Market Trends of Thailand Plastic Packaging Films Industry
Food segment to Hold Significant Market Share
- Thailand's food packaging sector is expanding, propelled by a surging worldwide appetite for packaged foods and the burgeoning food delivery segment. Notably, sustainability and cutting-edge technologies, including intelligent and innovative packaging, are gaining prominence as pivotal trends. Furthermore, government incentives have bolstered the creation and production of tech-enhanced, value-added packaging solutions.
- Thailand's food packaging sector is witnessing rapid growth, especially in the context of frozen and processed foods, which presents significant future growth prospects. Globally, film packaging has emerged as one of the fastest-growing industries. Notably, heightened investments and innovations from companies focusing on packaging solutions, spanning dry foods, frozen items, sauces, and condiments, have further fueled the demand for plastic film packaging.
- Thailand's consumers gravitate towards supermarkets and grocery stores, signaling a clear preference for convenient shopping. With these outlets becoming go-to destinations for daily purchases, the demand for packaging is shifting towards solutions prioritizing ease of use, portability, and storage convenience. This trend is driven by the busy lifestyles of modern consumers who seek quick and efficient shopping experiences. In 2023, Thailand's packaged food sales hit a noteworthy USD 15.95 billion, steadily climbing from USD 14.37 billion in 2021. This growth reflects the increasing reliance on packaged foods, which offer longer shelf life and ease of preparation, aligning with evolving consumer preferences.
- Further, on-the-go consumption, smaller households, and a growing preference for convenience pave the way for modern lifestyles in Thailand. In response, plastic film packaging has emerged as a solution, offering lightweight, portable, and resealable options that align with these dynamics. This type of packaging is particularly advantageous for its ability to preserve freshness and extend shelf life, which is crucial for busy consumers. Single-serve and portion-controlled formats have gained traction, catering to consumers who prioritize convenience and precise portions. Additionally, the versatility of plastic film packaging allows for innovative designs and branding opportunities, making it a popular choice among manufacturers aiming to attract and retain customers.
Understand The Key Trends Shaping This Market
Download PDF
Polythene Segment Expected to Hold Significant Share in the Market
- The plastic film packaging industry is witnessing rapid growth, especially in segments like frozen and processed foods, with promising prospects. Notably, pouch packaging has emerged as one of the fastest-growing segments for the export of food products from Thailand. Companies, particularly those focusing on packaging solutions for dry foods, frozen items, sauces, and condiments, are increasing the demand for plastic film packaging through increased investments and innovative approaches.
- Polyethylene (PE) has emerged as the leading plastic material in Thailand, lauded for its versatile physical properties. Its cost-effective production distinguishes it from its plastic counterparts. Notably, PE stands out with the lowest softening point among primary packaging plastics, leading to reduced energy consumption. LDPE and LLDPE, variants of PE, are found to be extensively used in flexible packaging. Widely utilized in crafting plastic bags, films, and even pouches, polyethylene's popularity stems from its lightweight composition, partial crystalline structure, and critical attributes like chemical resistance, minimal moisture absorption, and effective sound insulation.
- Also, the growth of the frozen food industry across various regions is anticipated to impact the market positively. Rising demand for Ready-to-Eat (RTE) food, convenience of use, and cost-effectiveness of plastic films for export are primary factors supporting the market's growth in Thailand. The Value of Food Products Exported from Thailand was USD 30.15 billion in 2021, which increased to USD 38.42 billion in 2023, showing the growing trend of export and requirement of plastic films for packaging. This growth is further supported by advancements in packaging technology, increased consumer preference for packaged foods, and the expansion of retail chains, which collectively drive the demand for plastic films in the food export sector.
- Thailand has witnessed a notable uptick in beef, pork, poultry, and seafood consumption and production in recent years. This surge is underpinned by a dual need: appealing packaging for consumers and ensuring product safety. Consequently, packaging solutions for meat and seafood have emerged as both cost-effective and pragmatic. Forecasts suggest a sharp uptrend in plastic packaging sales in the coming years, primarily attributed to a heightened emphasis on hygiene and the rising need for packaging that prolongs shelf life and retains the crucial attributes of meat and poultry, essential for both domestic and global markets.
- Meat and food manufacturers in Thailand increasingly seek lightweight, protective, visually appealing, and high-barrier plastic film packaging. A boost is expected in this trend of export packaging sales. Additionally, the rising emphasis on multi-sensory experiences in food packaging drives impulse global purchases, thereby bolstering the market. This uptick in demand for pouches, bags, and wraps can be linked to several factors, including new packaging machinery that enables higher production and filling speeds, alongside advancements in sealing techniques.
- In Thailand, the rising demand for processed foods and the increasing consumer preference for convenience drive the need for flexible packaging. Data from the US Department of Agriculture highlights that as living costs in Thailand rise, consumer spending on food retail also increases. Furthermore, Thailand's processed food exports, accounting for 54% of its total exports in 2023, are a key driver of market growth for plastic films.
