While the previous annex introduced the industry sector in Thailand, this one takes a closer look at the petrochemicals and plastic value chain. It provides key data and characteristics across the value chain, outlines the main national strategies and policies targeting these sectors, as well as the industrial players in the country and the challenges they face.
Implementing the OECD Framework for Industry’s Net‑zero Transition in Thailand
Decarbonising the Petrochemical Sector and Plastics Value Chain
Petrochemicals are the backbone of countless industries and the economy. They are essential for producing plastics (used in packaging, construction, electronics, automotive), synthetic fibers (for clothing, industrial textiles), fertilizers (supporting global agriculture), pharmaceuticals, paints, lubricants, solvents and some fuel types. These materials are deeply embedded in our daily life, making petrochemicals critical to economic development, infrastructure and innovation.
The petrochemical and plastic value chain includes multiple building blocks, from upstream to final products. Its complexity stems not only from this diversity of products involved all along the value chain, but also from the variety of industrial processes underpinning their production (e.g. feedstock processing, steam cracking, catalytic reforming, production of intermediate chemicals, polymerisation, plastic conversion ...). As such, petrochemicals and plastics should not be viewed as a single industry sector, but rather as two distinct branches. Likewise, within the petrochemical sector, petrochemical products have distinct market dynamics and environmental challenges.
Figure 2.1 provides an overview of the conventional1 petrochemical and plastic value chain (namely fossil-fuel based and non-biodegradable plastics, which represented more than 99% of global plastic production in 2024 (European Bioplastics, 2024[1])). The main building blocks of the value chain can be summarised as follow:
Feedstock Production: At the very upstream of the value chain lies feedstock production, typically derived from fossil fuels. Feedstock constitutes the raw material for petrochemicals production and common feedstocks include natural gas and its products (ethane and propane), naphtha (from crude oil distillation), coal and gas oil.
Upstream Petrochemical Production: Upstream petrochemical industries use these feedstocks to produce basic chemical precursors. These are primarily divided into two groups based on molecular structure and derived from the conversion of feedstocks: i) olefins, including ethylene, propylene and mixed C4 chemicals and ii) aromatics, such as benzene, toluene and xylene. Different industrial processes can be used to produce basic chemicals - depending on the type of products and feedstock - among which steam-cracking is the most common. Other processes include catalytic reforming at refineries, toluene disproportionation and transalkylation. These basic chemicals serve as inputs for petrochemical products downstream in the value chain.
Intermediate Petrochemical Processing: Intermediate petrochemical industries process the olefins and aromatics to produce more complex compounds. This includes combining them with other chemicals to form intermediate products, like vinyl chloride and styrene, which are key inputs for various manufacturing applications. These intermediates are then supplied to downstream industries for further transformation.
Downstream Petrochemical Manufacturing: Downstream petrochemical industries use upstream and intermediate inputs to manufacture finished goods for end-use sectors. These products fall into four main categories: (1) plastic resins, such as polyethylene (PE), polypropylene (PP), Polyvinyl Chloride (PVC), Acrylonitrile Butadiene Styrene (ABS), Polyethylene Terephthalate (PET) and Polystyrene (PS), which are used extensively in packaging, automotive and construction; (2) synthetic fibers, including polyester and nylon, primarily used in textiles and packaging; (3) synthetic rubber and elastomers, such as Styrene-Butadiene-Rubber (SBR), critical in automotive parts and tires; and (4) synthetic coatings and adhesives, like polycarbonate and polyvinyl acetate, for applications in construction and other industrial sectors.
Plastic conversion: The transformation of resins into final products involves techniques such as injection moulding, blow moulding, compression moulding and extrusion, each selected based on the product’s functional requirements.
End-of life management of plastic products: End-of-life management of plastic products is a critical aspect of sustainable waste handling. This phase is crucial as improper handling contributes to generating plastic pollution, GHG emissions and resource loss. Main end-of-life options currently deployed include recycling, upcycling, incineration (including waste-to -energy) or landfilling. To mitigate environmental impacts, the goal is to foster a closed-loop system where plastics are reused, recycled, or upcycled.
