InterPlas Thailand: Power up support for ASEAN plastics industry

Following depressed conditions in 2020, domestic sales and export volume of plastic products are projected to rise by an average of 2.0-3.0% per year over 2021-2023, according to report by Krungsri Research. This will be helped by the anticipated recovery in Thailand and other global economies, especially downstream industries such as packaging, electrical  appliances, construction, auto parts, and medical devices which collectively account for almost 80% of domestic consumption of plastic products. However, the report also indicated that there are lingering challenges for the industry over the next three years. These include uncertainty over the direction of crude oil prices (a primary input in the production of plastic resins), rising labour costs, and concerns over the environmental impact of plastics at home and abroad that are discouraging the consumption of single-use plastic items. In addition, government measures to boost investment especially in the ‘new S-curve’ industries will also benefit plastics producers that are part of these supply chains.

However, there are lingering challenges and players will face stiff competition and the growing movement to reduce and eliminate the production and consumption of single-use plastics. This would cap profit growth, although operators that control comprehensive and extensive supply chains from upstream raw materials through to downstream finished goods, and which are able to successfully manage stocks, sales and distribution, will be well-placed to maintain their profitability, according to Krungsri Research.

Reed Tradex Thailand Co., Ltd  will power up the business rebound by launching the first plastics exhibition after its postponement for two years. InterPlas Thailand 2022 is scheduled to take place on 22-25 June 2022 at Bangkok International Trade & Exhibition Centre (BITEC). As leading exhibition for the plastics industry in Thailand, InterPlas Thailand is the most comprehensive event for plastics manufacturing in ASEAN where the most diverse industry buyers sectors are represented. The exhibition is an ideal platform to businesses and presents opportunities as over 300 brands of the latest machinery, recycling technologies, raw materials are expected to be showcased. InterPlas Thailand is part of Manufacturing Expo, ASEAN’s leading machinery  and  technology  for  manufacturing  and  supporting  industries  consisting  of  five specialised events displaying plastics, mould and die, auto-parts, industrial automation, and surface and coatings technologies. The exhibition welcomes more than 85,000 participants as InterPlas Thailand is the most cost-effective marketing platform to generate brand awareness and sales leads. The event’s year-round marketing campaign, matchmaking, and smart digital tools will attract potential buyers even the exhibition begins.

Plastics market in Thailand on the upswing

Despite the challenges posed by the Covid-19 pandemic that affected ASEAN countries, the plastics industry in Thailand is projected to sustain its growth momentum. A report by Technavio states that the plastics market in Thailand is set to grow by US$8.63 billion at a 4.72% CAGR between 2021 and 2026. The market is segmented by end-user (packaging, electronics, and electrical appliances, construction, automotive, and others) and trade types (domestic and exports).  The packaging industry accounts for the bulk of demand for plastics while automotive, construction and electronics/electrical appliances are not far behind.

The demand for flexible plastic packaging from hospitals, medicine manufacturers, and personal protective equipment (PPE) manufacturers is likely to be strong over the forecast period. Plastics are in higher demand in medical devices like testing equipment, ventilators, and syringes, as well as personal protective equipment like masks and face shields. During the projected period, the demand for packaging materials in the healthcare industry is expected to stay stable.  Although effective waste management will further boost the market growth, the stringent regulations over the usage of plastics, says an analyst at Technavio. For more information on InterPlas Thailand 2022, visit: www.interplasthailand.com

- For more articles on InterPlas Thailand, click here. 

- This article also appears in International Plastics News for Asia - April issue. To read the e-zine, click here.