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Thailand Folding Cartons and Corrugated Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 100 Pages
  • April 2023
  • Region: Thailand
  • Mordor Intelligence
  • ID: 4847427
UP TO OFF until Dec 31st 2023
The Thailand folding carton and corrugated packaging market are expected to register a CAGR of 8.42% during the forecast period. Folding cartons is one of the most used eco-friendly packaging solutions. Its ability to be produced in various sizes with a small footprint, compared to other packaging options, makes it feasible for use in different end-user industries. On the other hand, corrugated board packaging features a versatile and cost-efficient method to protect, preserve, and transport a wide range of products due to attributes such as light weight, biodegradability, and recyclability. It made an integral component of the packaging industry.

Key Highlights

  • Growth in the market studied is mainly due to the continued demand for packaged food and beverages. Likewise, ThaiBev aimed to increase the recycled paper proportion and use damaged cartons to produce corrugated cartons.
  • The industries where folding cartons are mainly used include the food and beverage industry, personal care industry, healthcare industry, household care industry, and others. The country is experiencing a significant shift from plastic to paper-based packaging adoption, expected to generate incremental opportunities for manufacturers in the folding carton packaging market. Since consumers are becoming increasingly aware of plastic adverse effects on the environment, manufacturers are capitalizing on this opportunity to innovate in eco-friendly solutions.
  • As the e-commerce demand grows, so does the packaging challenge. Sustainable packaging is an unprecedented priority for both brands and consumers. Implementing eco-packages in brand operations is no longer an option but a necessity.
  • The economic development in Thailand resulted in the increased production and consumption of folding cartons and corrugated packaging products. The Thai folding carton packaging industry is witnessing growth and contributing noteworthily to the country'scountry's economy. It is because of the increasing demand for suitable packaging materials that can be used to pack anything across several end-user verticals.
  • Online shopping is gradually becoming a significant mainstream in Thailand, with more consumers preferring it due to its convenience. This shift became even more prevalent during the COVID-19 pandemic, with the strict lockdown and social distancing rules being in place. With the Rising E-commerce in the country, the market is increasing after the pandemic.

Thailand Folding Cartons & Corrugated Packaging Market Trends

Increasing Packaging Capacity Due to Rising E-commerce Drives the Market Growth

  • Increased demand for packing boards for online sales, tissue papers, and specialty papers, as a result of the COVID-19 pandemic, promoted the paperboard packaging industry growth in the country.
  • Since the pandemic began, e-commerce sales have grown by more than two years. Meanwhile, the corrugated business needs help to keep up. Paper mills operate at total capacity; some producers limit orders and outsource to smaller firms. Consumers are increasingly choosing e-commerce over brick-and-mortar establishments. Thus, the demand is expected to continue to rise.
  • The e-commerce industry emerged as a significant player in recent years, with Amazon using corrugated board boxes for the principal packaging and relying on plastic packaging for individual items. The increasing concerns of Thai people associated with packaging waste are likely to compel the government to ring regulations that prompt the citizens to adopt environment-friendly options, such as folding cartons or corrugated boxes, as a viable choice for packaging.
  • The growing smartphone adoption in the country directly correlates with the e-commerce value since most citizens prefer online shopping through mobile phones rather than laptops or PCs. According to Tech Asia, the e-commerce market's estimated size in Thailand would amount to USD 24 billion in the next two years.
  • According to a survey conducted by the National Statistical Office (Thailand) in the previous year, around 99.9% of respondents aged between 15 to 24 stated that they are using smartphones. Such figures drive the demand for e-commerce shopping, indirectly influencing the folding carton packaging growth in the country.

