66
ASEAN PLASTIC END-USER MARKET TREND
ASEAN PLASTIC
END-USER MARKET TREND
Content
ASEAN ECONOMIC SITUATION
RESINS MARKET OVERVIEW
THE OPPORTUNITIES IN CLMV
• PLASTICS PACKAGING• VEHICLE• ELECTRONIC & ELECTRICAL• CONSTRUCTION• MEDICAL DEVICES• AGRICULTURE• AIRCRAFT
PLASTICS CONVERTOR MARKET
BIOPLASTICS
Upstream
Petroleum
Downstream
Petrochemical
Natural Gas/Crude
Ethane/Naphtha
Upstream / Interm.
Olefins/AromaticsMEG/SM/etc
Plastic Resins& Fibers
Plastics Products
220-500 340-560 1,200-1,500 1,300-1,600 > 1,400-3,200
Value in US$/ton
Downstream
Source: PTIT (as of June 2013)
Fuels/Lubes
Petroleum & Petrochemical Value Chain, 2012
3
Plastics Convertors
ASEANSITUATION
Countries/Region
GDP Value(Million USD)
World Ratio(%)
World 75,084,574 100
EU 18,594,944 24.76
USA 16,800,000 23.37
China 9,240,270 12.3
Japan 4,901,530 6.52
AEC 2,351,886 3.13
S. Korea 1,304,554 1.73
Other 21,891,390 29.15
Source : WORLD BANK5
World GDP: 2013
ASEAN GDP Growth : 2013
7
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Africa ASIA EU North USA Oceania South America
World Population: 2002-2013
Growth (%) 1.23 1.22 1.21 1.20 1.19 1.19 1.18 1.17 1.16 1.04 3.26 AAGR 2002-2013= 1.36%
Million People
year
7,122
AEC14%
Other ASIA86%
ASEAN+6 Population 2013
1,357
1,252
12750 23 4
24998 67 29 5 0.41 15 6 53 89
0
200
400
600
800
1,000
1,200
1,400
1,600
Source : World Bank (2012) / CIA Fact Book (2012)
Unit : Million People
ASEANCLMV
RESINSMARKET OVERVIEW
-10%
-5%
0%
5%
10%
15%
20%
0 10 20 30 40 50 60 70 80
Myanmar
PE & PP Market 2013Gr
owth
Rate
2012
-201
3 (%
)
Domestic Consumption Per Capita 2013 (kg)
Size = Domestic Consumption 2013 (KTA)
Indonesia
Brunei
Laos
Cambodia
China
USA
Vietnam
Philippines
Japan
SingaporeMalaysia
Thailand
S.Korea
Taiwan
Source: CIA World Factbook, IMF and PTIT, April 2014
- 2,000 4,000 6,000
Poland
Hungary
Sweden
Japan
United Kingdom
Malaysia
Austria
Italy
Hong Kong
Spain
India
Brazil
Taiwan
Canada
Iran
France
Netherlands
Thailand
Singapore
Germany
South Korea
Belgium
United States
- 5,000 10,000 15,000
Sweden
Czech Republic
Thailand
Russia
Malaysia
Brazil
Netherlands
Canada
Hong Kong
Poland
Spain
United Kingdom
Indonesia
India
Singapore
United States
France
Belgium
Mexico
Italy
Turkey
Germany
China
World Total Export: 48,919 KTAWorld Total Import: 57,600 KTA
2013 World Import-Export Ranking of PE&PP
KTA
Source: Global Trade Atlas, April 2014
KTA
PE & PP Market 2013
CountryConsumption
(KTA)Growth
(2012-2013)Consumption per Capita
(kg/person)
Thailand 2,729 2.6% 40
Cambodia 18 12.5% 1
Laos 11 10.0% 2
Myanmar 98 0.0% 2
Vietnam 1,736 7.1% 19
Brunei 1 20.0% 3
Indonesia 2,743 6.9% 11
Malaysia 1,462 4.7% 49
Philippines 843 4.5% 8
Singapore 196 3.7% 36
PLASTICS CONVERTORMARKET
COUNTRYIMPORT EXPORT
Value at 2013(Million US)
CAGR 2008-2013
Value at 2013(Million US)
CAGR 2008-2013
Thailand 3,696 4.7% 3,549 5.2%
Cambodia 195 15.4% 28 25.4%
Laos 76 16.4% 3 64.2%
Myanmar 270 25.2% 2 44.4%
Vietnam 2,620 19.6% 1,626 15.2%
Brunei 161 31.0% 0.2 0.1%
Indonesia 2,129 15.2% 1,405 5.1%
Malaysia 2,203 5.8% 3,399 3.8%
Philippines 726 8.2% 378 9.3%