Thailand’s petrochemical and plastic value chain is key in the national economy. The plastics industry accounted for 6.7% of Thailand’s national GDP in 2023, serving a crucial link between the upstream petrochemical sector - which supplies upstream inputs of resins – and downstream industries that use finished and semi-finished plastic products (Krungsri, 2025[2]). The sector directly employed approximately 200 000 people, with an estimated additional one million working indirectly for the sector (SWITCH-Asia, 2025[3]).
Structure of the capacity, production and consumption
Accounting for 34.6 Mtpa in 2022, Thailand's petrochemical sector is the largest in the ASEAN region and ranked 16th globally (Krungsri, 2024[4]). The sector has experienced a threefold increase in total capacity since the 2000s, a period characterised by the expansion of Thailand’s manufacturing base and a strategic shift toward export-oriented production (Tanthapanichakoon, 2019[5]).
The total capacity is comprised of 13.2 Mtpa of capacity for upstream products (38% of total capacity), 8.5 Mtpa of capacity for intermediate products (25%) and 12.5 Mtpa of capacity for downstream products (37%) (Petrochemical Industry Club, 2022[6]). Ethylene plays a central role in the upstream segment, representing approximately 40% of the total upstream petrochemical capacity (5.5 Mtpa), which places the country 9th globally in terms of ethylene production capacity. It is followed by propylene, which accounts for around 25% of the total upstream petrochemical capacity. In the downstream segment, PE products represent over one third of the total downstream capacity, while polypropylene (PP) accounts for roughly 20% (Figure A C.1).
Production of upstream petrochemical products in Thailand reached around 13.2 Mtpa in 2022 (Krungsri, 2023[7]). Among the most produced upstream petrochemical products, ethylene accounted for the largest share of the production (around 4.5 Mtpa), reflecting its predominance in terms of capacity. Figure A C.2 highlights that domestic consumption of major upstream petrochemical products remains slightly below production levels over the years. This pattern underscores the strong integration of Thailand’s petrochemical value chain, where most of the upstream output is absorbed by intermediate and downstream processes within the country.
The trend is reverse on the downstream segment (see Figure A C.3 highlighting some of the major downstream products). Less than half of the total downstream products (45%) is consumed domestically, primarily by packaging (38%), textiles (18%), automotive (12%) and electronics (11%) industries. The remaining 55% of downstream production is exported, largely in the form of plastic resins or pellets (Krungsri, 2024[4]).
Production and consumption of petrochemical products
Note: Selection of most produced and consumed products, based on data available
Source: Authors, based on data analysis from (Delegation of Thailand, 2024[8])
Note: Selection of most produced and consumed products, based on data available
Source: Authors, based on data analysis from (Delegation of Thailand, 2024[8])
Thailand’s plastic use per capita remains high compared to other regions. In 2022, it reached 84 kg/capita, significantly higher than the world average (63 kg/capita) and the ASEAN region (43 kg/capita). Similarly, the plastic intensity - measured at 4.9 kg per thousand USD in Purchasing Power Parity (PPP) - exceeded the global average of 3.6 kg/kUSD and the ASEAN average of 3.4 kg/kUSD (OECD, 2025[9]).
When considering current policies, plastics use is projected to grow by around 50 % between 2022 and 2050 (Figure A C.4). The OECD Regional Plastic Outlook for Southeast and East Asia provides a roadmap to support the design and implementation of plastic policies in the region to end plastic pollution (OECD, 2025[9]). According to the baseline scenario (which considers the implementation of current policies), plastics use in Thailand would increase from 6 Mt in 2022 to around 9 Mt in 2050. This also represents a 60% growth of per-capita plastic use under the same period. Under this scenario, primary plastics would represent 85% of domestic plastic production in 2050 (Figure A C.4) (OECD, 2025[9]).
