Thailand Board of Investment

www.boi.go.th

BIOPLASTICS
INDUSTRY OVERVIEW AND TRENDS
Bioplastics are regarded as a potential solution to address emphasizes the sustainable and eco-friendly growth of the
environmental and economic challenges. They represent the petrochemical and plastics industries. The Thai government has
fastest growing product line for bio-based products.1 Several put in place measures to support Thai and foreign entrepreneurs
countries have taken action and significantly increased awareness who invest in research and development (R&D) and who use
of the use of bioplastics. Under the EU’s Plastics Strategy, from Thailand as a base for exporting bioplastics to the world market.
2030 onwards all plastic packaging on the market will be made
from renewable raw materials and recycled after use through The global production capacity for bioplastics is expected to
existing recycling systems.2 China is also embracing the trend and increase from 2.11 million tons in 2018 to 2.61 million tons by
will also focus on promoting bioplastics in packaging by increasing 2023. Asia remains a major production hub, with over 50% of
production capacity. These shifts also promote bio-based bioplastics production taking place in the region.3 Additionally, the
alternatives and enhance innovative bio-economies. In Thailand, worldwide bioplastic packaging market is expected to grow from
the Thailand Industrial Development Strategy 4.0 (2017-2036) USD 5.94 Billion in 2018 to USD 24.84 billion by 2026.4

GLOBAL PRODUCTION
CAPACITIES OF BIOPLASTICS
IN 2018
(BY REGION)

19%
16% 55%

Total: 2.11 Million Tons

9%
1%

Asia Europe North America South America Australia/ Oceania

Source: European Bioplastics, nova-Institute (2018)

More Information: www.european-bioplastics.org/market
and www.bio-based.eu/markets
1. OECD (2013-10-28), “Policies for Bioplastics in the Context of a Bioeconomy”, OECD
Science, Technology and Industry Policy Papers, No. 10, OECD Publishing, Paris.
http://dx.doi.org/10.1787/5k3xpf9rrw6d-en
2. “Communication from the Commission to the European Parliament, The Council, the
European Economic and Social Committee and the Committee of the Regions” 3. Nova-Institute (2019)
A European Strategy for Plastics in a Circular Economy, European Commission 4. Fior Markets
 GLOBAL PRODUCTION CAPACITIES OF THAILAND AS A BIOPLASTIC HUB
BIOPLASTICS
3,000
Thailand is well positioned to become a global bioplastics hub. The
2,616 country is a leading producer of the raw materials needed for
2,500 2,357 bioplastic synthesis and is well equipped with advanced technology
2,194 2,216 2,205 and technical expertise through all phases of the supply chain. The
2,060 2,112
2,000
1,328 Kingdom’s strategic location at the heart of Southeast Asia creates
1,244 market access to consumers all over the region, and strong
in 1,000 Tons

1,200 1,190 1,179

1,500 1,175 1,200 governmental supporting policy has been implemented to fuel
growth in this sector. All of these factors highlight Thailand’s
1,000 readiness to emerge as a global bioplastic hub.
1,113 1,288
500
885 912 994 1,026 1,026

0
2017 2018 2019 2020 2021 2022 2023 BIOPLASTICS SUPPLY CHAIN
Forecast Forecast Forecast Forecast Forecast

Biodegradable Bio-Based/ Non-Biodegradable

Source: European Bioplastics, nova-Institute (2018)

More Information: www.european-bioplastics.org/market and www.bio-based.eu/markets

Feedstock Biochemical Bioplastics Bioplastics

GLOBAL PRODUCTION CAPACITIES OF Resin Compound
BIOPLASTICS IN 2018
(BY MATERIAL TYPE)

Other 1.5% 9.5% PE

(Biodegradable)
Products and
Certification
Starch 18.2%
Blends 25.6% PET

Total: 0.0% PP*

PHA 1.4%
2.11 Million Tons
0.0% PEF*
PLA 10.3%

11.6% PA
PBS 4.6%
9.2% PTT
PBAT 7.2%
0.9% Other
(Bio-Based/
Non-Biodegradable)

Biodegradable Bio-Based/ Non-Biodegradable

43.2% 56.8%

* Bio-Based PP and PEF are currently in development and predicted to be available at

commercial scale in 2023

Source: European Bioplastics, nova-Institute (2018)

