The Industry Ministry is giving its full backing to the Thai cosmetics industry to boost its growth by 5-10% this year through quality upgrades aimed at penetrating neighbouring markets.
Product innovations in particular could serve rising demand in Cambodia, Laos, Myanmar and Vietnam, where purchasing power is rising in line with the economies, said Pasu Loharnjun, the deputy director-general of the Industry Promotion Department.
He said the ministry planned to lend its support to facilitate technology transfers and upgrade standards in order to help raise the quality of Thai cosmetics.
Fostering new innovations will also help promote the Thai cosmetics industry, whose annual market value is 210 billion baht. Of the total, 120 billion baht was generated domestically and the remaining 90 billion came from abroad.
"Thailand is a cosmetics industry leader in Asean. Up to 1,781 new entities registered themselves with the Commerce Ministry's Department of Business Development as cosmetics companies this year, up from 726 companies in 2014," Mr Pasu said.
The Industry Ministry's plan to help enhance the standards of the Thai cosmetics industry will focus mostly on small and medium-sized enterprises, with an eye to promoting them abroad.
"The government will lend its support to foster technology and innovation to increase the quality of Thai cosmetics, helping them penetrate markets abroad. The improved technology resulting from Industry 4.0 will also help increase the competitiveness of the Thai cosmetics industry," said Mr Pasu.
He said the government would specifically support research and development to help create new products.
According to Thailand's industrial cluster policy, there are 25 companies that are now members of the cosmetics cluster, including upstream companies such as Global Green Chemical Plc (GGC), which produces major chemicals for cosmetics.
Others include Thai Oleochemicals Co Ltd, a midstream company, and several downstream companies, including manufacturers and cosmetics distributors.