Note: The baseline scenario from the OECD Regional Plastic Outlook for Southeast and East Asia shows the projections under current policies. Primary (or virgin) plastics refer to plastics that are manufactured from fossil-based (e.g. crude oil) or biobased (e.g. corn, sugarcane, wheat) feedstock that has never been used or processed before. Secondary plastics refer to recycled plastics. Source: (OECD, 2025[9])
Under a high stringency scenario (where all ASEAN Plus Three (APT) countries undertake ambitious action across the plastic life cycle), plastic uses in Thailand would fall by more than 25% between 2022 and 2050 (OECD, 2025[9]). In such scenario, secondary plastics use would grow rapidly, reaching nearly 50% of domestic production.
In both scenarios (baseline and high stringency), primary plastics would be still part of the production landscape by 2050. This further highlights the need to decarbonise primary plastic production to support the country in reaching its climate goals, while addressing plastic pollution.
Trade balance of plastic-related goods
Trade of plastic-related goods’ trends reflect Thailand’s strong orientation toward exports. In 2022, Thailand’s plastic-related exports totalled USD 34.6 billion, significantly outpacing imports of USD 18.7 billion (SWITCH-Asia, 2025[3]). This resulted in a robust trade surplus of nearly USD 16 billion, confirming Thailand’s position as a net exporter of plastic-related goods and products. On the one side, primary plastic forms (USD 13.5 billion) and final manufactured plastic goods (USD 13.45 billion) dominated exports, jointly accounting for nearly 80% of total plastic-related exports. Smaller but still notable contributions came from feedstocks (USD 1.94 billion), plastic additives (USD 2.66 billion) and intermediate goods (USD 1.2 billion), while exports of plastic waste were lower (USD 68 million). On the other side, imports were led by plastics in primary forms (USD 6.85 billion) and final manufactured goods (USD 5.2 billion), followed by feedstocks, additives and intermediates.
Competitiveness challenges facing Thailand’s petrochemical industry
In 2024, demand from key downstream sectors - packaging, electronics and consumer goods - remained weak, driving down prices across major product groups. This was worsened by widespread inventory reduction among downstream manufacturers, which especially affected olefin-based production.
Furthermore, Thailand’s petrochemical sector faces structural challenges due to current declining demand in Asia, coupled with a significant oversupply resulting from new production facilities across the region. These factors have led to persistently weak profit margins, as well as multiple plant closures and industry restructuring efforts. Thailand also faces pressure from the growing petrochemicals and plastic resins’ self-sufficiency of China ( a key export market for Thailand).
The decreasing availability of domestic natural gas reserves in the Gulf of Thailand poses further competitiveness challenges. As a result, the sector is becoming more reliant on imported feedstocks like naphtha, which are subject to global price fluctuations. This shift has driven up production costs, squeezed profit margins and undermined the industry's cost competitiveness. In response to elevated naphtha prices in Asia and declining olefin margins, the country has increasingly turned to lighter feedstocks (i.e. gas-based).
To counteract weak demand and regional oversupply in petrochemicals, Thailand aims to focus on the development of low-carbon and specialty chemicals. These products include low-carbon polymers, recycled plastics and biopolymers. They also offer an opportunity to align with tightening domestic and international environmental regulations.
Energy and CO2 emissions profile
Petrochemicals and chemicals represented 55%2 of the total final energy consumption from the manufacturing sector in 2023 (i.e. 26 Mtoe, see Annex B), as well as 12% of the total direct energy related CO2 emissions from the industry sector (i.e. nearly 6 GtCO2). These shares have remained stable since 20213. If emissions from the use of chemicals (e.g. CO2 emissions from urea, CO2 released from solvent use) and the combustion of carbon stored in plastics during waste management would have been accounted, the emissions of the sector would be much higher.
Across the value chain, upstream petrochemicals are the most energy consuming and emission intensive products, driven by olefins (Figure A C.5 and Figure A C.6) (Kanchanapiya et al., 2014[10]; Tantisattayakul et al., 2016[11]). Available estimates indicate that the upstream petrochemical industry accounted for 62% of GHG emissions of Thailand’s petrochemical industry, whereas the intermediate and downstream groups were responsible for around 20% and 17%, for the period 2005-2010 (Kanchanapiya et al., 2014[10]).