More Information: www.european-bioplastics.org/market and www.bio-based.eu/markets
ˆˆ FEEDSTOCK ˆˆ BIOCHEMICAL:
Thailand is prodigious producer of the feedstock needed for In Thailand, lactic acid is the most vital biochemical for
bio-based plastics, most notably cassava and sugarcane. bioplastic industry production. Purac (Thailand), from Corbion
Over 40 million tons of cassava and sugarcane are produced Purac, a global Lactic Acid producer, has increased production
per year,5 but less than 1% is currently used for bioplastic capacity up to 145,000 tons per year.
synthesis.
Biochemical Production Capacity (Tons/Year)
Cassava Lactic Acid 145,000 8
Thailand is the number one of cassava exporter both in Asia
Lactide 75,000
and in the world. Thailand produces approximately 30 million
tons of cassava per year, 35% of which is exported for a total
value of 3,264.57 million USD, owning 74.2% of the market
share.6 ˆˆ BIOPLASTIC RESIN
After a new resin plant commenced operations in 2018, the
Sugarcane levels of bioplastic resin production and export have increased
Thailand is also the world’s second largest exporter of by more than 300%, from 545 tons in 2017 to 2,422 tons in
sugarcane, producing over 13 million tons per year, or 2018. Over 15,000 tons of bioplastic resin are expected to be
approximately 13% of the global market share.7 As it contains exported in the next year. The major markets are the
glucose, sugarcane is highly useful raw ingredient for bio- Netherlands, China, the USA, and South Korea, respectively.
based products. As opposed to other starch-based feedstock, Others
5.5%
Glucose requires no additional processing before use in
biochemical and bioplastic production, thus shortening the
Germany
1.2% WORLD’S PLA
conversion process and decreasing production costs. Italy
3.8%
EXPORT RANKING
USA
China
16.8%
42.1% Thailand
Feedstock
Production
World
Ranking In
Export
World
Ranking In
Share Of
World’s
2007 1.7%
(Million Tons) (Million Tons)
Production Export Exports Export Total Belgium Others
26.67 KTA 1.9% 2.0%
Cassava 29.37 2nd 10.3 1st 74.2%
China
Sugar 13 4 th
7.2 2nd
13% 3.3%
Netherlands
30.5%
Thailand is No Ranking
Netherlands 2018
Others 28.2% Export Total
2.0%
142.37 KTA
China
1.9% USA
62.9%
Belgium
3.3%
Thailand Thailand is 5th Ranking
6.8% (2.42 KTA)

2019
Export Total
Netherlands 156 KTA USA
28.6% 57.3%
(Estimated)

Thailand is The 3rd Ranking

Source: Global Trade Atlas/
Plastic Institute of
5. Source: Office of Agricultural Economics (OAE) (2018) and Food and Agriculture Thailand (March 2019)
Organization of the United Nations (FAO) (2018)
6. Source: OAE/ Remark: Exchange rate (BOT, Sep 17, 2019) USD 1 = THB 30.57 8. Purac (Thailand) is the only company in Thailand who produces Lactic Acid used for
7. Source: FAO (2018) Polylactic polymer (PLA) production in particular. (Plastic Institute of Thailand. 2019)
 PTT MCC is a joint venture between PTT
THAILAND’S BIOPLASTIC RESINS Public Company Limited (PTT) and Mitsubisi
IMPORT&EXPORT VOLUME 2016-2019 Chemical Corporation (MCC) under the
BioPBS brand. Based in Rayong, the MTT MCC plant is the
(H.S.CODE 3907.70)
first Polybutylene Succinate (PBS) plant in the world, with
production capacity of 20,000 tons per year.
20,000,000
18,526,388

Companies Production Production Capacity (Tons/Year)

15,000,000
Tons/Year

PTTMCC PBS 20,000

Total Corbion PLA 75,000
10,000,000

5,000,000 THAILAND’S PLA EXPORT

867,179
2,421,847 PARTNER COUNTRIES 2019 (JAN-JUL 2019)
553,273 172,860 550,848 544,837 671,754
0 (H.S.CODE 3907.70)
2016 2017 2018 2019
Jan-Sep
Import Volume Export Volume Others
Source: www.Plastat.com (September 2019)
12.6%
Netherlands
41.7%
Italy
Key players: Total Corbion, PTT MCC, Advanced Biochemical
(Thailand) Co., Ltd.
6.8%
2019
South Korea Export Total
Total Corbion
is a 7.4% 11,709 Tons
collaboration between
Total and Corbion to manufacture world-class polylactic
polymer (PLA) with an investment of approximately 100 million USA
9.6%
USD. Total Corbion began manufacturing PLA in the second
half of 2018 in Rayong, Thailand. The current production China
capacity is 75,000 tons per year, the majority of which is 21.9%
exported to the European market. Source: Plastic Institute of Thailand (July 2019)

