Consumer focus on environment drives
Eka Global’s green packaging innovation
Consumer trend study showed food hygiene and safety as well as environmental conservation as the top consumers’ concerns in 2022, according to Thailand-based Eka Global, a leading longevity packaging producer. Backed by such findings, Eka Global will continue to focus on green product development with an aim to produce a series of innovative products in the next 1-3 years and to expand production capacity at its Thai plant by another 15% as well as establish a new production plant in India.
Mr. Chaiwat Nantiruj, Group CEO, Eka Global Co., Ltd., said that the continuing COVID-19 pandemic has encouraged global consumers to pay more attention to food hygiene and safety. Food producers have also sought innovative products that can lengthen shelf life while maintaining the quality, taste and safety of the food inside.
The environmental preservation trend will also dictate how future products, not only food packaging, would be. Environmental conservation will become the main practice for all business operators. Several studies showed that consumers are willing to pay 20% more for products that are environmentally friendly, and approximately 68% of consumers consider biodegradable packages.
Mr. Chaiwat added, “With these trends in mind, Eka Global will continue to develop and expand our business with circular economy being integrated into our corporate strategy and the guideline when we work with our business partners and the public and develop new products.”
Eka Global’s products are already 100% recycled. The company will not stop there and is working hard in research and development in three product groups: 1) bioplastic (PLA) made from natural produces like tapioca, corn and sugarcane; 2) biodegradable packaging; and 3) packaging made from PCR plastics. Eka Global aims to introduce at least one innovative product per year in the next 1-3 years, and to increase its products’ ability to extend shelf life from currently 2 years to 3-5 years.
In 2022, Eka Global projects that its sales would increase no less than 30-35% per annum, bringing its total sales to 1.6-1.7 billion baht. The company is confident in this goal due to the significant increase in the demand for ready-to-eat and premium pet food packaging in the past few years.
In 2021, the company enjoyed constant sales growth and achieved maximum production capacity of 2,850 million pieces per year. The company will have to run at its maximum production capacity until March 2022. To prepare for the growing trend, Eka Global is planning to expand its production capacity at its Thai manufacturing plant by 15% by adding another production line. This is a significant progress because Eka Global has just completed the construction of its 10th production line in the final quarter of 2021, enabling the company to increase production capacity by another 350 million pieces per year. The 11th production line is expected to be completed in the second quarter this year.
In parallel to the production capacity increase in Thailand, Eka Global will build a new production facility in Pune, India.
Mr. Chaiwat said that the company will also continue to support Thai SMEs by bringing their products to the world market with the help of Eka Global’s longevity packaging that supports Modified Atmosphere Packaging Process (MAP). This will help increase Thai SME’s competitiveness and access to the untapped global food market. To introduce its innovative packaging to SMEs, Eka Global plans to have nationwide roadshows after COVID-19 pandemic eases up in the near future.
