Source: GlobalData
Consumer sustainability demands drive Thailand’s food and beverage companies to shift to circular packaging, says GlobalData
Posted in Consumer
Thailand’s food and beverage (F&B) industry is undergoing a significant shift towards sustainability as regulatory pressures and consumer demands for eco-friendly packaging continue to rise. With sustainability increasingly at the forefront of business strategies, industry leaders like Tetra Pak Thailand are taking significant steps to drive the adoption of circular packaging solutions. Underlining the trend, 90% of respondents in a recent survey stated that they choose sustainable feature as essential/nice to have when deciding to make a purchase*, says GlobalData, a leading data and analytics company.
In response to growing environmental concerns, the Thai government has implemented stronger regulations targeting waste reduction and promoting circularity. The Second National Action Plan on Plastic Waste (2022-2027) and the Sustainable Packaging Act are part of the government’s broader effort to tackle plastic waste and improve recycling rates. These regulations compel F&B manufacturers to adopt Extended Producer Responsibility (EPR) frameworks, ensuring that packaging is responsibly managed from production through disposal.
Kakarlapudi Karthik Varma, Consumer Analyst at GlobalData, comments: “With sustainability becoming a priority for consumers, brands are adapting to meet these expectations. F&B manufacturers are increasingly turning to renewable and recyclable materials as they seek to meet both regulatory requirements and consumer expectations.
“Tetra Pak Thailand has been at the forefront of circular packaging innovations, offering solutions that not only meet regulatory requirements but also align with consumer preferences for eco-friendly packaging. Other manufacturers have also taken initiatives, such as Kao Industrial Thailand’s partnership with SCG Chemicals Co., Ltd (SCGC) and Dow Thailand Group to create recyclable, low-carbon packaging.”
Francis Gabriel Godad, Consumer Business Development Manager, GlobalData India, adds: “Tetra Pak’s four-step approach—focused on resource conservation, energy recovery, operational efficiency, and environmentally neutral production processes—highlights the company’s commitment to advancing sustainability in the F&B industry. Their packaging materials, including FSC-certified paperboard, contribute to the shift towards a circular economy by reducing reliance on fossil fuels and minimizing environmental impact.”
Varma concludes: “With the introduction of the Sustainable Packaging Act and the continuous pressure from consumers, Thailand’s packaging industry is at a turning point. Collaboration among businesses, government entities, and industry leaders like Tetra Pak is crucial in creating a future where packaging is no longer considered waste but a valuable resource within the circular economy.
“The shift towards 100% recyclable and renewable packaging is on the horizon, and stakeholders in the F&B sector must proactively stay ahead of regulatory trends and consumer demands.”
*GlobalData 2024 Q2 Consumer Survey – Thailand was conducted with 502 participants