ˆˆ BIOPLASTIC COMPOUND
Key players: PTT GC, R&B, Thai BAG, King Pac Industrial
Co., Ltd., Prepack Thailand, Reangwa Standard Industry
Co., Ltd., Thantawan Industrial Plc.

Seventy percent of Thailand’s plastic industry, or more than

1,900 companies, are plastic converters. 9 As global
environmental awareness grows, several research centers
and institutes are playing significant roles in supporting plastic
compound entrepreneurs in Thailand to shift to bioplastic
manufacturing. The organizations provide business advice for
all stages of the production process and workshop trainings
on subjects like design and development, molding, and
programming.

9. Plastic Intelligence Unit, Plastic Institute Thailand (2018)

ˆˆ STRATEGIC LOCATION
In addition to the abundance of raw materials and the
readiness of the upstream to downstream industries, the
strategic location at the center of Southeast Asia also
strengthens Thailand position as a high-potential location of
bioplastic production. Thailand is ideally located to export and
distribute bioplastic resins and products to other ASEAN and
Asian countries as the markets for bio-friendly products grow.

ˆˆ GOVERNMENTAL POLICY
In June 2019, Thailand’s cabinet approved another green
measure to promote bioplastic packaging, offering a tax
deduction up to 125% from January 2019 to December 2021
to companies that purchase and use bioplastics for their
products. The tax policy is expected to motivate 10% of
existing plastics companies to transition to bioplastic
production.

Under the Thailand Plastics Waste Management Roadmap

(2018 – 2030), single-use plastic items and polystyrene foam
containers will be banned by 2022. Currently, however,
voluntary bans and the use of biodegradable plastics have
become increasingly common and have been adopted by
many major department stores, hypermarkets, retailers, and
associations, including The Mall Group, Big C Supercenter
Plc, CP All Plc, and Central Department Store Co.10

10. Source: Ministry of Natural Resources and Environment (June 2019)

SUPPORTING FACILITIES
The Thai government is working to provide continuous support in
improving the investment environment for bioplastics investors. In
collaboration with educational institutions, research centers, and
the private sector, the government is offering resources for human
resource training and research and development as well as
providing access to dedicated bioplastics-related faculties in over
20 leading academic institutions.

ˆˆ RESEARCH CENTERS
Center of Excellence on
Provides academic
Petrochemical and
training programs and
Materials Technology,
R&D services.
Chulalongkorn University

Bioplastics Research Unit, Supports developing

Prince of Songkla bioplastic for the plastic
University industry.

Cassava and Starch

Technology Research
Provides R&D services.
Laboratory,
Kasetsart University

Department of
Offers academic training
Biotechnology,
programs, R&D services,
Faculty of Science,
and consulting services.
Mahidol University

Researches, develops and

establishes bodies of
Faculty of Science,
knowledge, as well as,
Burapha University
innovations in science and
technology.

Researches bioplastics
Faculty of Engineering and compounding and R&D in
Industrial Technology, technology regarding
Silpakorn University bioplastic modification and
synthesis.

Faculty of Science,
Undertakes R&D in
King Mongkut’s Institute
polymers.
of Technoloy Ladkrabang

Faculty of Science and Undertakes R&D in

Technology, polymers and bio-
Thammasart University materials.
ˆˆ ASSOCIATIONS AND INSTITUTIONS INVESTMENT INCENTIVES
Promotes and enhances
the Thai plastics industry’s BOI recognizes the importance and value of the bioplastics industry,
Plastics Institute of
Thailand
competencies through and offers a wide range of tax and non-tax incentives for projects
R&D and product testing that meet national development objectives.
services.

