The COVID-19 crisis had a significant impact on the recycled thermoplastic market with the sudden drop in demand across several end-user industries owing to the temporary shutdown of production units. The demand for thermoplastics dropped notably across the automotive, aerospace, and construction sectors. However, the need for novel thermoplastic polyethylene gloves made using TPEs increased dramatically during the pandemic to cater to applications in medical and food handling. The growing emphasis on the prevention of contamination and the spread of infectious diseases also prompted several healthcare and food companies to ramp up the use of disposable gloves to ensure adequate safety.

Thailand has massive potential to transform itself into a key global production base for bioplastics and converted products thereof. Speaking to PlasticsToday, Plastics Institute of Thailand Executive Director Dr. Kriengsak Wongpromrat said that Thailand produced around 17 million tonnes of sugar in 2018 and exported around 11 million tonnes. “Taking 100,000 tonnes for the production of polylactic acid (PLA) biopolymer is not going to affect the supply of sugar for food applications, especially since consumption of sugar may be adversely affected by a ‘sweet tax’ that Thailand plans to introduce.” Alternative feedstocks such as rice, palm oil, tapioca, and cassava are also available.

Stephen has been with PlasticsToday and its preceding publications Modern Plastics and Injection Molding since 1992, throughout this time based in the Asia Pacific region, including stints in Japan, Australia, and his current location Singapore. His current beat focuses on automotive. Stephen is an avid folding bicycle rider, often taking his bike on overseas business trips, and is a proud dachshund owner.

While most bioresins are currently exported, the long-term strategy is to convert the resin domestically into finished and semi-finished plastic products. “We want to try to maximize the value chain of biopolymers but currently have to accept that Total Corbion is mainly exporting to EU and other countries,” says Wongpromrat. “The institute is working with small and medium-scale processors to support them in developing bioplastics conversion expertise. We’ve worked with 82 converters to date in developing products such as bags and thermoformed trays and bowls, but we need more to participate.”

Wongpromrat adds that sugar can generally be sourced in proximity to bioresin production plants. Currently, Total Corbion PLA, a 50/50 joint venture between Total and Corbion, operates a 75,000 tonnes/year PLA bioplastics plant in Rayong, Thailand but demand in Europe is so strong that the vast majority of the product is exported, leaving perhaps 1,000 tonnes of bioresin overall for the domestic market. Mitsubishi Chemical and PTT manufacture bio-based polybutylene succinate (PBS) at a 20,000-tonnes/yr joint venture plant operated by PTT MCC Biochem, also in Rayong Province. A third company, Advanced Biochemical (Thailand), produces the epoxy resin raw material epichlorohydrin from glycerol; renewable feedstock and a by-product of biodiesel and oleochemical production.

Recycled Thermoplastic Market size valued at USD 61.7 billion in 2022 and is anticipated to expand at more than 10% CAGR from 2023 to 2032. The expansion of construction activities will influence the market development.

Recycled thermoplastic market from the biodegradable type segment is projected to exhibit over 10.5% CAGR from 2023 to 2032. The growing concerns associated with the increasing plastic pollution, environmental adversities, and climate changes have prompted several public and private efforts to encourage the switch towards biodegradable plastics. Extensive R&D in the field of biodegradable thermoplastic starches is likely to foster lucrative scope for industry development. For instance, in January 2023, a team of researchers from the University of Konstanz, Germany developed a novel biodegradable plastic mimicking the thermoplastic properties of HDPE.

The rapidly expanding electrical and electronics sector across the world will complement the recycled thermoplastic market outlook. Electronics production is a relatively complex process and requires advanced designs as well as technological intervention to cater to the growing demand for next-generation devices. Thermoplastics have emerged as a promising tool that aid electronic manufacturers to keep up with the increasing need for sophistication. Thermoplastics offer exceptional durability, corrosion resistance, and the ability to withstand high temperatures.

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The Thai Government is also playing its part in developing the sector. In June, it approved tax breaks for fast food chains and other retail outlets that purchase compostable bioplastic-based packaging from local converters. Various stakeholders are also working to establish a composting infrastructure.

Due to rapid urbanization and the surging disposable incomes, the demand for consumer electronics has increased dynamically in the recent past, compelling thermoplastic manufacturers to become more environmentally sound, further influencing the adoption of effective recycling systems.

Recycled thermoplastic market from injection molding technology is slated to register 10.7% growth rate between 2023 and 2032. The surging adoption of this technology can be attributed to the growing environmental concerns associated with large volumes of thermoplastic waste. Injection molding is a widely deployed repeatable process that allows manufacturers to produce large volumes of identical plastic parts featuring high tolerances at a lower per-part cost. Injection-molded plastics offer numerous benefits including high reliability, reusability, efficiency, and compatibility for an array of materials and colors. The advent of additive manufacturing coupled with ongoing advancements in robotics and automation will spur injection molding capabilities, pushing the market expansion.

Growing concerns associated with poor quality of recycled plastics in food packaging and the consequent risk of contamination may hamper the recycled thermoplastic market outlook. Using recycled materials in food packaging has gained significant traction, however, necessitates adherence to certain environmental and health requirements. Since recycled thermoplastic comes from plastic waste, it needs adequate treatment to ensure food safety. The rising prevalence of foodborne illnesses and increasing count of product recalls in the food sector due to microbial contamination could restrain industry growth.

The country’s Board of Investment (BOI) is also actively involved with developing the bioresin sector. It operates 16 overseas offices in 11 countries, with about half of them are in countries that are leaders in bioplastic technology such as the US, Germany, France, and Japan. “So we have the best coverage to reach out to most of the top bioplastic companies around the world,” says BOI Secretary General Duangjai Asawachintachit. “With attractive investment promotion incentive packages like corporate income tax exemption, import duty exemption and exclusion from restrictions, the BOI will showcase Thailand’s potential as a regional hub for bioplastic.”

Asawachintachit adds, “Thailand is a top exporter of cassava, sugar, rice, and palm oil, has abundant raw material resources for bioplastic production. The country also has the largest petrochemical sector in ASEAN. Thus, Thailand is home to an experienced labor force that is familiar with relevant technologies and processes."

As a major sugar and palm oil producer and home to a 3,000-strong processor base, the Kingdom sees major potential for developing an integrated production base for bioresins and converted products.

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Asia Pacific recycled thermoplastic market size is poised to surpass USD 75.5 billion by 2032. APAC is expected to emerge as a prominent hotspot for recycled thermoplastics owing to massive volumes of plastic consumption in countries such as China, and India. According to the China National Resources Recycling Association, China produced approximately 60 million tonnes of plastic waste in 2020, of which only 16 million tonnes is recycled. Furthermore, as China is one of the largest plastic consumers in the world, it necessitates the rapid penetration of recycled thermoplastics to counter the growing environmental concerns.

“Many converters realize that with plastic bag bans being implemented globally, now is the time to exploit bioplastics, and we are seeing a lot of interested,” notes Wongpromrat. But he cautions that supply of bioplastics may be constrained in Thailand over the next few years. “You need two to three years to construct a new plant.”