Sustainable Packaging

The transition to sustainable packaging continues to face several key challenges, including the higher costs of recycled materials and the greater complexity of production processes compared with conventional materials. Further development of recycling infrastructure across the entire value chain is also essential, together with stronger collaboration among business partners and consumers to ensure proper waste separation, collection, and recycling. Addressing these challenges is critical to enabling an effective and sustainable transition toward more sustainable packaging while maintaining product quality and the Company’s competitiveness.

Our Sustainable Packaging Commitment

Under its vision, “The Power to Enhance Life,” Osotspa Public Company Limited and its subsidiaries are committed to driving business growth while reducing environmental impacts throughout the product value chain. The Company takes a systematic approach to the design, sourcing, production, use, and post-consumer management of packaging to support a circular economy, reduce the use of natural resources, and minimize packaging waste sent for disposal.

Osotspa has established a long-term ambition to advance Zero Packaging Waste and reduce the environmental impacts associated with packaging, with a target for 100% of packaging to be recyclable, reusable, or compostable by 2030. To further respond to industry developments and stakeholder expectations, the Company has also established quantitative Group-wide targets to reduce packaging weight per unit of product by 15% by 2024 and eliminate 100% of environmentally unfriendly plastics by 2025, covering primary and secondary packaging associated with the Company’s products.

Osotspa’s sustainable packaging approach focuses on seven key areas:

  • Reduce packaging weight and material use
  • Increase the proportion of reusable packaging
  • Increase the proportion of recyclable packaging
  • Reduce and eliminate unnecessary single-use plastics
  • Increase the use of recycled materials, particularly post-consumer recycled (PCR) materials
  • Establish mechanisms to ensure that recyclable packaging is collected and effectively returned to recycling systems
  • Allocate research and development resources to develop alternative packaging solutions and packaging innovations with lower environmental impacts

To translate these commitments into action, Osotspa integrates its sustainable packaging goals into product design, procurement, collaboration with Tier 1 and Non-Tier 1 suppliers, manufacturing, distribution, and engagement with external stakeholders, including recyclables buyers and collectors, local authorities, waste management partners, and consumers. The Company continuously monitors progress through indicators including packaging weight, the proportion of recyclable/reusable/compostable packaging, recycled content in packaging, and packaging collection or actual recycling rates.

Targets and Performance

2030 Target
%
of packaging to be recyclable or compostable
2025 Performance
%
2025 Target
Reduce packaging weight for consumer products by
%
2025 Performance
%
2025 Target
Eliminate PVC plastic from Osotspa product packaging
2025 Performance
%
2025 Target
Increase the use of cullet in packaging production to at least
tons
2025 Performance
tons

Osotspa manages materials and packaging in accordance with national and international sustainable packaging management standards and guidelines under the Company’s Occupational Health, Safety and Environment Policy, which has been approved by the Chief Executive Officer. The policy provides direction for the Company’s operations in alignment with its long-term sustainability strategy.

The Company applies the 5Rs principles as a framework for managing packaging throughout its life cycle, from design and production to end-of-life management, as follows:

Remove
Eliminate unnecessary materials to improve resource efficiency.
Reduce
Reduce packaging weight or size to minimize environmental impacts.
Reusable
Promote packaging reuse to extend its useful life.
Replace
Replace conventional materials with more environmentally friendly alternatives.
Recycle
Enhance packaging recyclability.

Implementation Strategy

Remove — Eliminating Unnecessary Materials to Improve Resource Efficiency

In 2025, the Company eliminated the use of PVC film across various products, including functional beverages such as Calpis Lacto, as well as personal care products such as Twelve Plus Shower Cream, Babi Mild Cream, and Babi Mild Lotion. The Company also transitioned to alternative materials made from recycled plastics to produce packaging that is easier to recycle, thereby reducing environmental impacts and supporting packaging recycling.

