Thailand's cosmetics industry will enjoy 10-15%
growth this year
Thailand’s cosmetics industry is more advanced than those in other
Asean countries, but regional integration and harmonisation of standards
will challenge the industry to maintain its leadership, says Dr Panvipa
Krisdaphong of Mae Fah Luang University.
from 140 billion baht last year, supported by rising
demand for natural products that are based on the country's rich
biodiversity.
Panvipa Krisdaphong, the dean of Mae Fah Luang University's cosmetic
science school in Chiang Rai, said Asian countries including Thailand
were garnering wider attention from Western countries whose consumers
are looking for more green and organic products.
The industry is moving more towards the "three Es" _ effective,
economical and ecological _ and Thailand stands to gain with its many
different
varieties of indigenous plants from which ingredients can be
extracted, she said.
Many global cosmetics companies have already established production
bases in Thailand in order to secure easier access to local herbs.
Some companies may be eyeing Vietnam, but that country's
infrastructure does not yet support this type of investment, according
to Dr Panvipa, who is also the president of the Society of Cosmetic
Chemists of Thailand.
She said that while Thailand's cosmetics industry was more advanced
than those in other Southeast Asian countries, Thai entrepreneurs should
realise they must continue improving their production efficiency with
the approach of full liberalisation under the Asean Economic Community.
Asean members are working to harmonise production standards for
cosmetics such as with Good Manufacturing Practice (GMP) certification.
However, Dr Panvipa said while Asean members may all use the same
checklist for GMP approval, there may be different levels of
interpretation by accreditation agencies in each country.
This creates the possibility that GMP-certified products may be made in neighbouring countries and imported into Thailand.
Still, Dr Panvipa encourages Thai cosmetics makers to try to meet GMP
standard requirements if for no other reason than this is what buyers
want, especially in export markets.
Some 45% of Thailand's 140-billion-baht cosmetics industry produces
for export. But domestic demand is also moving in the same direction as
global demand for more natural products.
Theeraya Krisdaphong, the sales and marketing manager at Specialty
Natural Products Co (SNP), which supplies Thai botanical and herbal
extracts domestically and internationally, said sericin _ which is a
type of protein created by silkworms in the production of silk _ and the
kwao khrua plant are two of the company's two popular extracts.
Other popular extracts include fish collagen, black ginger and paper mulberry.
SNP produces more than 300 extracts from fresh herbs supplied by local communities.
Many of the plants are seasonal, so the company tries to control
costs by producing as much as possible during the harvest season.
Established 12 years ago with an 88-million-baht production facility
in Chon Buri province, SNP expects 80 million baht in revenue this year,
up by 20-30% from last year. About half of its business is from export
markets.
The company expects similar growth next year with revenue estimated at 100 million baht.
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