Note: Average SEC by product, based on 2005-2010 data. ETH: ethylene, PPL: propylene, Tol: Toluene, Px: Paraxylene, MC4: Mixed C4 hydrocarbons
Source: (Kanchanapiya et al., 2014[10])
Note: Average carbon intensity by product, based on 2005-2010 data. ETH: ethylene, PPL: propylene, Tol: Toluene, Px: Paraxylene, MC4: Mixed C4 hydrocarbons
Source: (Kanchanapiya et al., 2014[10])
The steam cracking process is the main source of CO2 emissions for olefin production, with more than 80% of the direct CO2 emissions arising from fossil-fuel combustion in the furnaces (Mynko et al., 2022[12]). Steam crackers in Thailand are quite new when one considers that the average lifetime of a steam cracker is 45 years (Worrell and Biermans, 2005[13]). As of 2025, 40% of the total steam cracker capacity in Thailand is 15 years and 20% under 5 years (Figure A C.7). The age profile of the fleet highlights the crucial need to develop low-carbon options to decarbonise these existing assets. Both ethane-based and naphtha-based crackers are operating in Thailand. However - as mentioned earlier - in response to persistently high naphtha prices in Asia over recent years, the country is progressively shifting toward lighter feedstocks.
Source: Authors, based on data from the Petroleum and Energy Institute of Thailand.
The case of bioplastics
Bioplastics cover a family of various materials, offering functionality and quality nearly similar or identical4 to conventional plastics. Plastic materials are defined as bioplastics if they are either biobased5, biodegradable6 or both (Figure A C.8) (European Bioplastics, 2022[14]). At the global scale, they represented less than 1% of global plastic production in 2024 (European Bioplastics, 2024[1]).
Source: Authors, based on (European Bioplastics, 2022[14]).
Thailand is the world third largest producer of bioplastics, after Brazil and the United States. Thailand’s current bioplastic production capacity is around 95 kilotonnes per annum (ktpa), with main products including polylactic acid (PLA) (80% of the total capacity), polybutylene succinate (PBS) (around 20%) and thermoplastic starches (TPS) to a lesser extent. More than 90% of Thailand’s bioplastic production is exported. Exports experienced sustained growth between 2017 and 2022, with a 25% Compound Annual Growth Rate (CAGR) in terms of value and 23% CAGR in terms of volume (Yamada Consulting Group, 2024[15]). This growth was driven by increased PLA production, following the commissioning of a 75 ktpa facility in 2018.
Thailand has the ambition to become a bioplastic hub for the ASEAN region by 2027. While bioplastic production currently represents around 1% of total plastic production in Thailand, the bioplastic industry plays a strategic role for the country’s industrial and economic growth. In 2018, the Ministry of Industry announced the ‘Measures for the Development of Bio Industry in Thailand 2018-2027’ as part of the country’s effort to promote a biobased economy. Under these measures, Thailand aims to position itself as the Bio Hub of ASEAN by 2027, including for bioplastics, biochemicals and biopharmaceuticals. By fostering bioeconomy-related activities, Thailand aims to create new, value-added economic sectors and generate highly skilled jobs, as well as boost exports of domestic bio products.
Thailand’s bioplastic industry can build on abundant domestic raw materials. Thailand has plenty of sugarcane, molasses and cassava raw materials to supply the bioplastic industry. Only 1% of Thailand’s sugarcane and cassava are used as the main feedstocks for bioplastics production (Thailand Board of Investment, 2019[16]).The country produces around 30 Mt/year of cassava (second largest producing country in the world), 92 Mt/year of raw sugarcane (4th producing country in the world) and 3.6 Mt/year of molasses annually (based on 2022-2024 data and (DEDE, 2024[17]). Thailand is also the world’s largest exporter of cassava, as well as the third largest exporter of sugar globally (Yamada Consulting Group, 2024[15]).
While most bioplastics have lower GHG emissions compared to fossil fuel-based plastics, other environmental challenges need to be considered. The use of agricultural feedstocks raises concerns about land and water use, food security, environmental degradation from farming practices or particulate matter emissions (Asian Development Bank, 2023[18]). Furthermore, infrastructure gaps in composting and recycling biodegradable plastics may further limit their benefits. If sent to a landfill, PLA can for instance have equal or higher life cycle GHG emissions than PET, depending on the conditions of the biodegradation process. Despite these challenges, technological innovations, policy support and consumer education can help improving the environmental performance of bioplastics. With the right systems in place, they can play a key role in supporting Thailand’s BCG Economy Model.
