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Growth in the value of the domestic market for pharmaceuticals is forecast to slip to just 2.5% in 2021. This is largely due to Thailand’s 3rd wave of Covid-19, which has caused a drop off in hospital visits for those seeking treatment for less serious conditions. However, over 2022 and 2023, annual growth in the market should accelerate to 3.5% on: (i) a rising concern among Thais over personal health and wellness, itself partly a side-effect of the Covid-19 pandemic; (ii) the aging of Thai society, which is driving an increase in the number of individuals needing treatment for chronic non-communicable diseases; (iii) the broad coverage provided by the Universal Health Coverage scheme; and (iv) the return of foreign patients to Thai hospitals.

The domestic market for medical devices will expand through 2021 at a rate that will closely mirror that of a year earlier, while exports will continue to enjoy strong growth, and although the severity of Thailand’s 3rd wave of Covid-19 infections has temporarily closed the market for medical tourism and severely undercut the number of domestic patients seeking treatment for less severe conditions, demand for single-use consumables

The pharmaceutical industry includes modern medicine. And medical supplies used in the diagnosis and treatment of all types of diseases

The value of the domestic market for pharmaceuticals is expected to grow by 4.5-5.0% in 2022 relative to the 2021 figure, thanks to the easing of fears about COVID-19 and the return of the Thai economy to somewhere close to its normal level, with the subsequent rebound in growth then feeding into stronger spending power. Over 2023 to 2025, the market is expected to continue to grow thanks to the likely ongoing rise in incidences of chronic non-communicable diseases (NCDs), the extension of universal health coverage programs to cover the whole of the Thai population, the increasing number of foreign patients seeking treatment in Thai hospitals,

Krungsri Research’s forecast is that in the period 2019-2021, the value of pharmaceuticals distributed to the domestic market is expected to grow by 4.2-4.6%. This outlook is based on: (i) rising rates of illness, especially of non-communicable conditions; (ii) growing number of aging population; (iii) the extension of universal healthcare coverage to essentially all of the population, which has led to a steady increase in expenditure on medicines by hospitals; and (iv) the expansion in medical tourism and the rise in the number of foreign patients seeking treatment in Thai hospitals. Meanwhile, as regards the value of exports, the possibility now exists to expand markets within the ASEAN zone following Thailand’s admission to the Pharmaceutical Inspection Co-operation Scheme (PIC/S) and Thai manufacturers’ having achieved the ‘Good Manufacturing Practice’ (GMP) standards. These developments have also helped to strengthen consumer confidence in Thai-made pharmaceuticals.