Eliminated the use of PVC film in blister-pack packaging for Ole and Botan candy products, replacing it with alternative zip-lock plastic pouches to reduce environmental impacts and support packaging recycling. In 2025, this initiative eliminated 9.09 tons of PVC, enabling the Company to achieve 100% elimination of PVC from its packaging.
Continued to use perforated shrink labels on Calpis Lacto beverage products, enabling labels to be separated from the packaging during the recycling process. This initiative has been implemented continuously since 2021.
Minimized unnecessary packaging by using FSC-certified recycled paperboard only where necessary, while promoting the responsible sourcing of paper-based materials with consideration for sustainable forest management, natural forest conservation, and the rights of workers and local communities.

Reduce — Reducing Packaging Weight and Size to Minimize Environmental Impacts

Osotspa conducts research and development on packaging design with the aim of reducing the use of plastic, glass, and paper across its packaging portfolio. This approach covers both new and existing products and supports the Company’s sustainable packaging goals by reducing material use while maintaining product quality and packaging performance. The Company has applied this approach to lightweight glass bottles and continues to extend it to other packaging materials, including paper and plastic.

Plastic Packaging Weight Reduction
27.33 tons
Reduced plastic use in gallon containers and bottles for Babi Mild laundry products, Babi Mild lotions, Babi Mild baby powder, and Twelve Plus cooling powder in 2025, resulting in a total packaging weight reduction of 27.33 tons. The Company plans to continue applying packaging reduction initiatives to new product categories in the future.
Paper Packaging Weight Reduction
10.33 tons
Reduced paper use in product cartons by 10.33 tons compared with 2024, covering both new and existing products, including energy drinks and functional beverages under the M-150, Lipo, and C-Vitt brands. The Company also extended paper reduction initiatives to export cartons for M-150 and Shark energy drinks.

Reuse — Promoting Packaging Reuse to Extend Its Useful Life

Osotspa promotes reusable packaging solutions through its Reusable Packaging Program across selected products under the Ultra Mild by Babi Mild and Babi Mild Healthy Plus brands. Products such as shower cream, fabric softener, dishwashing liquid, and foaming hand wash are offered in refill pouches, helping reduce reliance on rigid plastic packaging and the amount of packaging material used per unit of product.

Refill pouches are significantly lighter than conventional bottles, helping reduce resource use associated with production and transportation, as well as post-consumer packaging waste. They also enable consumers to continuously reuse existing bottles, extending the useful life of primary packaging and reducing the need for additional single-use rigid plastic packaging. This approach supports circular economy principles by promoting more efficient use of resources.

In 2025, 29,390,072 Osotspa aluminum cans were collected, representing 353.9 tons of aluminum recycled and contributing to a reduction of 2,069 tons of CO₂ equivalent (tCO₂e) in greenhouse gas emissions.

Replace — Using More Environmentally Friendly Materials

Osotspa aims to manage plastic waste generated from its production processes by collecting and recycling the waste into new materials. Union J. Plus (Thailand) Co., Ltd. manages the process through to the production of post-consumer recycled (PCR) plastic resin. The PCR resin is then converted into PE shrink film for use in beverage production at Osotspa’s manufacturing facilities. Currently, the Company incorporates 30% PCR content into the PE shrink film used at its manufacturing facilities, helping reduce the use of virgin plastic resin.

In addition, the Company promotes sustainable packaging through the use of the Carbon Footprint Reduction (CFR) label on the paper labels of M-150 HI VIT B12 products, reflecting its commitment to reducing environmental impacts across the packaging value chain. This initiative forms part of the Company’s sustainable packaging strategy and communicates its efforts to reduce packaging-related greenhouse gas emissions to consumers in a transparent and tangible manner. The initiative was implemented in the third quarter of 2025, marking another step in integrating environmental considerations into commercial product development.

Recycle — Enhancing Packaging Recyclability

Osotspa displays recycling symbols on its packaging to communicate the recyclability of packaging materials and help consumers properly sort packaging waste, increasing the likelihood that used packaging is effectively collected and returned to the recycling system.

