Market Trends of Thailand Pouch Packaging Industry
E-commerce and Convenient Packaging are Expected to Boost Market Demand
- Thailand's economic growth has spurred the production and consumption of packaging products. This surge is primarily driven by the rising need for versatile packaging solutions catering to a diverse range of products across various industries. The retail sector's push for products with prolonged shelf life and consumer preference for convenience boosted flexible packaging sales.
- The demand for pouch packaging is rising, driven by a growing preference for convenience in consumer products like food, beverages, and pharmaceuticals. In 2023, Thailand's urban population, accounting for nearly 53.61% of the total, demonstrated a strong inclination toward convenience, favoring high-quality brands and seeking out smaller shops and supermarkets near their workplaces or commutes for daily purchases. This could be attributed to changing lifestyles and the increasing demand for single-serve options.
- According to the Electronic Transactions Development Agency (ETDA), the e-commerce market value in Thailand in 2020 was THB 3.78 trillion, and it is expected to increase to THB 5.96 trillion. Thailand's e-commerce sector is significantly influencing the market's trajectory. Thailand witnessed a notable shift in consumer behavior, marked by a surge in food or other online shopping. This behavioral pivot directly impacted the market, driving the demand for efficient, cost-effective packaging solutions for e-commerce deliveries.
- Manufacturers are rolling out enhanced options to respond to the need for more user-friendly packaging. Noteworthy players like Thung Hua Sinn Co. Ltd are introducing features like tin-ties, pocket zippers, retorts, and spouts, empowering customers to personalize their pouches.
- With a rising preference for lightweight packaging, vendors are innovating to stay competitive in the evolving landscape of organized retail and processed foods. Transitioning to flexible pouches meets these demands and provides significant energy-saving advantages.
Understand The Key Trends Shaping This Market
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Stand-up Pouches are Expected to be Widely Used in the Country
- Flexible packaging options are as versatile as stand-up pouches. Used predominantly by the food and cosmetics industries, stand-up pouches are gradually making their way into other spheres as the preferred packaging solution.
- Stand-up pouches can hold all sorts of contents, from liquids and solid foods to completely non-food-related items. Spout stand-up bags, for instance, are easy to use, can be securely sealed, and are the perfect replacement for plastic bottles. The reduced weight of stand-up pouches makes them more economical to transport and warehouse, while their flexible shape allows retailers to display larger quantities in their stores efficiently.
- Companies operating in the country are focused on innovating new pouch packaging solutions. For instance, in March 2023, the Shokubutsu beauty care brand took all three Rs (Reduce, Reuse, and Recycle) to the next level with its new 100% recyclable stand-up pouch construction for its shower cream refill in Thailand. The mono-material pouch is made from polyethylene film, a type of film made from Tenter-Frame Biaxial Orientation. Lion Corp., a Japanese company in Thailand, uses this pouch for its Shokubutsu Monogatari brand.
- According to Industrial Economics (Thailand), in February 2024, the domestic sales volume of baked goods, including crackers/biscuits, in Thailand took the top position with 8.86 thousand metric tons, followed by bread products at 7.52 thousand metric tons. Snacks and cakes took the third and fourth positions. Domestic goods sales might push the need for stand-up pouches in the country.
- Manufacturers are increasingly prioritizing sustainability in packaging and exploring new eco-friendly methods and materials. A notable pet food recall shook the industry and prompted manufacturers to reevaluate their processes, emphasizing enhanced pet nutrition. This incident, in turn, catalyzed the growth of several premium pet food brands. Many shoppers prefer flexible, stand-up pouches over traditional, rigid packaging.
