Thai Beverage Can Ltd (TBC), an aluminium can manufacturer, expects demand for beverage packaging to continue to grow, after reporting year-on-year sales growth of 37% in the first quarter amid global uncertainties.
Pavin Chayavivatkul, chief operating officer of TBC, said rising consumption of functional drinks, energy drinks, ready-to-drink beverages, and premium products is driving demand for beverage packaging.
PwC Thailand's Voice of the Consumer Survey 2025 found that Thai consumers are becoming more health-conscious, while placing greater importance on food safety, product quality and wellness benefits.
Mr Pavin said Thailand's aluminium can usage is relatively low compared with neighbouring countries, but he expects this to rise as functional drinks and premium beverages become more popular.
Roughly 75% of beverage packaging in Thailand is plastic and glass bottles, while aluminium cans account for about 70% in Cambodia and 60% in Vietnam.
More consumers are buying beverages at modern trade outlets, supermarkets and convenience stores, which is expected to drive growth in can usage, said Mr Pavin.
Aluminium cans are free from microplastics, provide full protection against heat and ultraviolet exposure, and are 100% recyclable.
The price of an aluminium can is typically five times higher than that of a plastic bottle, he noted.
Thailand's can industry is growing by about 4% per year, said Mr Pavin.
With an annual production of 7 billion cans, the company operates three facilities across Thailand and Vietnam. The two Thai plants are strategically located in Saraburi province to leverage major logistics networks.
In the first quarter, TBC Thailand recorded a sales volume of 679 million cans, a 37% year-on-year increase, while consolidated sales reached 2 billion baht, up 32%.
Exports accounted for 18% of the total sales volume for the period, with the export volume growing more than six times year-on-year.
The company supplies aluminium cans to 40 countries including India, Bhutan, Australia, New Zealand and Norway.
"We are exploring business opportunities in Asia, including in Vietnam and India. TBC may expand the production capacity at out Vietnam facility and we want to better serve customers in India," Mr Pavin said.
SUPPLY CHAIN RESILIENCE
Regarding the effects of the Middle East conflict, Mr Pavin said the company is navigating a volatile global market by prioritising supply chain resilience.
He said recent geopolitical tensions have created a new reality for manufacturers. In addition to cost management, ensuring a reliable supply of materials amid increasing volatility in energy, logistics and raw materials is crucial, said Mr Pavin.
"The beverage packaging industry is sensitive to these global shifts, as metal costs are about 60% of total production expenses," he noted.
The industry faces a nearly 50% year-on-year increase in aluminium prices on the London Metal Exchange, while raw material delivery lead times have doubled from 30 to 60 days.
To counter these challenges, TBC has implemented several strategies such as pursuing long-term partnerships with both customers and suppliers to improve supply visibility and business continuity, said Mr Pavin.
"The company strengthened the supplier network and diversified sourcing channels to reduce dependency on any single source and improve supply security," he said.
TBC also maintains an inventory cycle of roughly 107 days to ensure uninterrupted production.
In addition, the company has invested in on-site solar energy to provide a buffer against rising energy costs and reduce dependency on the national grid.