Singapore 2,878 5.2% 2,517 6.0%
PLASTICS PRODUCT IMPORT – EXPORT (HS.3916-3926)
ASEAN’s Plastics Manufacturer
0
500
1,000
1,500
2,000
2,500
3,0003,000Companies
1,500
340
2,000
N/A N/A N/A N/A N/A N/A
Values of Thai Plastics Resin* Conversion Industry: 2013
Source: PTIT Data, Modified by PITH*Exclude PET and Nylon fiber
Safety
Others
Agriculture
Autoparts EE & Appliances
Construction
Footwares
Recreation
Housewares
Medicals
Filament (Non-textile)
Packaging
Total Production of ConversionValue: 566,841 Million Baht
(13,889 Million US$)Volume: 4,795 Ktons
191,683 Million Baht (33.8%)2,309 ktons (43.4%)
110,522 Million Baht (19.5%)757 ktons (14.2%)
62,793 Million Baht (11.1%)641 ktons (12.1%) 78,744 Million Baht (13.9%)
361 ktons (6.8%)
29,099 Million Baht (5.2%)82 ktons (1.6%)
25,769 Million Baht (4.5%)198 ktons (3.7%)
8,263 Million Baht (1.5%)73 ktons (1.4%)
18,436 Million Baht (3.3%)93 ktons (1.8%)
13,257 Million Baht (2.3%)48 ktons (0.9%)
12,105 Million Baht (2.1%)110 ktons (2.1%)
11,502 Million Baht (2.0%)89 ktons (1.7%)
4,697 Million Baht (0.8%)34 Ktons (0.6%)
17
Thailand, Malaysia, Myanmar and Singapore Market Segments of Plastic Products
Source: Department of Statistics
Packaging45%
Electrical & Electronics
26%
Construction8%
Automotive10%
Household7%
Other2%
Others2%
Packaging47%
Houseware, stationary
18%
Pipe & construction
meterial25%
Other10%
Film/ Bags24%
Pipes/ Profiles
10%
Bottle/ Containers
8%
Extrusion Coating
7%
Precision IM42%
Other9%
Packaging48%
Electrical & Electronics
15%
Construction14%
Automotive8%
Housewares4%
Agriculture2%
Recreation2%
Safety & Security
2%
Filament2%
Footwares1%
Medical1%
Other1%
Packaging62%
E&E7%
Auto Part7%
Construction7%
Houseware5%
Agriculture3%
Filament3%
Recreation2%
Footwear2% Medical
1%
Other1%
Safety& security0%
2013 Thailand PE & PP Market by Sector
Total PE& PP Consumption 2,729 KTA
PLASTICS PACKAGING
Population Food consumptionAlcoholic drink
value salesSoft drink
value salesMass grocery retail
sales
2012(Million Person)
2013 (%)2017e
(%)2013 (%)
2017e (%)
2013 (%)2017e
(%)2013 (%)
2017e (%)
China 1,350 13.3 13.1 8.3 8.6 7.5 7.1 8.8 9.0
Indonesia 246 7.9 9.3 6.7 6.4 6.0 6.5 13.2 13.7
Philippines 96 4.32 4.16 7.19 6.86 7.2 7.75 6.92 6.85
Malaysia 29 2.9 3.0 3.4 3.6 4.0 4.9 8.0 8.0
Singapore 5.3 4.46 2.41 6.04 5.64 3.49 2.94 2.92 2.76
Thailand 66 7.03 5.99 6.87 7.5 6.32 5.52 6.96 6.63
Vietnam 88 8.0 9.0 14.3 14.0 15.1 14.2 12.8 1.27
Food Industry Growth
Source Business Monitor International (2013)
0100200300400500600700
Indon
esia
Malay
sia
Sina
gapo
re
Thail
and
Philip
pines
Vietn
am
Camb
odia
Laos
Brun
ei
Myan
mar
ASEAN Trade Plastics Packaging (*3923) by value (2011 - 2013)
Unit : Million USD
Source : Global Trade Atlas (2014)
0200400600800
1,0001,2001,400
Indon
esia
Malay
sia
Sina
gapo
re
Thail
and
Philip
pines
Vietn
am
Camb
odia
Laos
Brun
ei
Myan
mar
Unit : Million USD
-500
0
500
1,000
Indonesia Malaysia Sinagapore Thailand Philippines Vietnam Cambodia Laos Brunei Myanmar
2011 2012 2013
IMPORT EXPORT
TRADE BALANCE
*H.S 3923 : Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics
Unit : Million USD
- 0.50 1.00 1.50 2.00 2.50 3.00 3.50
Older population
Recycling
Smaller pack sizes
Smaller households
'On-the-go' lifestyles
New packaging material development
Brand enhancement/differentiation
Convenience
Health awareness
Rating
22
Respondents’ views on major drivers to growth in their respective national packaging industries over the next five years
Note: *averaged response whereby 4=critical; 3=very important; 2=fairly important; 1=relevant but notimportant; 0=not at all importantSource: Pira International Ltd survey of WPO member organizations
Packaging Key Drivers and Trends
Global Packaging Trend
Source : DuPont (2012)
VEHICLE
WORLD Motor Vehicles Production 2003/2013
Region 2013 2003 CAGR (2003-2013)
WORLD 87,300,115 60,618,600 +4.14 %
EUROPE 19,726,405 20,004,927 -0.16 %
AMERICA 21,136,313 18,246,489 +1.65 %
ASIA-OCEANIA 45,800,878 21,971,432 +8.50 %
AFRICA 636,519 395,752 + 5.42 %
Source : OICA (2013)
Unit : Unit
ASIA Motor Vehicles Production 2003/2013
Country 2013 2003 CAGR (2003-2013)
Total (ASIA-OCEANIA) 45,800,878 21,971,432 +4.14 %
CHINA 22,116,825 4,443,686 +19.52 %
JAPAN 9,630,070 10,286,318 -0.73 %
SOUTH KOREA 4,521,429 3,177,870 +4.00 %
INDIA 3,880,938 1,160,525 +14.35 %
THAILAND 2,457,057 742,062 +14.23 %
INDONESIA 1,208,211 322,044 +15.83 %
IRAN 743,680 56,7019 +3.06 %
MALAYSIA 601,407 34,5000 +6.37 %
TAIWAN 338,720 386,686 -1.46 %
AUSTRALIA 215,926 413,261 -6.96 %
PAKISTAN 142,145 51,692 +11.90 %
PHILIPPINES 52,260 53,777 -0.32 %
VIETNAM 40,920 21,492 +7.42 % ASEAN Counties
Source : OICA (2013)
Unit : Unit
67
251
30 106 92
314
1,351
50 1.33 1.22 0.66 0.21 0.10 23.67 19.31 1.56
Population (Million Person) Sales (Million Unit)
ASEAN Population per Sales Motor Vehicles 2012
51
206
45
497
956
13 70
32
Population Per SalesPopulation and Sales
Source : OICA (2013) / World Bank
ASEANDevelopedCountries
ASEANDevelopedCountries
PopulationSales
35.60%
17.20%12.50%
11.20%
9.90%
6.90%6.80%
Polypropylene
Polyurethanes
ABS
Composites
HDPE
PMMA
Polycarbonates
Source : Dallas, TX (PRWEB) April 27, 2012
Automotive Plastics Market for Passenger Car
Automotive Development Trend
Downsizing of engines resulting in an increased use of turbo systems
Weight Reduction via various metal-to-plastic conversion projects for powertrain and exterior/interior components
Electrification of subsystems
Development of Hybrid propulsion concepts and Electrical vehicle concepts
Introduction first of more safety systems
The Reason of weight reduction in Vehicle
So the incorporation of the lightweight materials as Plastics in automotive is a necessity and our common need
Performance & Fuel Efficiency
Every 10% reduction in vehicle weight results in 5% to 7% fuel saving
Reduce Carbon Emission
Every kilogram of vehicle weight reduction, there is the potential to reduce carbon dioxide emissions by 20kg
Portion of Material using in Vehicle
• Plastics will account for 18% average vehicle weight by 2020, up from 14% in 2000
Source : A.T. Kearney analysis
Note : kg=kilogram. Due to rounding, some percentages may not add up to 100.