Food and Beverage Segment is Expected to Hold Major Market Share

  • The increase in incomes and increased spending on food by the growing middle-class population in the country is driving the food and beverage industry growth. As a more significant share of the population lives in Bangkok's sprawling suburbs, the demand for convenient packaged food options is growing.
  • Moreover, rapid urbanization increased the demand for processed foods and ready-to-eat meals in the country. Ready-to-eat meal products are among the top adopters of cartons as the secondary form of packaging, fueling the market's growth. According to Global Organic Trade Guide, the consumption value of organic packaged food and beverages in Thailand is estimated to be approximately USD 30.2 million in the current year.
  • Additionally, there is an increasing demand for folding carton packaging from the dairy packaging sector. Liquid cartons are the most common type of paperboard packaging used for dairy products. Milk consumption in the country is likely to increase as consumers actively switch from soft drinks to healthy dairy alternatives.
  • In recent years, Tetra Pak, a food processing and packaging solutions company, and mMilk, launched a tetra top carton bottle for the first time in Thailand. mMilk is well known in the country for its lactose-free milk. The mMilk products, such as A2+ and Green Milk, were to be sold in Thailand in tetra-top carton bottles.
  • TETRA PAK Thailand, a food processing and packaging services company, in collaboration with the Forest Stewardship Council (FSC) and WWF Thailand, is encouraging Thai consumers to look for the Tetra Pak logo on beverage cartons. The company stated that the consumers would get carton products made from environmentally sound materials - paper sourced from responsibly managed forests that would also support local farming.

Thailand Folding Cartons & Corrugated Packaging Market Competitor Analysis

The Thailand Folding Cartons and Corrugated Packaging Market is highly fragmented, with significant players like Siam Toppan Packaging Co. Ltd, Thai Containers Group (SCG Packaging), Thung Hua Sinn Group, Continental Packaging (Thailand) Co. Ltd, and Oji Holdings Corporation among others. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
  • In May 2022, the Thai Containers Group announced that it would be expanding its fiber packaging capacity by 75,000 metric tons per year in Thailand to fulfill the growing demand as the economy recovered with a commercial start-up in mid-2023.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Industry Value Chain Analysis
5.1 Market Drivers
5.1.1 Increasing Packaging Capacity due to Rising E-commerce
5.1.2 Shift of Major Production to Thailand in lieu of US-China Trade War
5.1.3 Government Initiatives on Promoting Sustainable Packaging environment
5.1.4 Growing adoption of light weighing materials and scope for printing innovations across end user segments
5.2 Market Challenges
5.2.1 Concerns over Material Availability and Durability of Corrugated Board-based Products Across Applications
5.3 Market Opportunities
5.3.1 End User Segment Participation toward Sustainability
5.3.2 Governmental Initiatives
5.4 Impact of COVID-19 on the Industry
6.1 By End User
6.1.1 Food and Beverage
6.1.2 Healthcare and Pharmaceutical
6.1.3 Household and Personal Care
6.1.4 Other End-user Industries (Manufacturing, Automotive, etc.)
7.1.1 Siam Toppan Packaging Co. Ltd
7.1.2 Thai Containers Group (SCG Packaging)
7.1.3 Thung Hua Sinn Group
7.1.4 Continental Packaging (Thailand) Co. Ltd
7.1.5 Oji Holdings Corporation
7.1.6 ASA Group Company Limited
7.1.7 Sarnti Packaging Co. Ltd
7.1.8 Balance Packing Co. Ltd
7.1.9 BG Packaging Company Limited
7.1.10 Tri-Wall Ltd
7.1.11 C&H Paperbox (Thailand) Co. Ltd
7.1.12 Hong Thai Packaging Company Limited

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Siam Toppan Packaging Co. Ltd
  • Thai Containers Group (SCG Packaging)
  • Thung Hua Sinn Group
  • Continental Packaging (Thailand) Co. Ltd
  • Oji Holdings Corporation
  • ASA Group Company Limited
  • Sarnti Packaging Co. Ltd
  • Balance Packing Co. Ltd
  • BG Packaging Company Limited
  • Tri-Wall Ltd
  • C&H Paperbox (Thailand) Co. Ltd
  • Hong Thai Packaging Company Limited