Market Trends of Thailand Plastic Caps And Closures Industry
Polyethylene (PE) Segment is Estimated to Have the Largest Market Share
- Packaging plays a vital role in safeguarding the quality of beverages. Polyethylene, notably in its high-density (HDPE) and low-density (LDPE) forms, is a prevalent choice for bottle caps. HDPE caps, known for their robustness, exhibit exceptional resistance to both moisture and chemicals, rendering them versatile across various applications. This enhances the popularity of PE for making caps and closures.
- HDPE plastics are gaining favor over LDPE in Thailand due to their durability and cost-efficiency. HDPE is extensively employed in packaging caps and closures across industries, including food and beverage, pharmaceuticals, personal care, and household products. While LDPE is less rigid and chemically resistant than HDPE, it shares a similar composition. LDPE's flexibility makes it a staple in packaging, especially for crafting items such as caps, closures, and dispenser solutions.
- Amcor Group GmbH and Berry Global Inc. are prominent PE caps and closures manufacturers, catering to various industries like food, beverages, home care, and personal care. These caps come in different sizes, tailored for child-resistant, dispensing, and tethered applications, driving market growth.
- The cosmetic industry in Thailand is witnessing a surge, thanks to the rising adoption of PE for caps and closures in products like creams, serums, and moisturizers. Thailand, known for its beauty and cosmetics sector, notably exports to countries like China, Myanmar, India, the Philippines, and Australia. Recent data from the International Trade Centre (ITC) reveals that Thailand's beauty product exports hit a value of USD 824.22 Million, marking a notable 21.89% increase from the previous year.
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Beverage Industry Expected to Dominate the Market
- Thailand's tourism growth, due to eased travel restrictions and diverse tourist attractions, is creating business. The growing consumption of beverages such as bottled water in Thailand drives the demand for caps and closures.
- Consumers in Thailand have increasingly become health-conscious and are turning to beverages that promise added health benefits or help alleviate the stresses of daily life. Often enriched with vitamins, minerals, and bioactive compounds, these drinks cater to a demographic prioritizing wellness, a trend amplified post the COVID-19 era. The rising trend for healthy foods and beverages, including zero-sugar healthy juices and energy drinks, is fueling a surge in demand for caps and closures in Thailand.
- In Thailand, major carbonated soft drink players such as Coca-Cola and Pepsi are actively introducing a range of new flavors to meet the rising consumer appetite, consequently driving demand for caps and closures. In June 2024, Coca-Cola Thailand recently rolled out "Schweppes" zero-sugar soda in two citrus variants, targeting the country's younger demographic. This new offering is being distributed in cans through numerous channels, including convenience stores, supermarkets, and online platforms, poised to propel market expansion further.
- The rising exports of non-alcoholic beverages from Thailand significantly impact the demand for caps and closures in the nation. USDA data reveals that Thailand's bottled beverage exports rose from USD 1.57 billion in 2022 to USD 1.60 billion in 2023, hinting at a boost in market growth.