1/ The Thai rubber industry consists of 1) the Upstream rubber industry, which refers to rubber farmers who cultivate natural rubber (NR), tap fresh latex, and in some cases, perform primary processing into dry rubber forms (such as cup lump, rubber scrap, unsmoked rubber sheet, and crepe rubber), where almost all of Thailand's upstream rubber output is used as raw material for the domestic intermediate rubber industry; 2) the Intermediate rubber industry, or processed rubber industry, which involves taking upstream rubber products from farmers and processing them into intermediate rubber products, such as ribbed smoked sheets (RSS), technically specified rubber (TSR), concentrated latex, compound rubber, and mixtures with characteristics and properties suitable as raw materials for downstream rubber product manufacturing; and 3) the Downstream rubber industry, or rubber product industry, such as tires, rubber gloves, condoms, and elastic thread, in which certain types of downstream rubber production may utilize synthetic rubber (SR), a petrochemical product, as a co-raw material to achieve properties appropriate for manufacturing each specific type of downstream rubber product. 2/ This comprises rubber sheets, technically specified rubber (TSR), concentrated latex, compound rubber, and mixtures, as assessed by the export value of natural rubber and the value of natural rubber consumed domestically. 3/ Calculated based on dry rubber content (DRC) only, excluding water and other chemical mixtures. 4/ Other products cover industrial rubber products, machine parts, and general consumer goods, which are categories characterized by high demand elasticity. When the global economy slows down, the manufacturing sector and purchasing power within the luxury and non-essential goods segments are the first to experience a decline. 5/ Elastic thread is primarily utilized within the apparel and textile industries. 6/ The rubber product weight measured at customs checkpoints, when calculated specifically for dry rubber content (DRC), totals 3.3 million tonnes. This is based on an average DRC for concentrated latex of 60.0%, while the average DRC for compound rubber and mixed rubber ranges between 80.0-95.0%. 7/The export of HS Codes 4001 and 4002 via the Mekong River route decreased from 20.0% to 0.0%, which enhanced Thailand's competitiveness to a level comparable with the CLMV group. 8/The HS Codes consist of 4001, 4005, and 400280. 9/Assuming no permanent felling of rubber trees and a lack of cooperation in supply reduction among major Asian rubber-producing nations. 10/ According to the National Oceanic and Atmospheric Administration (NOAA), the most recent El Niño occurred during 2023-2024, resulting in a relatively high probability of La Niña during 2025-2026. Krungsri Research expects this condition to persist for 1-2 years, after which weather conditions are likely to return to neutral, with a projected transition back to El Niño in 2027-2028. 11/ This is a result of government schemes that ran over 2003-2013 that had the goal of expanding the total area of rubber plantations by 1 million rai. 12/ Generally, rubber trees begin to provide high and consistent latex yields when they reach 10-20 years of age. 13/ Having first emerged in Thailand in 2019 and persisting through 2023, outbreaks of rubber leaf fall disease involve both existing and emerging strains and can be found across all cultivated rubber varieties. The disease is difficult to control and eradicate, with current strains identified as either Pestalotiopsis sp. or Colletotrichum sp. fungi. Transmission occurs via wind and rain, as well as through the movement of saplings or planting materials from infected plots. This results in stunted tree growth and leads to a significant reduction in production volume of approximately 30.0-50.0%. 14/ Thailand is currently categorized within the low-risk group of countries. Regarding enforcement, the implementation date has been rescheduled to December 30, 2026, while for small and medium-sized enterprises (SMEs), enforcement is expected to commence around June 2027. 15/ The European Union Corporate Sustainability Due Diligence Directive (CSDDD) will begin enforcement for large companies (with more than 5,000 employees and global revenue exceeding EUR 1,500mn) starting July 26, 2027, with full implementation expected by July 26, 2029. 16/ Adaptation guidelines following ESG and SDG trends in the Thai rubber industry include the Environmental pillar, where operators focus on eco-friendly production by utilizing energy and water efficiently, maintaining standard wastewater treatment and odor filtration systems, and implementing waste segregation across the entire supply chain while restoring nature through reforestation and green space creation. Regarding the Social pillar, operators enhance quality of life and safety standards by complying with occupational health laws, emphasizing community engagement through local employment, supporting education, and providing disaster relief assistance. For the Governance pillar, operators establish policies rooted in procurement transparency and information disclosure, ensuring equal treatment of labor, fostering strong customer relationships, and instituting anti-corruption regulations in all forms within the organization. 17/ The rising prices of chemicals used in processing raw rubber and smoked rubber sheets have impacted farmers' costs, leading some to reduce fertilizer application for rubber trees. Consequently, the dry rubber content (DRC) of fresh latex has declined from 30-35% and may drop to 25-29%.

In 2020 operating results of private hospitals have been under pressure from the COVID-19 epidemic, affecting purchasing power of Thai and foreign patients

Private hospital business is expected to enjoy average annual growth of 10-13% from 2019 to 2021. Business expansion will be underpinned by structural changes in Thai demographics, including the aging society, continuing urbanization, and the ongoing growth of the middle classes. In addition, increasing health-awareness trend globally with personal health and wellness will also help to support sectoral growth.

Thai manufacturers of medical devices should enjoy solid rates of growth over the period from 2023 to 2025, with the value of goods distributed domestically and internationally forecast to expand by averages of respectively 5.5-7.0% and 6.5-7.5% annually. Markets will be lifted by a number of tailwinds, including the aging of society and the accompanying rise in rates of illness, the threat of newly emerging diseases, growth in demand for medical tourism (a market where Thailand is recognized globally for its high quality of care and low costs)

The concept of “Pet Humanization”, or treating pets as children or family members, has become increasingly widespread.