Thailand Plastics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Thailand Plastics Market is segmented by Type (Traditional Plastics, Engineering Plastics, and Bioplastics) and Application (Packaging, Electrical and Electronics, Building and Construction, Automotive and Transportation, Furniture and Bedding, and Other Applications).

Market Snapshot

Thailand Plastics Market Bar Graph
Study Period: 2016 - 2026
Base Year: 2021
CAGR: >4 %
Thailand Plastics Market Top Companies

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Market Overview

The Thai plastics market is projected to register a CAGR of over 5% during the forecast period (2021-2026).

The outbreak of coronavirus pandemic had an adverse impact on the plastics market for application in electrical and electronics, building and construction, automotive and transportation, etc., due to lockdown, temporary shutdowns, and halted production. However, the pandemic has unintentionally benefited plastics manufacturers in Thailand, as the government has advised the country to take all necessary hygiene protection. Moreover, e-commerce has also augmented the demand for plastic packaging in the country due to the COVID-19 outbreak, as online delivery has been on a rapid rise to avoid public gatherings. For instance, TPBI, Thailand's major plastic maker, announced that the company had observed growing revenues from plastic bags and e-commerce packaging since March 2020. Additionally, BG Packaging has planned a three-year expansion in Thailand through mergers and acquisitions. The company is planning for sustainable growth to become a one-stop service by offering the full package of caps, bottles, and labels, among others. Furthermore, due to the spread of COVID-19, Thailand's use of disposable plastics, which had been declining, is increasing again as bags for groceries and garbage and plastic food packaging and containers are increasing in demand and thus benefited the plastic market.

  • In the medium term, the major factors driving the market growth are the rapid use of plastic in building and construction and rising demand from food and beverage packaging.
  • On the flip side, stringent government regulations resulting in the plastic ban are expected to hinder the market growth during the forecast period.
  • Increasing usage of biodegradable plastics is expected to act as an opportunity over the forecast timeline.

Scope of the Report

The raw materials used to produce plastics include products such as cellulose, coal, natural gas, salt, crude oil, etc. The Thai plastics market is segmented by type and application. By type, the market is segmented into traditional plastics (polyethylene, polypropylene, polystyrene, polyvinylchloride), engineering plastics (polyethylene terephthalate, polyamides, polycarbonates, styrene copolymers, polybutylene terephthalate, polymethyl methacrylate, and other engineering plastics), and bioplastics. By application, the market is segmented into packaging, electrical and electronics, building and construction, automotive and transportation, furniture and bedding, and other applications. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).

Type
Traditional Plastics
Polyethylene
Polypropylene
Polystyrene
Polyvinyl Chloride
Engineering Plastics
Polyethylene Terephthalate (PET)
Polyamides
Polycarbonates
Styrene Copolymers (ABS and SAN)
Polybutylene Terephthalate (PBT)
Polymethyl Methacrylate (PMMA)
Other Engineering Plastics
Bioplastics
Application
Packaging
Electrical and Electronics
Building and Construction
Automotive and Transportation
Furniture and Bedding
Other Applications

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Key Market Trends

Increasing Demand for PET Among Other Engineering Plastics

  • Polyethylene terephthalate (PET) is a thermoplastic polyester engineering resin. PET resins are known for their excellent melt flow characteristics, close molding tolerances, and high productivity from multi-cavity molds. Because its mechanical and electrical properties are so broad, PET is often used to replace metals in motor housings, switches, sensors, and other electrical applications.
  • PET and polyolefins are the most widely used materials in the plastic packaging industry. Some of the major properties of PET as a packaging material are recyclability, strength, and versatility, which drive the demand for these products.
  • These products mainly include take-out containers, frozen foods, carbonated drinks and juices, ketchup, bottled water, jars, and baked goods containers. They are also used in the food industry for clamshells, deli containers, as well as microwave food trays.
  • PET also has great barrier properties that protect and preserve the contents of the product. PET keeps the fizz in carbonated soft drinks, the vitamins in juices, and the color in ketchup intact. In other words, it protects products and keeps them on the shelves and out of the rubbish bin.
  • Thailand's Indorama Ventures, the world's top producer of PET, announced to spend USD 1.5 billion to triple its plastics recycling operations, an ambitious goal backed by growing demand among green-minded beverage producers. Indorama has been acquiring companies that recycle polyethylene terephthalate in recent years. It aims to expand its recycling capacity to 750,000 tons a year by 2025 from the current roughly 250,000 tons. The goal is to have recycled materials account for around 20% of the ~4 million tons of PET Indorama supplies to the beverage industry a year.
  • Owing to the above mentioned factors, the demand for PET is expected to increase in the country over the forecast period.
Thailand Plastics Market Share