End of life management of plastic products
The country’s high plastic usage has led to a large volumes of plastic waste, with only a small share of waste recycled into new plastics. Sectors such as food and beverage, retail, tourism and agriculture make extensive use of short-lived plastic packaging, disposable items and single-use plastics. In 2022, plastic waste per capita in Thailand reached 76 kg/cap, which is significantly higher than the ASEAN and global average (respectively 36 kg/cap and 50 kg/cap) (OECD, 2025[9]). Thailand’s recycling rate was around 12% in 2022 (through mechanical recycling), slightly higher than the global average (10%). However, mismanaged waste7 remains high, with sanitary landfilling accounting for 52% of total waste generated (i.e. the largest share of end-of life fates in the country) (OECD, 2025[9]). Thailand’s waste management system is facing significant challenges, with limited waste collection coverage and recycling facilities. These issues are especially severe in rural areas, where formal waste management services are often limited. Moreover, improper handling of plastic waste contributes substantially to increasing plastic pollution.
Thailand is among the world’s top ten countries with high levels of plastic leakage into the oceans (Thai-German Cooperation, 2025[19]). In 2022, Thailand’s aquatic leakage represented 2 kg/capita and 119 t/kUSD in PPP, namely above the global average (respectively 0.9 kg/capita and 52 t/kUSD in PPP) (OECD, 2025[9]). Plastic pollution in marine environment poses a serious threat to biodiversity and causes substantial economic losses, with long-lasting consequences. Over time, some of this plastic breaks down into microplastics, which are more easily ingested by aquatic species. Marine debris endangers coastal ecosystems, disrupts fisheries and undermines tourism. Communities and businesses that depend on the ocean for their livelihoods and production are particularly vulnerable to the harmful impacts of plastic pollution (OECD, 2025[9]). To mitigate waste mismanagement and plastic pollution, Thailand has introduced strategic roadmaps (see below in ‘Key national strategies and policies’).
National strategies and plans that (directly or indirectly) drive the decarbonisation of the industry sector are described in Annex B and in Annex D. These plans will therefore be reflected in all industry sub-sectors, including to petrochemical and plastic sectors. In addition, national strategies and policies that specifically target petrochemicals and the plastic value chain - and which are relevant to the decarbonisation of these sectors - are described below.
Investment incentives
The petrochemical and plastic sectors benefit from investment incentives provided under the Board of Investment (BOI). The eligible activities are classified into different groups, each with specific incentives (Table A C.1). These incentives include Corporate Income Tax (CIT) exemptions or reductions, as well as import duty exemptions for machinery and raw materials under certain conditions. In addition, projects located within the EEC can benefit from extended incentives, including a 50% tax reduction for two years following the exemption period. EEC investment incentives aim to support the BCG Economy Model, by especially targeting projects underpinned by sustainability or innovation dimensions. This tax incentive can be extended for three more years (or up to 5 years) if the activities are eligible for the Competitiveness Enhancement incentives.
Note: *CIT exemption accounts for 100% of investment (excluding cost of land and working capital). **Exemption of 1) import duty on machinery and 2) import duty on raw or essential materials used in manufacturing export products for 1 year, which can be extended as deemed appropriate by the Board. *** Based on BOI. 2022. BOI Announcement No. 17/2565 on Investment Promotion Measures in the Eastern Special Development Zone (EEC). EEC Incentives for projects located in EECa, EECi, EECd, EECmd, EECg and EECtp. Another additional three years of 50% reduction can also be added on top of this incentive if the activities are eligible for the Competitiveness Enhancement incentives (see BOI Announcement No. 10/2565 on Measure for Competitiveness Enhancement.
