Bangkok, 2 March 2015 —— The lubricants market in South East Asia is set to grow at 4.7% annually from 2014 to 2019, according to a new report from Ipsos Business Consulting, a global consulting firm for the sales and marketing strategy. The forecast growth rate for the ASEAN countries (excluding Singapore and Brunei) is double that of the global figure (2.6% CAGR). With such strong growth, Ipsos Business Consulting is expecting that the total market will reach 3 billion litres in 2019.
Commenting on the Ipsos forecast, Sanpichit Songpaisan, Thailand Country Manager noted that annual new car sales in the three largest automotive markets in ASEAN: Indonesia, Thailand and Malaysia are expected to grow at 7-8% from 2014 to 2019 will stimulate the demand of lubricant market.
Songpaisan also highlighted that growing cross-border trade as a result of ASEAN economic integration will be another key factor to drive the overall lubricant market in ASEAN.
“Intraregional trade will enjoy the zero-duty agreement, which will induce cross-border trade in ASEAN significantly,” said Songpaisan.
“For example, the Ministry of Commerce in Thailand believes its growth to be 10% per year for trade within ASEAN. The manufacturing sector, which contributes to about 27% of the regional economy, is also expected to grow at 6% per year. Low costs of labour will continue to attract foreign companies to invest more in the region,” Songpaisan continued.
In its report, Ipsos highlights that there is a major opportunity for investment in the 8 ASEAN countries featured in the growth forecast. The growth of automotive and industrial sectors in recent years, together with the increasing urbanisation, has created substantial demand for automotive and manufacturing related products throughout South East Asia. However Ipsos notes that this growth opportunity has also brought intense competition from both international and national oil companies.
[Source : IPSOS]