ELECTRONIC & ELECTRICAL
WORLD Electronic Production by Region
0%
20%
40%
60%
80%
100%
1995 2000 2012
Rest of World
East Europe
Asia Pacific
West Europe
Japan
Canada
USA
Low Cost
High Cost
• Electronics Production incline to low cost countries
Source : The office of Industry Economic (OIE)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Thailand Singapore Philippines Malasia Indonesia Vietnam
COMPONENTS
CONSUMER
TELECOMMUNICATIONS
COMMUNICATIONS & RADAR
MEDICAL & INDUSTRIAL
CONTROL & INSTRUMENTATION
OFFICE EQUIPMENT
EDP
Unit : Million USD
ASEAN Countries E&E Production Values 2012
Source : The office of Industry Economic (OIE)
ELECTRONIC DATA PROCESSING
Malaysia
SINGAPORE
MALAYSIA
THAILAND
PHILIPPINES
VIETNAM
INDONESIA
ComponentsElectronic Data
Processing (EDP) Office Equipment Consumer
5th 8th 8th 25th
7th 5th 9th 4th
9th 6th 15th 8th
11th 11th 12th 26th
29th 22th 21th 21th
16th 24th 16th 11th
World E&E Industry's Production Ranking (2010)
Production Ranking
Source : The office of Industry Economic (OIE)
E&E Global Development Trend
Growing demand in using of Individual electronic application especially smartphone, computer and tablet.
Semiconductor is important to develop and create an innovation in E&E industry.
Most electronic equipment have multi-function and are compatible with other electronic devices.
Focusing on development of application comply to energy saving and environmental friendly concept.
Product life cycle tends to be shortened and product replacement occurs rapidly.
Focusing on rapid and high efficient production including zero waste released to the environment
CONSTRUCTION
25%
35%4%
31%
2% 1% 3%North America
Westen Europe
Eastern Europe
Asia
Middle East
Africa
Latin America
17%
24%
5%
46%
2% 2% 3%North America
Westen Europe
Eastern Europe
Asia
Middle East
Africa
Latin America
2005 2020
Source : HIS Global Insight (2012)
Share of Construction Spending by Region
China44%
Japan17%
India17%
Korea8%
Indonesia7%
ASIA Construction Values Spending by Countries 2012
Unit : Billion USD
Source : HIS Global Insight (2012)
1,245
487 477
222 184
43 30 26 20 19 18 16 130
200
400
600
800
1,000
1,200
1,400ChinaJapanIndiaKoreaIndonesiaTaiwanThailandBangladeshSingaporeVitenamMalaysiaPakistanPhilippines
Construction Spending Growth 2013 - 2020
CountriesCAGR
2013 – 2020 (%pa)
China 7.6
Japan 7.6
India 8.9
Korea 2.2
Bangladesh 6.1
Pakistan 4.3
Taiwan 3.2
Indonesia 4.5
Thailand 3.4
Singapore 3.5
Vietnam 6.7
Malaysia 4.5
Philippines 2.6
ASEAN
30.5
31.6
37.9
31.447.3
34.4 38.1 44.6
9.5
41.118.8 10.3
34.821.4 38.3
13.8
38.8
53.4
40.5
31.2 52.6
33.8 31.3 27.348.1
16.537
18.3
50.137.2
0%
20%
40%
60%
80%
100%
Non Residential Residential Infastructure
ASIA
Source : HIS Global Insight (2012)
Share of Construction Spending by Sector
ASEAN
55%
15%
12%
9%
2%2% 2% 1%
2% PVC
PS
PE
PU
PP
UP
PC
PMMA
Other
Plastics in Construction
Source : www.plastemart.com
• Commodity plastics such as PP, PS, PE, PVC, etc. use in construction industry
• The most of use plastics in construction is PVC as account for a half of all plastics in construction
Future Development of Construction Material
• Durable with knock and scratch.• High resistant with weatherability• Don’t rot and corrode.