Plastic waste management
Thailand has introduced strategic roadmaps to address waste management and plastic pollution. Thailand's Roadmap on Plastic Waste Management (2018-2030) serves as a framework and sets the direction for the prevention and resolution of the country's plastic waste management issues (Ministry of Natural Resources and Environment, Pollution Control Department, 2018[23]). It establishes two main targets: i) reduce and replace some single use plastic by using environmentally friendly products, including bans on certain single-use plastic items by 2022; and ii) make 100% of target plastic waste circular by 2027.
This roadmap is operationalised by Thailand’s Plastic Waste Management Action Plans Phase I (2020-2022) and Phase II (2023 - 2027) (Ministry of Natural Resources and Environment, Pollution Control Department, 2020[24]; Ministry of Natural Resources and Environment, Pollution Control Department, 2023[25]). These action plans aim to improve plastic waste management through upstream and downstream strategies. The upstream measures promote eco-friendly product design, sustainable consumption, reusable products and packaging and environmentally friendly alternatives. Downstream measures support recycling, energy recovery and EPR. These plans will also establish plastic labelling to improve sorting and management of plastic wastes. These action plans actively promote bioplastics.
In addition, Thailand is developing an EPR scheme8 through the Sustainable Packaging Management Act (Ministry of Natural Resources and Environment, Pollution Control Department, 2024[26]). This Act aims to engage the industry in managing packaging throughout its entire life cycle from design and distribution to usage and disposal. By implementing the EPR approach, the Act seeks to implement mandatory obligations for producers to manage packaging waste through recovery and recycling, as well as to establish Producer Responsibility Organisations (PROs) to handle waste management on companies’ behalf. Upon implementation, the use of packaging based on the principles of environmentally friendly design and material selection will be promoted.
At the international level, Thailand stated its support for the development of a legally binding international instrument to end plastic pollution. During the fifth session of the Intergovernmental Negotiating Committee (INC-5) of the Plastics Treaty, the country emphasised the need for covering the full life cycle of plastics. Thailand also called for considering national circumstances, the inclusion of financial support mechanisms, the promotion of technology transfer, capacity building and public-private partnerships (UNDP, 2024[27]). However, as of September 2025, the global negotiations for a legally binding treaty remain stalled, following the outcomes of the latest round of talks - INC-5.2 - held in Geneva in August 2025.
Petrochemical industry
Thailand petrochemical industry is characterised by two main integrated companies across the value chain: PTT group and SCG group. The PTT Group is a leading integrated petrochemical producer in Thailand, with companies such as PTTGC, IRPC, TPX and HMC involved in the manufacture of olefins and aromatics. The group also has a significant presence in petroleum exploration and production (through its subsidiary PTTEP), as well as in the production of downstream products such as PE, PP and PVC. SCG Chemicals (SCGC) is the other large integrated petrochemical company in Thailand. A subsidiary of Siam Cement Group (SCG), the company operates across the full petrochemical value chain with a strategic emphasis on specialty and performance chemicals. Other companies, including multinational and domestic producers such as Indorama, Vinythai and TPT, contribute to specific segments of the market, particularly in the production of PET, PVC and specialty chemicals. While these firms have a narrower product portfolio, they remain integral to the diversification and competitiveness of the sector.
Major developments in the petrochemical sector in Thailand are centred in the Map Ta Phut Industrial Estate, Rayong Province, where most petrochemical manufacturing plants are located. Within the estate, the Map Ta Phut Industrial Port Phase 3 Development Project has been under construction since 2023 to enhance the annual shipment of natural gas and liquid raw materials for the petrochemical sector, which will be able to handle 31 million tonnes of natural gas and liquefied raw materials per year. This development project is expected to be complete and start its operation in 2027 (EEC, 2019[28]).
Individual companies have also launched their on-going projects to expand their production capacity and increase the flexibility of their steam-crackers. For instance, SCGC launched the Debottleneck Project at the Map Ta Phut Olefins complex, ultimately increasing their olefins production capacity by 350 ktpa (SCG, 2021[29]). PTTGC launched the Olefins 2 Modification Project to increase steam cracker feedstock flexibility using propane. In addition, PTTGC is advancing its strategy to establish Map Ta Phut as a premier Specialty Hub by collaborating with government agencies to attract top-tier global partners and strengthen Thailand’s competitiveness throughout the supply chain. The goal is to build a fully integrated specialty chemicals ecosystem and attract international investments.
