Enhancing the Development of the Cosmetics Industries with the BCG Economic Model: a Study of Problem and Propose Policy Development for the Thai Cosmetics Industries Containing Herbal Ingredients

Abstract

Background: Annual economic growth rate in Thailand averaged 3 percent over the last decade. At the same time, the rate of degradation of natural resource had an enormous impact and there was loss of biodiversity in an ecosystem. Therefore, Thailand was assimilated into changing circumstances by obtaining the Bio-Circular-Green Economy (BCG) model in order to develop the nation economic and social. Because cosmetic products, the product group in the health and medical industries, can be enhanced the quality of production and Thailand is the one of main important source of herbal cultivation. In addition, the trends of consumption prefer environmentally friendly products such as natural health and herbal treatments. For the above reasons, the products using natural raw materials chemical-free are an opportunity for economic growth. Cosmetics, especially those containing herbal ingredients, can enhance the country's economic value.

Objectives: To study the gaps in mechanisms and measures to drive Thailand's development with the BCG model for Thai herbal cosmetics, study the import and export situation of herbal cosmetics in the country, and develop policy proposals to drive the herbal cosmetics industry to sustainable economic model.

Methods: This study was qualitative research that was conducted between January and May 2023, using documents and data from the 2022 import and export data on the herbal cosmetics. It involves specific sampling by using three questionnaires in a sample directly related to industries in the private, education, and public sectors.

Results: The study found that the gap in mechanisms and measures to drive Thailand's development with a sustainable economic model with Thai herbal cosmetics. There is a lack of establishment of the BCG Model Economic Development Subcommittee in the field of cosmetic products, which is one of the economically viable product groups and the target economic group, health and medical. This reason has detrimental impact on the lack of monitoring of cosmetic-related operations, the lack of clarity in connecting with BCG Model. Business based on BCG concept in each region, especially health tourism such as spa business which uses cosmetic products. There is no data link between the research agencies and the regulatory agencies of concrete products. For cosmetic import data in 2022, the total import value was 48,590.31 million baht. The total export value was 46,438.20 million baht. The value of imports is higher than the value of exports. The major importer countries for cosmetic products are ASEAN 22.31%, China 7.80 %, and France 5.72 %. The main exporter countries for cosmetic products are ASEAN 19.33%, Japan 10.53 %, Australia 6.09%, respectively. The obstacles to developing the cosmetics industry with the BCG economic model are the production problems. The raw materials and packaging of cosmetic must are imported which makes an effect on 90% of product prices are increased. It brings about the high costs in trade and distribution. It was found that the government has no measures to promote the production of environmentally friendly products. For the financial aspect, there are no investment promotion measures for the production of environmentally friendly consumer products and no tax deduction. For the environmental aspect, there is a lack of laws requiring consumers to screen about waste. And for the development of the BCG industry, government official and the public sector lacks knowledge and disregarding the importance of BCG

          Therefore, the researcher has prepared an important policy proposal, namely the appointment of a sub-committee to promote the cosmetics industry containing herbal ingredients under the BCG economic model to develop policies to drive the top-down, supervise, monitor, and evaluate the performance continuously, and propose policies to develop and/or promote the cosmetics industry under the BCG economic model. So, the first thing is the legal development in order to do more efficient claims of cosmeceutical products. Develop manpower and expertise, reduce dependence on external experts and develop experts to provide regulatory advice to entrepreneurs. Able to link the database that searches for herbal compounds that Thailand allows for use in cosmetics with the agencies that have already acted. Academic to support knowledge in technology, innovation, development of knowledge of cosmetic production technology operating under the BCG model for the private sector, community enterprise groups. Emphasis on the decentralization and the knowledge of new laws and regulations will be applied to authorities in each area. Establishing the international networks or/and expanding the member of the international networks in supervision on export products. The action plan for the development of the cosmetic industry includes the academic industry development plan on the safety standards of cosmetic products and market creation for BCG innovative products, has legitimately advertised marketing as well as promoting labels related to bio economy, circular economy, and green economy.

Conclusions: Enhancing the development of the herbal cosmetic industry based on the BCG economic model can be driven concretely, quickly and sustainably. Although, there are a gap in mechanisms and measures to drive Thailand's development with a sustainable economic model, there is an integration of cooperation between the public sector, the private sector, the education sector and the public sector by relying on the strength of the country that consists of biodiversity and cultural diversity and use the knowledge of science, technology and innovation to promote and develop the economy to achieve the goals.