Thailand’s waste surge spurs growth in recycling businesses

Thailand recorded its highest waste volume at 26.95 million tonnes in 2023, a year that marked the economic revival following the Covid-19 pandemic. Of particular concern is that only 21% of hazardous waste — such as electronic waste, light bulbs, and batteries — is disposed of correctly.

Overall, although 72% of total waste is properly managed or recycled, the figures reveal substantial “untapped potential,” especially within the processing and recycling sectors.

Data from the Office of Small and Medium Enterprise Promotion (OSMEP) and the Small and Medium Enterprise Development Bank (SME D Bank)’s Research and Information Centre shows that Thailand has 21,340 operators involved in waste management and recycling.

Of these, over 83% are individuals, numbering more than 17,815, while the remaining 3,525 are registered corporate entities.

These operators are familiar faces — such as scrap dealers and businesses buying plastic bottles or scrap metal — scattered throughout major cities and communities. They may lack advanced machinery or large capital but remain the crucial cogs driving the country’s recycling industry.

Bangkok, Chonburi, Samut Prakan, Pathum Thani and Samut Sakhon are the five provinces with the highest concentration of such businesses, collectively accounting for 55% nationwide.

Focusing on individuals, the micro-enterprise segment dominates with over 16,049 operators. Within this group:

• 15,303 focus on wholesale waste and scrap material sales for reuse
• 377 engage in waste collection, treatment and disposal
• 369 process used materials for recycling and reuse

Meanwhile, the small enterprise segment consists of 1,766 operators, divided into:

• 1,347 in wholesale waste and scrap sales
• 290 in collection, treatment and disposal
• 129 in recycling and reuse processing

Among corporate entities, the fastest-growing segment is the small enterprises, numbering 2,077, closely followed by micro-enterprises at 1,051. The large enterprises — those with significant investment capacity and advanced technology — are only 109 in number.

Though few, these large players are expected to play an increasing role in the future, provided they receive sufficient support from the government or private partners.

As the green economy becomes a global priority, sustainable waste management has evolved from a mere “responsibility” into a tangible “business opportunity.”

In 2024 alone, 522 new SMEs registered in the waste management and recycling sector, with over 60% involved in wholesale waste and scrap sales. This demonstrates growing business awareness of expanding opportunities in both domestic and international recycling markets.

Despite promising trends, Thailand’s waste management industry faces several challenges. According to SME D Bank’s Research and Information Centre, household waste sorting is still not widespread, resulting in significant losses of recyclable materials. Moreover, most operators serve as intermediaries, lacking standards and technological advancement.

Meanwhile, startups employing technology to connect sellers and buyers of recyclable materials are emerging, adding value to waste streams. However, material prices fluctuate with global markets, leaving small operators vulnerable.

Infrastructure also remains insufficient. Collection, sorting and transport systems that should cover the entire country are underdeveloped. Additionally, laws and policies are weak, with ineffective enforcement mechanisms, hindering grassroots behavioural change in waste separation.