Additionally, Thailand’s petrochemical sector benefits from the active engagement of key industry associations that provide crucial support in the areas of policy advocacy and technological development, including the Petrochemical Industry Club (FTIPC), operating under the Federation of Thai Industries (FTI). It serves as a central co-ordinating body for the country’s petrochemical sector and organises major industry forums such as the Asia Petrochemical Industry Conference (APIC), disseminates market and trade intelligence and supports regulatory preparedness among members. Also, the Petroleum and Energy Institute of Thailand (PEIT), formerly known as PTIT, functions as a non-profit institution promoting the advancement of the petroleum and petrochemical sectors. PEIT supports R&D, facilitates multi‑stakeholder dialogue to inform evidence-based policymaking and contributes to human capital development through training and information services.
Plastic industry
Resin production is being driven primarily by large-scale producers as identified in Table A C.2. The production capacities of resin production of the main actors are presented in Table A C.2. PTT and SCG groups are actively focusing on specialty polymers, recycling technologies and eco-friendly materials. Some key projects include recycled PET and High-Density Polyethylene (HDPE) recycling plant by ENVICCO, a joint-venture company found by PTTGC and the Austria-based ALPLA Group. ENVICCO is Thailand's largest food-grade plastics recycling plant for bottle-to-bottle applications with an annual production capacity of 45 000 tonnes (link). As for specialty polymers, SCGC has initiated in 2024 the project ‘Driving Thailand's Automotive Industry towards Low-Carbon Industry’, aiming to develop low‑carbon polymers for automotive parts and advanced materials for electric vehicle batteries (SCG, 2024[30]).
Source: Authors, based on companies’ websites and annual reports.
Further down in the value chain, Thailand recorded more than 3200 plastic converters in 2023, of which nearly 90% are SMEs. The predominance of SMEs is largely due to relatively low entry barriers: the plastic conversion industry is characterised by moderate initial investment requirements and relies on established and commercially mature technologies. However, as production is focused on standard commodity products, this leads to intense competition and slim profit margins. In terms of geographical coverage, most players (80%) are concentrated in central Thailand, particularly within the Bangkok Metropolitan Region, as well as Samut Prakan and Samut Sakhon.
Bioplastic industry
Thailand is advancing its bioplastic industry through a growing number of companies and investments in industrial facilities (Table A C.3). PLA in Thailand is mainly supplied by TotalEnergies Corbion. TotalEnergies Corbion’s manufacturing facility has been operating since 2019 with a total capacity of 75 000 tonnes per year. The company uses sugarcane as raw material and produces commercialised PLA in pellet forms (TotalEnergies Corbion, 2021[31]). A new PLA facility by NatureWorks, a joint venture between PTTGC and Cargill, is also being established. In 2024, the company secured a USD 350 million (THB 12.6 billion) loan from Krungthai Bank to build a fully integrated PLA complex with an annual production capacity of 75 000 tonnes. The facility will include manufacturing plants for lactic acid, lactide and PLA polymer, utilising sugarcane as the primary raw material (GC, 2024[32]).
Bio-polybutylene succinate (bio-PBS) in Thailand is produced by PTTMCC Biochem, which is the first bio-PBS manufacturer in the world. The company is a joint venture between Thailand's PTT Global Chemical PCL and Japan's Mitsubishi Chemical Corporation. Its commercial production has been ongoing since 2017 with a capacity of 20 000 tonnes per year. Renewable resources such as sugarcane and cassava are used as raw materials and the bio-PBS products are sold in pellet forms (Thailand Board of Investment, 2017[33]; PTT MCC Biochem, n.d.[34]).
