According to recently published report by TechSci Research, market for rubber chemicals in Thailand is expected will witness a Compound Annual Growth Rate (CAGR) of around 4% during 2015-20.
Major factors that are driving market growth include growing tyre exports and increasing consumption of rubber processing compounds in non-tyre applications. Due to favourable government initiatives to develop Thailand automotive hub in ASEAN region, tyre production in the country is expected to increase in the coming years, which is expected to further drive the use of rubber chemicals in the country.
The growth of rubber chemicals market is directly aligned with growth of tyre industry in the country. This is due to the fact majority of the rubber chemicals sourced from countries like China, Japan and Germany is consumed by the country’s tyre industry. Considering the anticipated growth in tyre production over the coming years in Thailand, rubber chemicals consumption for manufacturing tyres is expected to grow significantly through 2020.
Thailand rubber chemicals market is mostly import driven due to absence of manufacturers in the country. The country imports most of the chemicals from China followed by Japan. As a result, rubber chemical consumers in the country face tremendous problems due to high overheads charged on imports and to meet other regulatory obligations.