Market Trends of Thailand Folding Cartons and Corrugated Packaging Industry
This section covers the major market trends shaping the Thailand Folding Cartons & Corrugated Packaging Market according to our research experts:
Increasing Packaging Capacity Due to Rising E-commerce Drives the Market Growth
- Increased demand for packing boards for online sales, tissue papers, and specialty papers, as a result of the COVID-19 pandemic, promoted the paperboard packaging industry growth in the country.
- Since the pandemic began, e-commerce sales have grown by more than two years. Meanwhile, the corrugated business needs help to keep up. Paper mills operate at total capacity; 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.
- The e-commerce industry emerged as a significant player in recent years, with Amazon using corrugated board boxes for the principal packaging and relying on plastic packaging for individual items. The increasing concerns of Thai people associated with packaging waste are likely to compel the government to ring regulations that prompt the citizens to adopt environment-friendly options, such as folding cartons or corrugated boxes, as a viable choice for packaging.
- The growing smartphone adoption 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 Tech Asia, the e-commerce market's estimated size in Thailand would amount to USD 24 billion in the next two years.
- According to a survey conducted by the National Statistical Office (Thailand) in the previous year, 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 folding carton packaging growth in the country.
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Food and Beverage Segment is Expected to Hold Major Market Share
- The increase in incomes and increased spending on food by the growing middle-class population in the country is driving the food and beverage industry growth. As a more significant 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. According to Global Organic Trade Guide, the consumption value of organic packaged food and beverages in Thailand is estimated to be approximately USD 30.2 million in the current year.
- Additionally, there is an increasing demand for folding carton packaging from the dairy packaging sector. 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 mMilk products, such as A2+ and Green Milk, were to be sold in Thailand in tetra-top carton bottles.
- TETRA PAK Thailand, a food processing and packaging services company, in collaboration with the Forest Stewardship Council (FSC) and 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 would also support local farming.