TPS production in Thailand is led by two major companies: SMS Corporation and ThaiWah PCL. SMS Corporation is a global leader in the modified tapioca starch industry. The company started manufacturing TPS from tapioca in 2019. Their commercial products include TPS pellets, TPS compounds and consumer products such as compostable plastic bags, films, straws and paper-coated containers (SMS, n.d.[35]; Institute of Digital Technology for Science Services, 2019[36]). ThaiWah PCL is another leading business in starch industry in Thailand. Its subsidiary company, ROSECO, was established in 2022 to produce tapioca-based TPS and TPS compounds with a starting capacity of 3 000 tonnes per year. ROSECO’s resins are sold in pellet forms that are suitable for conversion into compostable films and other rigid products (Thai Wah, n.d.[37]; MGR Online, 2022[38]).
Furthermore, there is currently one bio-polyethylene flagship project in development, led by Braskem Siam Company, which is a joint venture between SCG Chemicals (SCGC) and the Brazil-based company Braskem. The investment began in 2023, and the construction is expected to be completed by 2027 with a capacity of 200 000 tonnes of bio-ethylene per year. This bio-ethylene, derived from bioethanol produced from sugarcane, will be supplied to SCGC’s existing plant to produce bio-based polyethylene (bio-PE) plastic pellets (Braskem, 2023[39]). The company has set a goal of producing 1 million tonnes of green polymers annually by 2030 (ICIS, 2024[40]).
Source: Authors, based on companies’ websites and annual reports.
The industry is also supported by the Thai Bioplastics Industry Association (TBIA), a key organisation dedicated to advancing the development and adoption of bioplastics. TBIA serves as a central platform for collaboration across stakeholders along the bioplastics value chain. Its efforts are closely aligned with the BCG Economy Model, focusing on policy support to attract investments, market development to expand both domestic and international reach, as well as public awareness campaigns.
References
[18] Asian Development Bank (2023), “Is There a Case for Bioplastics? Experience from Thailand”, ADB Briefs No. 269, https://www.adb.org/sites/default/files/publication/921506/adb-brief-269-case-bioplastics-experience-thailand.pdf.
[39] Braskem (2023), Braskem and SCG Chemicals join forces to advance in the bio-based Ethylene project in Thailand, https://www.braskem.com.br/imgreen/details-news/braskem-and-scg-chemicals-join-forces-to-advance-in-the-bio-based-ethylene-project-in-thailand.
[17] DEDE (2024), Promotion and Current Status of Ethanol Utilisation, https://www.dede.go.th/uploads/ethanol_jan_67_caa17e0c10.pdf.
[8] Delegation of Thailand (2024), Thailand’s Petrochemical Country Report 2024, http://www.ftipc.or.th/upload_file/apic_report/apic_report_TH_06062024-15032406.pdf.
[28] EEC (2019), Map Ta Phut Industrial Port Phase 3, https://eeco.or.th/en/map-ta-phut-industrial-port-phase-3.
[1] European Bioplastics (2024), Bioplastics market development update 2024, https://www.european-bioplastics.org/market/.
[14] European Bioplastics (2022), What are bioplastics?, https://docs.european-bioplastics.org/publications/fs/EuBP_FS_What_are_bioplastics.pdf.
[32] GC (2024), NatureWorks’ Ingeo PLA Manufacturing Expansion Attracts Record Financing from Krungthai Bank PCL of Thailand, https://www.pttgcgroup.com/en/newsroom/news/1359/natureworks-ingeo-pla-manufacturing-expansion-attracts-record-financing-from-krungthai-bank-pcl-of-thailand.
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← 1. Alternative and bio-based production processes are covered and analysed in chapter 2 and in Annex E.
← 2. When considering non-energy use.
← 3. IEA World Energy Balances 2025
← 4. Depending on the type of bioplastics.
← 5. Namely derived from biomass feedstocks.
← 6. Biodegradation is a chemical process during which microorganisms that are available in the environment convert materials into natural substances such as water, carbon dioxide and compost (artificial additives are not needed).
← 7. Mismanaged waste includes all waste that is not handled in an environmentally safe manner, including uncollected waste as well as waste that is collected but later handled improperly for instance via open burning, unsanitary landfilling or disposal in dumpsites, or dispersal in the environment (OECD, 2025[9]).
← 8. EPR schemes are “an environmental policy approach in which a producer’s responsibility, physical and/or financial, for a product is extended to the post-consumer stage of a product’s life cycle” (OECD, 2025[41]).