• Flexibility for design.
• Light weight• Easy to move and transport• Safety / less accident
• Easy to install.• Fewer step to assembly
e.g. snap fit
• Low energy in processing• Environmental friendly
• Cost effective and reasonable
MEDICAL DEVICES
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050Asia Global China Indonesia Japan Malaysia EU USA Thailand
Population 60+ per Total Population
World Population 60+ Growth Rate
Source : US. Statistic Division
Asia
Medical Device Market by Region 2009 - 2013
020406080
100120140
Americas Asia/Pacifics Central/EastEurope
Middle East/Africa Western Europe
2009
2010
2011
2012
2013f
43%
21%5%
2%
29%AmericasAsia/PacificsCentral/East EuropeMiddle East/AfricaWestern Europe
Unit : Billion USD
Medical Device Market by Region 2013
Source : Medical Market Fact book
0
500
1,000
1,500
2,000
2,500
Indon
esia
Malay
sia
Thail
and
Philip
pines
Brun
ei
Sing
apor
e
Camb
odia
Laos
Myan
mar
Viten
am
ASEAN Health expenditure per Capita
Unit : USD
Source : World Bank (2014)0
2,000
4,000
6,000
8,000
10,000
USA Japan China S.Korea
2010
2011
2012
Unit : USD
ASEAN
Economic developed Countries
Plastics in Medical Device Industry
Source : “Medical Plastics QC: Handheld Raman for Raw Materials, Intermediates and Final Product Inspection”, http://www.analytik.co.uk and "Medical Plastics: Materials, Applications and Processingfor Medical Devices and Pharmaceuticals Industries", GE Plastics
Future Development of Plastics in Medical Devices
Disposable Medical Devices
Component Miniaturization
Resistance to Sterilize, x-ray, and gamma ray
Flexible design
Weight Reduction
แนวโนมวสดในอตสาหกรรมทางการแพทย
• ผสงอายจะท าใหแนวโนมความตองการใชโพลเมอร (ยางพารา และพลาสตก) ในเครองมอแพทยสงขน โดยเฉพาะในอปกรณพกพาและอปกรณทมความตานทานตอแรงกระแทรก
49
แขงแรง
ทนทาน
ยดหยน
น าหนกเบา
โครงสรางประชากรทมผสงอายมากขน
โพลเมอร(ยางพารา และพลาสตก)
AGRICULTURE
GDP Share by Sector
0% 20% 40% 60% 80% 100%
Thailand
Indonesia
Singapore
Malaysia
Philippiens
Brunei
Cambodia
Laos
Myanmar
Vietnam
0% 20% 40% 60% 80% 100%
USA
Japan
S.Korea
China
Agriculture Industry Services
Source : CIA Fact book
CLMV
ASEAN Reference Countries
AIRCRAFT INDUSTRY
Why Plastics is important in Aircraft Industry ?
• The use of modern polymer materials and reinforcing fibers makes it possible to achieve lightweight constructions and hence fuel savings
• Plastic components can normally be fabricated economically• Plastics are approximate 50% lighter than aluminium• Compared to metals, plastics do not corrode• Plastics provide a high degree of freedom in design• Plastics with modified sliding properties are best suited for use in dry
operation under extreme conditions• Transparent plastics serve as lighter and more impact resistant
alternatives to glass
Advantage of Plastics
Source : REPRINTED FROM THE IAPD MAGAZINE • april/may 2010
• The evolution of material in airplane move to use lightweight material as plastics composite for produce any components
• Boeing 787 and Airbus A350 use plastics composite produce component interior and exterior more than 50%
Evolution of plastics composite in Airplane
Source : GAO analysis of information from FAA, NASA, Boeing Company, Jane’s All the World’s Aircraft, and Jane’s Aircraft Upgrades
Evolution of plastics composite in Airplane (Con.)
