BANGKOK -
Thailand has the potential to give the European
Union a run for its money as the top supplier in
the US$300 million global market for condoms,
KResearch said in a report.
Since it has
an abundant supply of natural rubber, Thailand
should be able to move up from being the
second-largest exporter of condoms in the near
future, said the research arm of Kasikornbank.
Annual sales of the Thai condom industry are
estimated at 650 million baht (about US$16.5
million).
The EU commands a global market
share of 40%, while Thailand has 15%. Other major
condom exporters include the United States, India
and Malaysia. It is likely, however, that Thailand will
be more
aggressive in the world market because several
large condom manufacturers are considering
establishing operations in Thailand to capitalize
on the country's abundant supply of natural
rubber, KResearch said.
Demand for condoms
is rising in many countries because of safe-sex
and AIDS-prevention campaigns. Some countries have
been largely dependent on imported condoms, said
the think tank.
Thailand, which was chosen by
the World Health Organization to host the 15th
International AIDS Convention in 2004, has been
widely praised by WHO and AIDS prevention
campaigners for its
100 Percent Condom program, a
safe-sex campaign launched in 2004. This should
further boost the country's chances to hike condom
shipments.
Last
year, Thailand exported 4,686
tonnes of condoms (a kilogram is equivalent to
720 condoms) to nearly 70 countries. The total
shipment was 16.1% more than in 2004, KResearch
said. Export revenues last year rose 22.9% to 1.83
billion baht from 2004.
Thai condom
manufacturers last year were able to take
advantage of increased demand in the world market.
Overseas buyers were anticipating a rise in the
prices of condoms and a possible tight supply due
to the spread of AIDS in parts of the world. A
number of countries stockpiled condoms from
Thailand, said KResearch.
Thailand's main
markets for condoms include the United States,
Japan, the United Kingdom and Russia. Last year,
more than a fourth or 26.7% of condoms made by
Thailand were sold to the US, 11.5% to Japan,
10.5% to the UK and 6.2% to Russia, said
KResearch.
Other emerging markets for
condom exports are Southeast Asian neighbors as
well as countries in Africa.
Meanwhile,
more condom users in Thailand favored imported
brands last year. Imports totaled 58 tonnes valued
at 30.93 million baht, said KResearch. Consumption
of imported condoms last year rose 25.1% by volume
from 2004, and 9.9% by value.
Nearly six
in every 10, or 57%, of imported condoms sold in
Thailand last year were US-made. Japanese brands
accounted for 20.2% of imported condoms, while
condoms from India accounted for 15.9% of total
imports.
KResearch said the import figures
are still low, but local manufacturers have to
study thoroughly Thai consumer preferences and
understand why some prefer imported condoms. They
should also engage in more research and
development studies to improve their production
processes, it said.
Thailand's 10 condom
manufacturers have a combined daily production
capacity of 3 billion condoms. They have
continually explored new overseas markets, while
conducting research and development to keep up
with changing consumer preferences in the world
market, the think tank said.
KResearch
said it is also important for Thai manufacturers
to maintain their product standards and keep up
with production requirements of importing
countries.
Since 1990, condoms have been
included in the Thai Health Ministry's list of
medical equipment and supplies that are covered by
strict production regulations. Condom
manufacturers are required to indicate production
and expiry dates on their packaging and register
their products with the ministry.
100 Percent Condom program, a
safe-sex campaign launched in 2004. This should
further boost the country's chances to hike condom
shipments. 
