Trend Analysis: BASF Expands APG Capacity in Thailand (Bangpakong)

Source: BASF News Release, 19 November 2025

1. Event Overview (Verified)

BASF announced an expansion of its APG (alkyl polyglucoside) production capacity at Bangpakong, Thailand, aiming to meet the rapidly growing demand for renewable surfactants in Asia and globally.

APGs are plant-derived surfactants (glucose + fatty alcohol) widely used in:

• Personal care (shampoos, cleansers, cosmetics)

• Household cleaning

• Industrial surfactants

This expansion is a key step in BASF’s global APG strategy.

2. Trend Interpretation (Key Insights)

(1) Acceleration of Natural Surfactants – Green Substitutes Gaining Momentum

Consumers and major brands (P&G, Unilever, L’Oréal) are accelerating the shift from petrochemical-based to bio-based surfactants.

Main drivers:

• Regulatory pressure: Stricter EU and South Korea standards, limiting sulfates and VOCs

• Brand ESG commitments: Large consumer goods companies must report Scope 3 emissions

• Consumer preference: Demand for renewable and biodegradable ingredients

Insight: BASF’s capacity expansion signals that the natural surfactant market has moved from incremental growth to a market share replacement phase.

(2) Asia Emerging as Global APG Demand Center – Supply Chain Shifting East

BASF’s choice of Thailand over Europe or North America reflects three trends:

1. Fastest-growing consumption in Asia – Southeast Asia’s rising middle class and upgraded personal care consumption.

2. Supply chain localization – Major FMCG companies are locating production in ASEAN (Thailand, Vietnam, Indonesia), driving upstream chemical supply following customers.

3. Cost structure advantage – Raw materials (sugar, plant oils) are cheaper in Asia; labor and energy costs lower than Europe; trade frameworks like RCEP support cross-border production.

Insight: “The global hub for green chemicals is shifting from Europe/North America to Asia-Pacific.”

(3) APG Demand Expanding Beyond Personal Care into Industrial Applications

APGs are increasingly used in:

• Agrochemical additives

• Textile chemicals

• Oilfield cleaning agents

• High-end industrial surfactants

Industrial applications strengthen long-term demand stability and potential growth.

3. Strategic Implications for Investors and Executives

For Investors

• Raw material chain exposure: Glucose and fatty alcohol (especially RSPO-certified) will see higher demand.

• Green chemicals as investment focus: Beyond BASF, other majors like Croda, Clariant, and Evonik likely to expand bio-based product lines.

• ASEAN as a long-term manufacturing hub: Thailand, Malaysia, Vietnam likely to remain preferred investment regions (2025–2030).

For Corporate Executives

1. Review raw material strategy – Ensure reliable, traceable renewable inputs; consider long-term contracts.

2. Evaluate product portfolio – Increase share of bio-based or natural products.

3. Consider Southeast Asia footprint – For personal care or industrial supply, assess capacity and distribution in ASEAN.

4. Prepare for ESG compliance – Renewable products and circular materials will increasingly be regulatory priorities.

4. Watchpoints (Next 12 Months)

• Potential supply tightness of fatty alcohol for APG

• Competitors’ follow-up expansions in Asia

• Local Chinese bio-based surfactant expansion

• Purchasing strategies of major FMCG brands