Market Trends of Thailand Flexible Plastic Packaging Industry
The Demand for Convenient Packaging is Rising
- Flexible packaging's convenience and sustainability resulted in its application in non-invasive pharmaceutical liquids for safe, sterile, and controlled use at laboratories, medical facilities, and inter-hospital transit.
- Manufacturers offer improved features; however, consumers are always looking for more convenient packaging options. For instance, Thung Hua Sinn Co. Ltd, Toppan Co. Ltd, and other vendors offer packaging features, such as tin-ties, pocket zippers, retorts, and spouts, to help customers customize their bags. According to the US Department of Agriculture, the total sales value of packaged food was USD 14.41 billion in 2020, which reached USD 15.95 billion in 2023. Such growth in packaged food is expected to boost the market's growth.
- As consumers look for easy-to-use and lightweight packaging, vendors are developing innovative packaging solutions to remain competitive in the growing organized retail and processed food market and keep up with the changing customer demands. Shifting to an alternative lighter material, such as flexible pouches, provides more significant energy-saving benefits.
- The growing urban lifestyle of Thai consumers has been pushing the demand for packaged convenience food. Convenience stores are gaining importance for consumers amid the country’s urbanization. They are expected to remain a key channel for manufacturers to target, according to the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). Thailand’s urban population comprised almost half the total population, nearly 51.4%, in 2023.
- The country's embrace of modern retail formats and the expanding array of processed, ready-to-eat foods have increased demand, drawing in consumers seeking convenient groceries. Additionally, local consumers' rising adoption of Western eating habits, bolstered by immigrants, tourists, and the younger demographic, is fueling the appetite for packaged foods. As lifestyles evolve and households shrink, there's a notable pivot toward flexible plastic packaging, catering to the demand for single-serve options.
Understand The Key Trends Shaping This Market
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Food Packaging is Expected to Witness Growth in the Country
- Flexible packaging is widely used for food products because it can preserve freshness, enhance shelf life, and protect against contamination. Mostly, it is made of plastic and is used for various food products, including fresh produce, meat and poultry, dairy products, snacks, and ready-to-eat meals. According to the OECD, poultry consumption per capita in 2021 was 7.24 kilograms and is expected to reach 7.68 kilograms in 2024.
- The increasing demand for packaged food products drives the need for flexible plastic packaging in the food segment. In addition to food delivery from restaurants, online grocery services are also on the rise in Thailand. The food delivery industry in Thailand has seen tremendous growth in recent years due to the rising demand for online ordering and the need for speed and convenience in food delivery.
- Thailand's exposure to global food (prepared/processed) has changed consumer habits, including attitudes toward food and consumption habits. The demand in Thailand has shifted toward processed and packaged ready-to-eat foods sold mainly in supermarkets and convenience stores.
- The market for pouch packaging is growing rapidly in the food segment. Pouch packaging is replacing traditional materials like paperboard, metals, and glass due to its advantages, such as being lightweight and low cost. Flexible packaging enhances the sustainability of the product by extending its shelf life and introducing innovations in the frozen food market while minimizing spoilage.
- The market segment is experiencing a new wave of consumer preference toward frozen foods, driving market demand. Part of this is the consumer shift toward spending more on higher-quality food products.
