Thailand’s manufacturing sector is pressing the government to treat plastic recycling as a national strategic imperative, warning that the country’s mounting plastic waste problem threatens both the environment and the industrial economy.

The Federation of Thai Industries (FTI) argued that only by raising the issue to top policy level can Thailand hope to manage its growing plastic burden effectively.

The FTI’s Plastics Industry Club, led by Chairman Thititham Pongpanangam, emphasised that while Thai manufacturers are adapting to external trade pressures such as US tariffs, the internal failure to manage post-consumer plastic waste remains the most serious obstacle to sustainable competitiveness.

He insisted that recycling must become central to Thailand’s industrial future.

Thailand currently recycles about 22 percent of its plastic waste, up from 18 percent in 2022, equating to the recirculation of approximately 700,000 tonnes annually.

But industry leaders say this progress is not enough.

The core problem, they argue, is that recycling costs exceed the expense of producing new plastic from virgin materials, making it difficult for recycling ventures to scale without state backing.

“Unless the government supports the development of more efficient recycling technology and processes, these high costs will persist, and we won’t be able to genuinely reduce plastic waste volumes,” Thititham stated.

Echoing the urgency, Veera Kwanloetchit of the PPP Plastics Association noted that Thailand once ranked among the world’s top plastic polluters entering the ocean.

Though Thailand banned the import of plastic waste in 2021 to focus on domestic volume, she said the greater challenge now is infrastructure: proper waste separation at the source, collection mechanisms, and a national recycling ecosystem.

To accelerate momentum, FTI recently launched the ALL_Thailand initiative in collaboration with PPP Plastics and the Alliance to End Plastic Waste (AEPW).

The project pilots three sub-programmes—Eco Digiclean Klongtoei, Rayong Less-Waste, and Paving Green Roads—over a two-year span to test scalable models of plastic reuse and leakage prevention across communities and provinces.

Beyond pilot projects, FTI is calling for cross-sector collaboration.

“Plastic waste management and recycling cannot happen without cooperation from all sectors—the government, the private sector, and the public,” the organization said.

They encourage policies to promote recycled plastic use, limit new plastic volume, and mobilise national participation.

The FTI is also pushing for tax incentives and fiscal support directed at bio-based and recycled plastics, citing the increasing burden US tariffs and global pressure on sustainable practices place on Thailand’s plastics and petrochemical industries.

Observers point to structural challenges in Thailand’s waste management chain: weak demand for reclaimed plastics, fragmented sorting systems, and the absence of wide adoption of Extended Producer Responsibility (EPR) frameworks.

Analysts from the World Bank and other institutions have repeatedly identified such systemic gaps as bottlenecks to a scalable circular economy.

Still, the industry’s appeal to the government underscores a shifting tone: no longer merely calling for reform, but demanding leadership.

With mounting plastic leakage and public expectations at stake, Thailand appears poised to test how far policy can reshape an entire industrial supply chain.

For FTI and the plastics sector, the stakes are clear: without decisive, coordinated action, environmental damage and economic costs may steadily advance in tandem.