79
JUN2017 FOOD FOCUS THAILAND
SEE THROUGH
MARKET
• PackagingSpecific toCustomizedRequirements:
Although
genericpackagingholdsa largemarketshare, intensifiedcompetition
in theE-Commercemarket is forcingmanufacturers to look formore
uniquepackaging, since thecharacteristicsof thegoods themselves
areprettymuch the same. Both sellers andbuyers are seekingnew
things,especially forgoods that represent thegood tasteof thebuyers,
suchascosmeticsand jewelry,orotherproducts thatneed to tell their
stories. Customized packagingwill no doubt receivemore attention
over time.Despiteahigher unit cost premiumover genericproducts,
suchpackaging,whenwell designed,will helpcutothercosts–using
less paper or plastic, thus saving onmaterials, making them lighter
in weight and reducing freight costs, as well as better preventing
damageduringshipment.Outstandingdesign inpackaging itself can
differentiate the products contained therein from peers, thus being
an important consideration to their use.
• Competitive Packaging Businesses:
This segment boasts
manymanufacturers. The larger companies possess economies of
scale toward production, and generally advanced technologies to
assist them and thus offer very modern designs, but they find that
SMEs’ orders for customized packaging are not high in volume. If
theycanaccommodatesmallerorders, therewillbemoreopportunities
tosell customizedpackaging in theSMEsmarket, despitehigherunit
cost.SMEspackagingproducersmayneed todevelop theirworkforce
skills inproduct design to supply suchhigh-quality products that are
expected to thriveamid rising competition inE-Commerce.
Given the promising outlook for E-Commerce, demand for
customized shipment packaging will likely increase further. This
business is now in the early stages of development, capturing only
5% of the market, which totals around THB 4.2 trillion. New
E-Commerce operators are emerging every day, and are expected
to reach1million traderswithin thenext3-5years.However, it should
be noted that good packagingmust be strong, as well as attractive
andunique toaddvalue to theproduct beingshipped, thus inevitably
enhancing product owners’ competitiveness in the E-Commerce
market.
Thriving E-Commerce, especially business-to-consumer
(B2C) trade that has grown 15-20% p.a. – reaching a
valueof THB 210billionp.a.(retail trade ingoods only) –
has substantiallybolstered salesof shipment packaging
(for B2Cuse) over recent years.KResearchexpects B2C
E-commerce shipment packaging will reach perhaps
THB 5.6billion in 2017,surging 24.4%YoY.
Additional Information
1
First layer of packaging indirect contact with theproduct, suchas toothpaste
tubes, shampoobottles, tea/coffee sachet.
2
The layer of packaging that encloses theprimary product tobepresentableand
protected fromdamage. Secondary packaging is also intendedas advertising.
Examples include toothpaste/soappaper boxes. Inaddition, it is used togroup
small product units together, suchasboxes for tea/coffeebags.
3
The layer of packaging toprotect goods during shipping, e.g., plasticcartons,
corrugatedboxes andcardboardboxes, andpackaging for transportinggoods
fromproducers toconsumers, suchaspostal boxes, andplasticbags used for
onlinegoods or E-Commerce shipments.
4
ElectronicTransactionsDevelopment Agency (PublicOrganization)