Packaging Industry to Dominate the Market

  • Packaging accounts for the largest application segment in the Thai plastics market. The prime reasons for the growing application of plastics in the packaging segment include better wear and chemical resistance, ease of molding, recyclability, puncture resistance, and high mechanical strength.
  • The most commonly used plastics in the packaging industry include:
  • High Density Polyethylene (HDPE): It is the most common type of plastic used in the manufacturing of bottles and containers. HDPE provides good chemical resistance and is also used for packaging many household and industrial chemicals, including detergents and bleach.
  • Low Density Polyethylene (LDPE): It is used for packaging applications due to its toughness, flexibility, and relative transparency. Its applications include flexible lids, bottles, and other wire and cable applications.
  • Polyethylene Terephthalate (PET): It is clear and tough and possesses good gas and moisture barrier properties. It is most commonly used in beverage bottles and other injection molded consumer product containers.
  • Polypropylene (PP): It possesses characteristics such as good chemical resistance and has a high melting point that makes it a good choice for hot-fill liquids. It is used for flexible and rigid packaging applications and other large molded parts that are required for automotive and consumer products.
  • Polystyrene (PS): It is a versatile plastic that can be both rigid and foamed. Its typical application includes protective packaging, foodservice packaging, bottles, and food containers.
  • The packaging industry has gained momentum after the COVID-19 outbreak. For instance, SGC Chemicals Co. Ltd, a Thai manufacturer and supplier of the full range of petrochemical products, saw a 33% year-on-year increase in sales of packaging materials and containers in the first quarter of 2020, owing to increased demand for plastic containers and bags for food deliveries to stay-at-home customers.
  • Owing to the aforementioned factors, the demand for plastics for packaging application is expected to increase in the country over the forecast period.
Thailand Plastics Market Growth By Region

Competitive Landscape

The Thai plastics market is partially consolidated in nature. The major companies include Indorama Ventures Public Company Limited, SCG Chemicals Co. Ltd, INEOS Styrolution Group GmbH, COVESTRO AG, and THAI PLASTIC INDUSTRIES CO. LTD, among others.

Recent Developments

  • In October 2020, COVESTRO announced a new production line for polycarbonate films in the Map Ta Phut Industrial Estate in Thailand. With the new capacity, the company aims to meet the rapidly growing demand in the Asia-Pacific region and to strengthen its own position as a market leader in this field.
  • In January 2020, Indorama Ventures Public Company Limited (IVL) completed its acquisition of Huntsman’s world-class integrated oxides and derivative businesses. The transaction value translates to an EV/EBITDA of ~5.7x and is expected to add substantial synergies to Indorama’s existing 450kta Ethane/Propane Cracker and 550kta EO/EG. IVL will also be integrated from Ethane to PET as well as the high-margin EO and PO derivatives businesses.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Rapid Use of Plastic in Building and Construction

      2. 4.1.2 Rising Demand from Food and Beverage Packaging

      3. 4.1.3 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 Stringent Government Regulations Resulting in Plastic Ban

      2. 4.2.2 Impact of the COVID-19 Pandemic

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Traditional Plastics

        1. 5.1.1.1 Polyethylene

        2. 5.1.1.2 Polypropylene

        3. 5.1.1.3 Polystyrene

        4. 5.1.1.4 Polyvinyl Chloride

      2. 5.1.2 Engineering Plastics

        1. 5.1.2.1 Polyethylene Terephthalate (PET)

        2. 5.1.2.2 Polyamides

        3. 5.1.2.3 Polycarbonates

        4. 5.1.2.4 Styrene Copolymers (ABS and SAN)

        5. 5.1.2.5 Polybutylene Terephthalate (PBT)

        6. 5.1.2.6 Polymethyl Methacrylate (PMMA)

        7. 5.1.2.7 Other Engineering Plastics

      3. 5.1.3 Bioplastics

    2. 5.2 Application

      1. 5.2.1 Packaging

      2. 5.2.2 Electrical and Electronics

      3. 5.2.3 Building and Construction

      4. 5.2.4 Automotive and Transportation

      5. 5.2.5 Furniture and Bedding

      6. 5.2.6 Other Applications

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share/ Ranking Analysis**

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Covestro AG

      2. 6.4.2 HMC Polymers Thailand

      3. 6.4.3 Indorama Ventures Public Company Limited

      4. 6.4.4 INEOS Styrolution Group GmbH

      5. 6.4.5 PTT Global Chemical Public Company Limited

      6. 6.4.6 SCG Chemicals Co. Ltd

      7. 6.4.7 Thai Plastic Industries Co. Ltd

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Thailand Plastics Market market is studied from 2016 - 2026.

The Thailand Plastics Market is growing at a CAGR of >4% over the next 5 years.

Indorama Ventures Public Company Limited, SCG Chemicals Co., Ltd., INEOS Styrolution Group GmbH, THAI PLASTIC INDUSTRIES CO., LTD., COVESTRO AG are the major companies operating in Thailand Plastics Market.

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