6 minute read
ASEAN advances sustainable growth with support from the chemical industry
Dr. Matthias Pascaly
The Association of Southeast Asian Nations (ASEAN) is not only emerging as a global manufacturing and innovation hub—it is also a critical growth engine for the chemical industry. With over 670 million people, ASEAN is home to one of the world’s largest labor forces that is actively contributing to the region’s economic growth, and rising consumer demand(1).
This demographic strength, combined with increasing incomes, urbanization, and the rise of a middle class, is reshaping consumption patterns across the region. The demand for more advanced and sustainable products is accelerating, creating new opportunities for the chemical sector which is central to this transformation. Specialty chemicals in particular are indispensable for personal care products, nutrition, clean energy, and advanced materials.
For Evonik, this is not just a business opportunity—it’s a chance to contribute meaningfully to regional progress through chemistry and beyond.
ALIGNING INNOVATION WITH ASEAN’S SUSTAINABILITY PRIORITIES
ASEAN’s economic landscape is shaped by a wide range of development priorities across its member states, requiring locally tailored approaches to sustainability and innovation— an approach reinforced by the ASEAN Inclusive Business Framework and its 2025 Capacity Building and Talent Development initiative(2). Thailand’s national strategy reflects these goals, encouraging investment in bioeconomy, clean energy, and resource-efficient manufacturing(3). This creates a fertile ground for innovation partnerships.is well positioned to support the region’s evolving needs(4).
ASEAN’s sustainability priorities closely align with Evonik’s global innovation strategy. With a focus on bio-based solutions, energy transition, and circular economy, Evonik’s approach is well positioned to support the region’s evolving needs.
1. RISING DEMAND FOR SUSTAINABLE CONSUMER PRODUCTS SPURS BIOTECH INNOVATION
ASEAN’s growing personal care and home care markets are being reshaped by rising consumer awareness and demand for sustainable, high-performance products(5). Within this regional trend, Thailand stands out with its dynamic cosmetics and personal care industry(6). With support from the Thailand Board of Investment (BOI) for biotechnology-based innovations, the country’s industry is actively responding to consumer expectations—particularly as manufacturers seek to stand out through sustainability and performance.
To meet this rising demand for sustainable innovation in personal care, Evonik is advancing biotechnology through its Advanced Precision Biosolutions initiative. A prime example is the production of rhamnolipids, a new class of biosurfactants made from renewable raw materials. Biodegradable and gentle on skin, they are ideal for eco-conscious consumers in ASEAN’s evolving markets (7).
2. CLEAN ENERGY TECHNOLOGIES ADVANCE A SUSTAINABLE FUTURE ACROSS SOUTHEAST ASIA
Southeast Asia is undergoing a pivotal energy transformation. Under the ASEAN Plan of Action for Energy Cooperation (APAEC) 2021–2025, the region is targeting a 23 % share of renewable energy in its total primary energy supply and 35 % in installed power capacity by 2025. These ambitions are supported by large-scale renewable energy deployments, regional power grid integration, and increased cross-border electricity trade (8).
To achieve these goals, Southeast Asia requires advanced technologies that enhance energy efficiency and reduce emissions. This is where Evonik can play a transformative role. Through its innovative membrane technologies for gas separation and carbon capture for example, Evonik offers scalable solutions that align with ASEAN’s decarbonization agenda. These technologies can support cleaner industrial processes, enable low-carbon hydrogen production, and facilitate carbon capture and storage—key enablers of a sustainable energy transition(9). Notably, SEPURAN® Green membranes contribute to this effort by efficiently converting palm oil mill waste into energy, thanks to its high CO2 / CH4 selectivity (10). This is particularly relevant in Southeast Asia, where Thailand, Malaysia, and Indonesia together account for 87 % of the world’s palm oil production (11). By enabling the conversion of palm oil waste into renewable energy, Evonik’s technologies directly support the region’s efforts to decarbonize one of its most significant and emission-intensive industries.
3. ENABLING THE CIRCULAR ECONOMY
Southeast Asia is embracing the circular economy as a pathway to sustainable growth, with ASEAN member states implementing policies to reduce waste, promote resource efficiency, and foster innovation. The 2021 Framework for Circular Economy for the ASEAN Economic Community(12), guides this transition by encouraging collaboration, technological innovation, and multi-stakeholder engagement across sectors.
Thailand is positioning itself as a significant player in the region by adopting its Bio-CircularGreen (BCG) Economy Model, which aims to weave sustainability into essential sectors such as agriculture, energy, and advanced materials. BOI supports this model by offering incentives for manufacturing products from agricultural byproducts and waste (13).
Evonik is well-positioned to support and accelerate these regional efforts. In Thailand, where the company has operated for over 35 years(14), Evonik’s production site in Rayong demonstrates circularity in action where precipitated silica is produced from rice husk ash, transforming agricultural byproducts into high-performance materials for the tire and rubber industries—a local solution that reduces the carbon footprint by 30 % (15).
Across Southeast Asia, Evonik is expanding its circular economy footprint. A key milestone is its new world-scale alkoxides facility in Singapore, which boosts capacity to meet rising demand in sectors such as biodiesel, pharmaceuticals, and chemical recycling. Designed to operate with net-zero Scope 1 and 2 emissions, the plant underscores Evonik’s commitment to sustainable production. The company sees the circular economy as a powerful growth driver and aims to generate €1 billion in annual revenue from circular products and technologies by 2030 (16,17).
DRIVING INDUSTRIAL TRANSFORMATION IN ASEAN THROUGH TECHNOLOGY, TALENT, AND TRUST
While ASEAN’s potential is immense, challenges remain with productivity growth in the region’s manufacturing sector having slowed. Some firms risk falling behind global leaders in digital-intensive sectors due to gaps in technology adoption, infrastructure, and workforce skills.(18)
For Evonik, this challenge presents an opportunity to collaborate and contribute meaningfully to the region’s development. By investing in local talent, supporting digital infrastructure, and advancing sustainable technologies, the company aims to be a trusted partner in ASEAN’s industrial transformation. Through close cooperation with local stakeholders, Evonik can help address shared challenges while strengthening its presence and supporting long-term competitiveness across the region.
Dr. Matthias Pascaly
Country Head & Managing Director Evonik (Thailand) Ltd.
Contact details:
Takdanai Yodyoi
Business Development Manager
Tel: +66 9 2 264 0666
Evonik (Thailand) Ltd.
---------------Footnotes-----------------
https://www.adb.org/sites/default/files/publication/1067171/ki2025.pdf
https://www.nstda.or.th/thaibioeconomy/why-bioeconomy/thailand-vision-national-policy.html
https://www.evonik.com/en/company/we-go-beyond/rhamnolipids.html
https://www.evonik.com/en/news/news-stories/2025/don-t-waste-the-waste.html
https://asean.org/wp-content/uploads/2021/10/Framework-for-Circular-Economy-for-the-AEC_ Final.pdf
https://www.nstda.or.th/thaibioeconomy/why-bioeconomy/thailand-vision-national-policy.html
https://www.worldbank.org/en/region/eap/publication/firm-foundations