Supports R&D in 5 target

areas: agriculture and ˆˆ NON - TAX INCENTIVES
National Science and
food; energy and These activities also receive the following non-tax incentives:
environment; health and
Technology Development
medicine; bioresources • Permit to bring in expatriates
Agency (NSTDA)
and community; and • Permit to own land
manufacturing and service
industries.
• No restriction on foreign currency

Creates and enhances

National Metal and capabilities in materials ˆˆ TAX INCENTIVES
Materials Technology technology of both
Center (MTEC) governmental and private Incentives
sectors through R&D. Corporate
Group Eligible Activities Exemption of
Income Tax
Import Duty
Assists in the development Exemption
of the Thai Bioplastics
industry to reach Manufacture of eco-friendly
Thai Bioplastics Industry chemicals or polymers or
international standards
Association manufacture of products
and promotes networking
within the Bioplastics from eco-friendly chemicals
community. A2 or polymers that is
incorporated within the
8 Years 
same project as the
Supports R&D of manufacture of eco-friendly
National Innovation innovative products and chemicals or polymers
Agency embeds the innovative
strategic direction of firms.
Manufacture of products

Biodiversity-Based Supports and promotes a

A3 from eco-friendly polymers
5 Years 
Economy Development bio-based economy and
Office enhances value-added Manufacture of paper
(Public Organization):
BEDO
bio products in the
country.
A4 container coated with
bioplastics
3 Years 
Supports R&D, policy
National Center for research, and international
Genetic Engineering and relations in agricultural,
Biotechnology biomedical and
environmental sciences.

Promotes and enhances

innovations in science and
Thailand Institute of
technology R&D
Scientific and
capabilities for
Technological Research
commercialization and
social benefits.
CONTACT US
OFFICE OF THE BOARD OF INVESTMENT ONE STOP SERVICE CENTER FOR
555 Vibhavadi-Rangsit Road, Chatuchak, VISAS AND WORK PERMITS
Bangkok 10900 18th Floor, Chamchuri Square Building,
Tel: +66 (0) 2553-8111 319 Phayathai Road, Pathumwan,
Fax: +66 (0) 2553-8315 Bangkok 10330
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Email: head@boi.go.th Fax: +66 (0) 2209-1194
Email: visawork@boi.go.th
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(OSOS)
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SHANGHAI JAKARTA
Thailand Board of Investment, Shanghai Office Thailand Board of Investment, Jakarta Office
Tel: +86-21-5260-9876, Tel: +62 817 9800 203
+86-21-5260-9877 Email: jkt@boi.go.th
Email: shanghai@boi.go.th
NEW YORK
BEIJING Thailand Board of Investment, New York Office
Thailand Board of Investment, Beijing Office Tel: +1 (0) 212 422 9009
Tel: +86-10-8531-8755 to 87 +86-10-8531-8753 Email: nyc@boi.go.th
Email: beijing@boi.go.th Website: www.thinkasiainvestthailand.com

GUANGZHOU LOS ANGELES

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Tel: +86-20-8385-8988 Ext. 220-225, Tel: +1 (0)-323-960-1199
+86-20-8387-7770 (Direct line) Email: boila@boi.go.th
Email: guangzhou@boi.go.th
FRANKFURT
TAIPEI Thailand Board of Investment, Frankfurt Office
Thailand Board of Investment, Taipei Office Tel: +49 (069) 92 91 230
Tel: +886-2-2345-6663 Email: fra@boi.go.th
Email: taipei@boi.go.thh
PARIS
TOKYO Thailand Board of Investment, Paris Office
Thailand Board of Investment, Tokyo Office Tel: +(33-1) 56 90 26 00
Tel: +81 (0) 3-3582-1806 Email: par@boi.go.th
Email: tyo@boi.go.th
STOCKHOLM
OSAKA Thailand Board of Investment, Stockholm Office
Thailand Board of Investment, Osaka Office Tel: +46 (0) 8463 1158,
Tel: +81 (0) 6-6271-1395 +46 (0) 8463 1174-75
Email: osaka@boi.go.th Email: stockholm@boi.go.th

SEOUL SYDNEY
Thailand Board of Investment, Seoul Office Thailand Board of Investment, Sydney Office
Tel: +82-2-319-9998 Tel: +61-2-9252-4884
Email: seoul@boi.go.th +61-2-9252-4882
Email: sydney@boi.go.th
MUMBAI
Thailand Board of Investment, Mumbai Office
Tel: +91-22-2204-1589-90
Email: mumbai@boi.go.th

HANOI
Thailand Board of Investment, Hanoi Office
Tel: +84 24 3823 5092-4 Think Asia,
Email: hanoi@boi.go.th Invest Thailand
EN Dec 2019