Krungthai COMPASS Research Center highlights the environmental impact of plastic waste and the increasing consumer awareness towards environmental issues as an opportunity for Thailand's bioplastics manufacturing industry. To align with the global sustainability trend, it recommends entrepreneurs utilize organic waste and agricultural by-products as raw materials for producing bioplastics like PLA and PHA. This approach not only adds value to organic waste and agricultural by-products by 3 to 12 times but also enhances production capacity without burdening the agricultural sector. The market value for PLA and PHA in Thailand is expected to grow significantly, averaging 40% annually, potentially reaching 19 billion baht by 2026.

Dr. Pacharaporn Nantharamat, Assistant Managing Director of Krungthai Bank, revealed that the global bioplastics market still has substantial growth potential, supported by key factors such as the enforcement of laws banning single-use plastics, consumer awareness regarding health and environmental issues, and the rapid adaptation of businesses to ESG trends and greenhouse gas reduction efforts, as well as achieving Net Zero goals in the future. Advances in biotechnology allow for the upcycling of low-value organic waste and agricultural by-products into environmentally friendly bioplastics like Polylactic Acid (PLA) and Polyhydroxyalkanoate (PHA), which are more sustainable than conventional petrochemical plastics.

“To boost the production of PLA and PHA bioplastics in Thailand to meet global market demand, utilizing food waste and unused agricultural by-products as raw materials presents an interesting option for expanding production capacity without adding burdens to the agricultural sector. It is projected that the combined market value of PLA and PHA bioplastics in Thailand could reach 19 billion baht by 2026. Furthermore, leveraging organic waste and agricultural by-products will help reduce greenhouse gas emissions and pollution from landfilling organic waste and burning agricultural residues, supporting the country's Net Zero goals and promoting efficient use of natural resources in line with Circular Economy principles, aligning with ESG trends,” Dr. Pacharaporn added.

Dr. Chaisit Anuchitvorawong, Analyst, stated that Thailand currently generates over 12 million tons of organic waste, primarily food waste, and has up to 160 million tons of agricultural by-products annually. This represents an interesting carbon source for converting into essential materials for producing PLA and PHA bioplastics. Additionally, these raw materials are significantly cheaper compared to commonly used food crops like cassava, corn, and sugarcane. This not only reduces raw material costs but also mitigates risks associated with reliance on food crops, which have shown variable yields due to unpredictable weather conditions. Importantly, it can significantly increase the value of organic waste and agricultural by-products; for instance, using vegetable and fruit scraps to produce PLA bioplastics could enhance their value by approximately 3 to 12 times compared to selling them as animal feed.

“Although Thailand has a ready supply of alternative raw materials, bioplastics entrepreneurs need to continuously enhance their competitive capabilities to support sustainable business growth. Key success factors include focusing on research and development, particularly R&D collaborations with strong partners to improve production efficiency and reduce costs, enabling better competition with conventional plastics. Additionally, discovering new high-value innovations is crucial, as is the ability to quickly and effectively commercialize research outcomes, while also building business networks within the production supply chain, including raw material sourcing and potential market support, as well as testing and obtaining product certification to instill consumer confidence,” Dr. Chaisit concluded.

“Krungthai Research” suggests transforming agricultural waste into ‘bioplastics’ to align with ESG trends

Krungthai COMPASS Research Center highlights the environmental impact of plastic waste and the increasing consumer awareness towards environmental issues as an opportunity for Thailand's bioplastics manufacturing industry. To align with the global sustainability trend, it recommends entrepreneurs utilize organic waste and agricultural by-products as raw materials for producing bioplastics like PLA and PHA. This approach not only adds value to organic waste and agricultural by-products by 3 to 12 times but also enhances production capacity without burdening the agricultural sector. The market value for PLA and PHA in Thailand is expected to grow significantly, averaging 40% annually, potentially reaching 19 billion baht by 2026.

Dr. Pacharaporn Nantharamat, Assistant Managing Director of Krungthai Bank, revealed that the global bioplastics market still has substantial growth potential, supported by key factors such as the enforcement of laws banning single-use plastics, consumer awareness regarding health and environmental issues, and the rapid adaptation of businesses to ESG trends and greenhouse gas reduction efforts, as well as achieving Net Zero goals in the future. Advances in biotechnology allow for the upcycling of low-value organic waste and agricultural by-products into environmentally friendly bioplastics like Polylactic Acid (PLA) and Polyhydroxyalkanoate (PHA), which are more sustainable than conventional petrochemical plastics.

“To boost the production of PLA and PHA bioplastics in Thailand to meet global market demand, utilizing food waste and unused agricultural by-products as raw materials presents an interesting option for expanding production capacity without adding burdens to the agricultural sector. It is projected that the combined market value of PLA and PHA bioplastics in Thailand could reach 19 billion baht by 2026. Furthermore, leveraging organic waste and agricultural by-products will help reduce greenhouse gas emissions and pollution from landfilling organic waste and burning agricultural residues, supporting the country's Net Zero goals and promoting efficient use of natural resources in line with Circular Economy principles, aligning with ESG trends,” Dr. Pacharaporn added.

Dr. Chaisit Anuchitvorawong, Analyst, stated that Thailand currently generates over 12 million tons of organic waste, primarily food waste, and has up to 160 million tons of agricultural by-products annually. This represents an interesting carbon source for converting into essential materials for producing PLA and PHA bioplastics. Additionally, these raw materials are significantly cheaper compared to commonly used food crops like cassava, corn, and sugarcane. This not only reduces raw material costs but also mitigates risks associated with reliance on food crops, which have shown variable yields due to unpredictable weather conditions. Importantly, it can significantly increase the value of organic waste and agricultural by-products; for instance, using vegetable and fruit scraps to produce PLA bioplastics could enhance their value by approximately 3 to 12 times compared to selling them as animal feed.

“Although Thailand has a ready supply of alternative raw materials, bioplastics entrepreneurs need to continuously enhance their competitive capabilities to support sustainable business growth. Key success factors include focusing on research and development, particularly R&D collaborations with strong partners to improve production efficiency and reduce costs, enabling better competition with conventional plastics. Additionally, discovering new high-value innovations is crucial, as is the ability to quickly and effectively commercialize research outcomes, while also building business networks within the production supply chain, including raw material sourcing and potential market support, as well as testing and obtaining product certification to instill consumer confidence,” Dr. Chaisit concluded.

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