Welcome to ANDA
Welcome to ANDA
Southeast Asia is one of the fastest-growing regions in the world. Countries in this geographic region have contributed to its expansion into a dynamic market and as an attractive investment destination. ASEAN is considered one of the three growth engines in Asia-Pacific, along with China and India. As an important investment destination, Southeast Asia offers many opportunities to businesses. A projection by the Asian Development Bank (ADB) indicates a 5.2% growth for developing economies in Southeast Asia for 2022.
Southeast Asia has a thriving plastics market reflecting the strong contributions of the plastics industry. The region's plastics market is projected to grow at a CAGR of over 6% globally during the period 2022-2027, according to Mordor Intelligence. Rising demand from end-user industries such as packaging, electrical & electronics, as well as construction industry are driving the plastics market growth. Despite the negative impact of the COVID-19 pandemic, the plastics industry has been resilient and continues to boost growth in the region.
Southeast Asian countries' plastics industry has also become more competitive globally owing to the significant advances in production adopted by domestic companies and the technology transfer from international companies that have relocated their operations into various countries within the region. The plastics industry has helped support the expansion of Southeast Asian countries' end-user industries to become globally-competitive.
For instance, Thailand's petrochemical industry has been supporting plastics production which in turn has contributed to the country being a vital hub for vehicle and automotive parts in the region. The Thai automotive industry creates opportunities for injection molding, surface coating processes, laser welding and other processes, as well as specialty plastic compounds such as reinforced plastics and composites, flame-retardants, coatings, etc. that are applied in the production of automobiles and auto parts.
Thailand has a thriving automotive sector supported by its plastics industry.
Indonesia’s plastics packaging sector dominates the region and is projected to grow from 139.9 billion units in 2020 to 157.9 billion units by 2025, or a CAGR of 2% over the period 2020 - 2025, according to a study by Reportlinker. Rising consumer spending has pushed demand for food & beverage, household goods, and other products that require flexible packaging, rigid packaging and other types of packaging products. As the largest market in Southeast Asia, Indonesia's population of 273 million presents opportunities for food & beverage, packaging products, household goods, electrical & electronics, etc.
Malaysia's plastics market was valued at over US$3.2 million in 2020 and is projected to grow annually by 3% from 2021 - 2026, according to Mordor Intelligence. Packaging accounts for the largest application for plastics as demand for food and beverage packaging remains high.
Packaging industry is one of the major consumers of plastics in Indonesia and Malaysia.
The plastics industry in Singapore is a high-tech and capital-intensive industry providing much-needed R&D inputs for Singapore's various industries, among them, electronics and biomedical sciences industries. Singapore depends on high-performance plastic materials for both research and industrial use – with significant strides achieved in 3D printing and medical products manufacturing.
Singapore has played a key role in R&D for the region's plastics industry.
The Philippines' plastics market is emerging with growth projected to reach 5% yearly up to 2026, based on estimates by Mordor Intelligence. While the pandemic has resulted in longer-than-expected lockdowns that disrupted business activities in automotive, transportation and other key industries, the country's packaging industry posted substantial growth due to the strong e-commerce transactions and lucrative smart packaging market.
The Southeast Asian plastics industry continues to face many challenges, one of which is that over 31 million tons of plastic waste is generated annually by the 10 countries in the region. Indonesia, the Philippines, Thailand and Vietnam are among the top polluters in the world. Thus, with growing concerns over the impact of plastic waste on the environment, Southeast Asian countries agreed to adopt a more aggressive approach towards plastic disposal and waste management, while at the same time becoming more focused on its goal to achieve a circular economy.
The ASEAN member countries are now undertaking a regional action plan to combat marine debris, with the five-year plan aimed at implementing solution-focused joint strategy to reduce plastic pollution. These actions include guidelines to phase out single-use plastics, harmonize policies on recycling and plastics packaging standards, and strengthen regional measurement and monitoring of marine plastics waste. These coordinated measures are also expected to generate innovations, investments and training.
The ASEAN member countries are now undertaking a regional action plan to combat marine debris and reduce plastic pollution.
The challenge to the region's plastics industry to take an active part in waste management and recycling of plastics waste has been met by several initiatives. The World Bank conducted a series of studies on the untapped economic potential of plastic circularities in three ASEAN countries, Malaysia, Philippines, and Thailand in March 2021. The studies revealed that over 75% of the material value of plastics, amounting to US$6 billion per year, is lost when single-use plastics are discarded rather than recovered and recycled.
Currently, countries in ASEAN have taken on the challenge and this has created opportunities for business offering or keen to develop technologies needed to achieve their sustainability goals.
Thailand has been making moves to have all its plastic waste recycled by 2027 by raising its recycling capacity;
Indonesia's goal aims to reduce marine plastic waste by 70% by 2025 and free the country from plastic pollution by 2040;
Singapore has seen the need to raise its recycling capacity and utilize advance post-recycling technology to increase the use of recycled plastics as it targets zero waste;
The Philippines is now embracing the latest recycling technologies to reduce and reuse plastics;
Vietnam has taken steps forward to establish its first zero plastic waste city
As Southeast Asian countries realize the importance of meeting today's production and environmental challenges, these can also serve as opportunities for those offering highly advanced technologies and production techniques.
At CHINAPLAS 2022, visitors from Southeast Asia and other countries will witness how future challenges in production and environment protection can be met by innovative solutions designed to support the region's businesses.
For more information, visit: www.chinaplasonline.com.
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