Market Trends of Thailand Folding Carton Packaging Industry
This section covers the major market trends shaping the Thailand Folding Carton Packaging Market according to our research experts:
Strong Demand Arising from the Sustainability Goals of the E-commerce Sector to Drive the Market
Increased demand for packing boards for online sales, tissue papers, and specialty papers due to the COVID-19 pandemic is likely to promote the growth of the paperboard packaging industry in the country.
Since the beginning of the pandemic, e-commerce sales have grown by more than two years. Meanwhile, the corrugated business is struggling to keep up. Paper mills operate at full capacity, and some producers limit orders and outsource to smaller firms. Consumers are increasingly choosing e-commerce over brick-and-mortar establishments. Thus, the demand is expected to continue to rise.
According to the Electronic Transactions Development Agency (ETDA), the B2B and B2G e-commerce market value in the country significantly increased in 2021, registering a growth of 29.7% and 15.5% Y-o-Y. The strong demand from B2B e-commerce, coupled with the pro-sustainable goals set by the country, is pushing the demand for folding cartons in the country.
As the demand for e-commerce grows, so does the packaging challenge. Sustainable packaging is an unprecedented priority for both brands and consumers. Implementing eco-packages in brand operations is no longer an option but a necessity.
The growing adoption of smartphones in the country directly correlates with the e-commerce value since most citizens prefer online shopping through mobile phones rather than laptops or PCs.
According to a survey conducted by the National Statistical Office (Thailand) in 2021, around 99.9% of respondents aged between 15 to 24 stated that they are using smartphones. Such figures drive the demand for e-commerce shopping, indirectly influencing the growth of folding carton packaging in the country.
Food and Beverages Vertical to Hold the Maximum Market Share
The increase in incomes and increased spending on food by the growing middle-class population in the country has been driving the growth of the food and beverage industry. As the greater share of the population lives in Bangkok's sprawling suburbs, the demand for convenient packaged food options is growing. Moreover, rapid urbanization increased the demand for processed foods and ready-to-eat meals in the country. Ready-to-eat meal products are among the top adopters of cartons as the secondary form of packaging, fueling the market's growth.
Additionally, the dairy packaging sector is increasing the demand for folding carton packaging. Liquid cartons are the most common type of paperboard packaging used for dairy products. Milk consumption in the country is likely to increase as consumers actively switch from soft drinks to healthy dairy alternatives.
In recent years, Tetra Pak, a food processing and packaging solutions company, and mMilk, launched a tetra top carton bottle for the first time in Thailand. mMilk is well known in the country for its lactose-free milk. The milk products, such as A2+ and Green Milk, were sold in Thailand in tetra-top carton bottles.
Moreover, these carton bottles are recyclable and bear the FSC (Forest Stewardship Council) label, which guarantees that the paper carton comes from responsibly managed forests.
TETRA PAK Thailand, a food processing and packaging services company, in collaboration with the Forest Stewardship Council (FSC) and the WWF Thailand, is encouraging Thai consumers to look for the Tetra Pak logo on beverage cartons. The company stated that the consumers would get carton products made from environmentally sound materials - paper sourced from responsibly managed forests that will also support local farming.
