Thai packaging market to grow at 2.7% CAGR by 2024
Rigid plastics and paper & board packaging expected to lead growth.
The packaging sector in Thailand is expected to reach 74.5 billion units by 2024 at a compound annual growth rate (CAGR) of 2.7% for the forecast period of 2019-2024, according to new GlobalData report, ‘Thailand Packaging Industry – Trends and Opportunities’.
The report revealed that the sector is majorly driven by growth in the rigid plastics packaging, which is forecast to register the fastest volume CAGR of 3.0% during 2019–2024. The category is closely followed by paper & board packaging, which is expected to record a CAGR of 2.8% during the next five years.
“Rising consumer interest on product quality made transparency a critical factor in purchasing decisions of various consumer products. Consumers are showing more curiosity to know how the actual product looks like, prompting the manufacturers to offer flexible packaging formats which allow a see-through packaging option so as to enhance product visibility and offer consumer satisfaction,” said Anchal Bisht, Consumer Analyst at GlobalData.
Food industry characterized the most use of packaging in Thailand and accounted for 44.9% market share. It was followed by non-alcoholic beverages industry with share at 38.6%, respectively.
Rigid plastics was the most consumed pack material in Thailand packaging industry that accounted for a market share of 35.8% in 2019. It is expected to reach 36.3% by 2024. Glass and flexible packaging were the other popular pack materials.
Non-alcoholic beverages industry was leading in terms of usage of rigid plastics with a share of 65.4% in 2019. It was followed by food industry which accounted for a share of 31.8% in the same year.
“Growing plastic waste has resulted in the growing demand for sustainable measures so as to curb the volume of waste generated. With the growing awareness of plastic-free packaging among consumers, manufacturers are using green packaging initiatives and other eco-friendly measures to gain the popularity among the Thai consumers which will drive innovations in the sector,” Anchal concluded.