The “Green business trend" has prompted many countries to introduce campaigns to reduce the use of plastics which are not easily degradable, especially single-use plastics for food and beverage packaging. Therefore, renewable materials, namely bioplastics have seen a rapid growth with an average compound growth rate (CAGR) of 30 percent versus an annual growth rate of conventional plastics of only 3 percent. KResearch views that polylatic acid (PLA) pellets will substitute for the use of plastics derived from petro-based polymers in the production of food and beverages packaging and the bioplastic market will be expanding from Europe and the US to the Asian region, driven by the movement to reduce the use of plastics and to change consumer behavior.
However, the use of bioplastics in Thailand has not been previously widespread due to limitations in terms of Thai producers' ability to access high technology for bioplastic resin manufacturing and the consumers' lack of awareness about the impact from plastic waste on the environment. Nonetheless, advanced technology is now widely available, and consumers have realized the severity of the environment issue. Moreover, agricultural raw materials have become sufficient for bioplastic production. At the same time, thanks to its strength, Thailand's plastic industry is able to apply new technology supported by the government's green policy. The producers can also form strategic partnerships with the owners of technology and the world's market leaders to pave the way for Thai producers to enter the world market.
KResearch posits that Thai business operators should focus on the plastic packaging for modern retailers in China, Japan, and the US, which are the traditional customers of the common plastics from Thailand. In the future, there are business opportunities to link with related industries with higher value with Thailand serving as a manufacturing base for exports such as electronics industry, automotive and medical equipment, etc.