The Company also collaborates with Thai Beverage Can Co., Ltd. on the Aluminium Loop CAN: Can-to-Can Circularity initiative to promote closed-loop recycling of aluminum cans through selected beverage brands, including Calpis Lacto and M-150 Sparkling. Aluminum cans are 100% recyclable and can be recycled repeatedly without losing their inherent material properties. The Company expanded the use of Aluminium Loop CAN packaging to Calpis Lacto and Shark products.

In 2025, 29,390,072 Osotspa aluminum cans were collected, representing 353.9 tons of aluminum recycled and contributing to a reduction of 2,069 tons of CO₂ equivalent (tCO₂e) in greenhouse gas emissions.

A symbol designed to raise consumer awareness of aluminum cans as infinitely recyclable packaging that can be collected and recycled through a closed-loop recycling system in Thailand.

Collaboration — Advancing Sustainable Packaging Through Partnerships

Extended Producer Responsibility (EPR)
Collaboration with Industry Partners
  • Thailand Institute of Packaging and Recycling Management for Sustainable Environment (TIPMSE), The Federation of Thai Industries
  • Thai Beverage Industry Association
  • Industry peers
Osotspa collaborates with industry associations and manufacturers to plan and develop the “Pack Back” initiative, with the aim of establishing a model for the management of post-consumer packaging waste.
Bottle-to-Bottle Project
Collaboration with Customers and Consumers
  • Small retailers and Thong Fah shops
  • Motorcycle delivery service providers
  • Local communities
  • Bangkok Metropolitan Administration (BMA)
  • Pollution Control Department (PCD)
  • Department of Internal Trade (DIT)
Osotspa collaborates with small retailers and Thong Fah shops to develop new approaches that promote circular economy principles. The Company is developing a replicable collection and recycling model that encourages waste separation and collection, enabling post-consumer packaging to be effectively channeled into the recycling process.
Sustainable Cullet Sourcing
Collaboration with Suppliers and Distributors
  • Wongpanit – Recyclable waste collector and supplier
Osotspa collaborates with cullet suppliers to promote the collection of post-consumer glass waste from local households and return it to the recycling process. In 2025, the Company collected 136,093 tons of cullet through this initiative.
Sustainable Packaging Initiatives
Collaboration with Manufacturers and Suppliers
  • Thai Beverage Can Company Limited
  • SCG Chemicals Public Company Limited
  • PTT Global Chemical Public Company Limited
  • ENVICCO Limited
  • UPM Raflatac Company Limited
Osotspa is committed to driving positive change across the value chain. The Company works closely with manufacturers, material processors, and suppliers to advance sustainable packaging initiatives through ongoing engagement and knowledge exchange. These collaborations provide a foundation for the continued development and advancement of Osotspa’s sustainable packaging initiatives.

Packaging Material Use in 2025

Packaging Type Reporting Coverage (% of Cost of Goods Sold) Total Weight (tons) Recycled and/or Certified Material (% of Total Weight) 2025 Target (% of Total Weight)
Wood, Paper and Natural Fiber Packaging 100% 11,692.66 26.04% 75%
Metal Packaging (e.g., Aluminum or Steel) 100% 9,760.45 91.34% 75%
Glass Packaging 100% 222,710.44 100% 75%

Plastic Packaging in 2025

2022 2023 2024 2025
Total Weight of Plastic Packaging (tons) 6,701.00 6,443.00 6,790.89 6,464.91
Proportion of Recyclable Plastic Packaging (% of total plastic packaging weight) 91% 92% 93% 91%
Proportion of Compostable Plastic Packaging (% of total plastic packaging weight) 0% 0% 0% 0%
Proportion of Recycled Content Used in Plastic Packaging (% of total plastic packaging weight) 0.00% 2.80% 2.22% 1.21%
Reporting Coverage (% of Cost of Goods Sold) 100% 100% 100% 100%