Scent-sational: Thailand set for foreign investment surge in fragrance oil
A surge in foreign investment in Thailand’s fragrance oil and aroma compound production is anticipated, which could boost the nation’s cosmetics industry, according to the Federation of Thai Industries (FTI). This follows a decision by a French firm to produce fragrance oil from Thai flowers, a move that showcases the country’s potential as a hub for the health and beauty sector, said Ketmanee Lertkitcha, FTI’s Health and Beauty Sector Chairperson.
“Thailand’s unique floral scents are in high demand globally, making it an attractive prospect for foreign firms looking to invest in fragrance oil production.”
Thailand’s rich raw materials make it an ideal location for developing the health and beauty industry. The government’s promotion of bio-, circular, and green economic development aligns well with the circular beauty trend in the cosmetics industry, a process that involves upcycling ingredients to minimise waste and benefit the environment, said Ketmanee.
“The cosmetics market in Thailand is the largest in ASEAN. Last year, the market value increased by over 11% year-on-year, reaching between 240-260 billion baht.”
Thailand exports around 60% of its beauty products, with the remaining 40% sold domestically.
“In the previous year, we exported beauty products worth 86 billion baht, a figure we anticipate will continue to rise annually.”
One area the FTI is urging the government to address is the laws surrounding the use of ethanol-derived alcohol. Current legislation imposes stringent controls on the use of ethanol as a raw material in industries such as cosmetics production.
This follows an announcement by the Tapioca Ethanol Association that it plans to collaborate with processed herb and cosmetics manufacturers to promote what it terms as “free trade” of ethanol-derived alcohol, reported Bangkok Post.
In related news, the FTI reported a minor dip in the industrial sentiment index for February, which fell to 90.0 from 90.6 in the preceding month. This decline was attributed to a slowdown in both domestic demand and exports, despite a boost from the tourism sector.
