Why Southeast Asia is the fastest growing market for composting in the world?

Latest data shows that Southeast Asia compostable products market size grew 312% year-on-year in 2024, much faster than Europe and the US (Statista 2024 report). Core drivers:

✅ Policy compulsion: Thailand/Malaysia to ban plastic by 2025

✅ Consumer awakening: 72% of Southeast Asia’s Gen Z are willing to pay a 10% premium for eco-friendly packaging (YouGov research)

✅ Infrastructure improvement: Lazada and Shopee to add a new exclusive category for “compostable” products.

Chapter 1 Exploding Segments: Opportunities from Data

1.1 Food Packaging: 61% of the overall market

Hot Sellers:

Compostable Takeaway Boxes (PLA+PBAT Composite)

Coconut Fiber Cutlery Sets (Oishii brand in the Philippines sells 200,000 pieces per month)

Data Highlights:

Thailand’s Foodpanda Platform Requires 100% of Merchants to Use Compostable Packaging by 2025

1.2 Daily Chemical Segment : a dark horse with 400% annual growth

Innovative products:

Flushable compostable wipes (65% repurchase rate for Indonesian brand Ecomami)

Bamboo fiber toothbrushes + compostable packaging ($8.99 per unit in Vietnam)

Policy dividend:

Singapore to ban toiletries containing plastic microbeads from 2024

1.3 Agricultural films: urgent need for substitution

Status:

Vietnam’s coffee plantations consume 23,000 tons of traditional films annually

PHA film degradation test: complete decomposition in 120 days in the field

Cost breakthrough:

Malaysian manufacturer pushes PHA film price down to $2.3/kg (down 40% from 2022)

Chapter 2 Country Market Depth Comparison

Dimension Thailand Vietnam Malaysia Philippines

Policy Strength Strictest Plastic Ban Tax Exemption for Imported Compost Products High Demand for Halal Certification High Subsidies from Local Governments

E-commerce Penetration Lazada Market Share 62% Shopee No. 1 in Monthly Live Users TikTok Shop Growing Fast Credit Card Payment Low Percentage

Popular Categories Takeaway Packaging Agricultural Films Daily Chemical Products Religious Festivals Customized Packaging

Logistics Pain Points High Customs Sampling Rate Difficult to Deliver in Remote Areas Large Price Difference between East and West Malaysia Typhoon Season Affects Deliveries

Chapter 3 Low-cost Entry Strategy: Opportunities for Independent Website Sellers

3.1 Golden Rules for Product Selection

? Lightweight and Small Parts Priority: ≤500g can go through postal parcels (shipping cost <$3)

? Complete Certifications: at least 1 of the following:

TUV OK Compost (recognized by European customers)

BPI (applicable to the U.S. market)

JIS A 5905 (Japanese standard, recognized by high-end customers in Southeast Asia)

3.2 Key Points for Localized Operations

Payment:

Thailand: PromptPay must-have

Vietnam: 78% coverage of MoMo e-wallet

Content Marketing:

Indonesia: TikTok #KomposChallenge hashtag broadcasted more than half a billion

Malaysia: Packaging products with Islamic green economy concept

3.3 Getting Around 3 Potholes

❌ Ignoring Religion Taboo: Malaysia bans pig-derived materials

❌ Over-reliance on platforms: Shopee draw has risen to 15%+

❌ Underestimating the cost of certification: 3 months set aside for SNI certification in Indonesia

Chapter 4 Successful Cases

4.1 Case: Chinese Brand “EcoChoice” Takes Over Thailand

Strategy:

Launched “Buy Coffee, Get Free Composting Bag” Campaign with 7-11

Pushed Composting Tutorial Comic on LINE OA

Results:

Top 3 in Segment within 6 Months

Customer Unit Price Increased from $5.9 to $14.3

4.2 Case: Social Breakup of Vietnam’s Homegrown Brand “Composto” Method: “The social breakthrough of the local brand “Composto” is a great success. Methods:

Facebook “Composting results cashback” campaign

“30 days zero plastic challenge” with Netflix

Data:

Repurchase rate of 41%, much higher than the industry average (17%)

Chapter 5 Trend Forecasts for the Second Half of 2024

5.1 Policy Winds

Indonesia proposes 200% environmental tax on non-degradable packaging

The Philippines will require all school canteens to use compostable tableware

5.2 Technological Innovations

Costs Down:

Thailand’s SCG Group Announces 25% Price Reduction for PLA Raw Materials

Performance Breakthroughs:

Water-soluble Compostable Packaging Films (dissolves on contact with water at 85°C)

5.3 Channel Changes

TikTok Shop testing “green channel” (compostable products traffic skewed)

New trend of cross-border independent websites: offset shipping costs with carbon credits