majorly driven by growth in the rigid plastics packaging, which is forecast to register the fastest volume CAGR of 2.5% during 2020-2025. Rigid plastics was the most consumed pack material in Thailand packaging industry. It accounted for a market share of 35.4% in 2020 and is forecast to reach a share of 37.1% by 2025. It is followed by flexible packaging, which is expected to record a CAGR of 1.9% over the forecast period.
Monika Bargla, Consumer Analyst at GlobalData, says: “Growing economy and rising urbanization are driving the packaging market in Thailand. Furthermore, an increase in the number of small and single person households is spurring the demand for smaller and convenient pack sizes in Thailand. Meanwhile, brands are launching premium and limited-edition packaging to appeal to consumers looking for an indulgent consumption experience as well as to boost sales.”
Food industry was the largest user of pack materials in Thailand and accounted for a market share of 45.7% in 2020. It was followed by non-alcoholic beverages industry with a share of 39.7% in the same year.
Non-alcoholic beverages industry was leading in terms of usage of rigid plastics with a share of 71% in 2020. It was followed by food industry which accounted for a share of 26% in the same year.
Ms. Monika concludes: “With growing concerns about the heaps of plastic waste ending up in oceans and landfills, consumers are looking for eco-friendly products with sustainably sourced ingredients. As a result, manufacturers are using green packaging initiatives and turning towards package types that are recyclable, plastic free, biodegradable, or made from renewable sources to appeal to these eco-conscious consumers.”