Source : GAO analysis of information from FAA, NASA, Boeing Company, Jane’s All the World’s Aircraft, and Jane’s Aircraft Upgrades
BIOPLASTICS
“Bioplastics” Solution of Problem
Global alert and awareness on the plastics using problem is effect to environment. Therefore the development of Bioplastics to solving these problem in Bio-base form and Bio-compostable form
World Bioplastics Production (Con.)
• In the pass (2012) to the future (2017) Asia is the most production region of bioplastics accountfor 36.2% from 1.4 million tons in 2012 up to 45.8% from 6.2 million tons in 2017
Source : European Bioplastics, 2013
2012 World Bioplastics Production by Application
• In the present single use food packaging and equipment as a bottle, bag, catering application,etc. is the most application made from bioplastics around 1 million tons account for 71% of totalproduction at 2012
Total Bioplastics Production sort by region (2012)
Source : European Bioplastics, 2013
• The First generation to develop bioplastics as Disposables and Single use application so foodpackaging industry most appropriate
• And the Second and Third generation, bioplastics will move to semi-durable and durable applicationthat high value product as E&E component, automotive part including rigid packaging, etc.
Bioplastics Development & Trend
Source : National Innovation Agency, 2013
Basic RequirementEnd-Use Market Requirement
Automotive
Required Material
• Safety
• Light Weight
• Durable
• Affordable Price
• Easy Process
• Environmental Friendly
• Appearance
• Good Function Properties
End-Use Market Perspective
Electronic Electrical Appliances • Multi-function• Small size & Smart• Energy saving• Zero waste
Packaging• Green Material• Recyclable • Shelf Appeal• Convenience
Construction• Durable• Light Weight & Flexible• Easy to install• Low energy processing• Cost effective
Medical Devices• Deposal equipment• Miniaturization
Safety
Convenience
Aesthetic/Appeal
Cost Saving
Product Function
Productivity
Environment
• Weight Reduction• Electrification Improvement• Safety Improvement• Low energy consumption
PLASTICS
THE OPPORTUNITIES IN CLMV
COUNTRYPE& PP
Consumption (KTA)
PE& PP Consumptionper Capita (kg./person)
Machinery for Plastics and Rubber Import Statistic
Value at 2008 (Million US)
Value at 2012 (Million US)
CAGR 2008-2012 (%)
Thailand 2,729 40 878 2,004 23
Cambodia 18 1 2.6 10.5 42
Laos 11 2 1.8 7.3 43
Myanmar 96 2 8.1 64 68
Vietnam 1,736 19 438 651 10
Plastics and Rubber Machinery Import Statistic in CLMV
0%
20%
40%
60%
80%
100%
Thailand Cambodia Laos Myanmar Vietnam
Molds for Rubber or Plastics Except Injector CompressionMolds for Rubber or Plastic,Injection/Compression TypeParts of machinery
Others
Other machinery for moulding or otherformingRetreading pneumetic tyres/ moulding/otherwise forming inner tubesVacuum moulding&other thermoforming
Blow moulding
Extrusion
Injection moulding
Machines Extruding, Drawing Etc ManmadeTextilesFlexographic printing machines
Plastics and Rubber Machinery Import Statistic
1,400 2,150 2,522 3,133 3,801 4,2718,463
14,775
45,97953,266
0
10,000
20,000
30,000
40,000
50,000
60,000
ASEAN GDP Per Capita (2012)
High – End Market
Low – End Market
High – End Market(Advance & Specialty Product)
Low – End Market(Commodity Product)
US Dollar
Source : World Bank (2012)
THANK YOU
Plastics Institute of Thailand (PITH)MIDI Building, 86/6 Soi Treemit, Rama 4 RoadKlongtoye, Bangkok 10110
