Thailand is an emerging country with a powerful and growing economy. As a matter of fact, its economic growth is projected to reach 3.2% in 2024. While it is an interesting market to invest in, it is still following major market trends which are important to process in order to build a successful business.
Through this article 5 Thailand focused key market trends for 2024 will be discussed: the digital transformation and the e-commerce expansion, the digital banking & fintech revolution, the green initiatives & sustainability, the technological advancements in manufacturing and lastly the changing consumer behavior post-COVID-19.
Digital Transformation and E-commerce expansion trend market
As in most countries the economic growth is now greatly driven by the growth in digital services and e-commerce. In Thailand, the digital landscape is growing faster and faster, it now became one of the most crucial levers to build a successful company. As a matter of fact, according to the digital economy promotion agency, a significant e-commerce growth is predicted for 2024 with an increase of 20% of online transactions.
In addition, the Thai government is prioritizing the development of this digital economy through different initiatives, better infrastructures and new regulatory frameworks that have already been or have yet to be implemented. Fintech & digital banking are also two main parts of the Digital revolution that have to be taken into account when building a corporate strategy.
Digital banking & fintech revolution trend market
Fintech is one of the current topics that has to be mentioned in a company’s strategy. As the Fintech revolution is happening, Thailand, its government and its banks are forced to quickly adapt to this new way of living, working and trading. While it brings a fair number of advantages such as the efficiency of service, the innovation and the accessibility, it also comes with challenges such as the security of data or of consumers for instance.
According to the Bank of Thailand predictions, the number of fintech services users will increase by 30% in 2024. Thus, as a business it is crucial to be ready for this revolution as it will drastically change the professional world both for the company and the customer.
Green initiatives and sustainability trend market
70% of the companies in Thailand are considering implementing sustainable practices to their business by 2024, it is the striking figure mentioned by the Federation of Thai Industries. Thailand is pushing more and more towards a more sustainable way of living and working in the country through important green initiatives. They are improving in terms of thrash management, plastic bags reduction, eco-friendly & sustainable agriculture but also on eco-friendly certifications for companies in the country.
This last point is a great challenge for the future of Thai companies as we can foresee that certified companies will be highlighted and favored in the upcoming years, their brand image will definitely improve and they will probably be favored in terms of funding or any type of financing.
Technological Advancements in Manufacturing trend market
1.5 billion dollars, this is the expected investment in automatization by 2024, according to the Thai Ministry of Industry. This figure illustrates how key is the technological advancements in manufacturing for any company in Thailand.
During the past few years, enormous progress has been made in this field, yet, progress has still to be made in the upcoming years. Companies have to keep up with the flow of new technologies appearing every year.
As a matter of fact, all these innovations greatly impact the productivity as well as the international competitiveness of both companies and Thailand as a country. Thus, the companies’ capacity to stay up to date on these operating methods will be decisive for the Thai economy as a whole.
Changing Consumer Behavior Post-COVID-19 trend market
One everlasting challenge since it happened in 2020 is the changes in consumer behavior post COVID-19. Following the pandemic, consumers are more inclined to new habits such as online shopping (45% of Thai consumers plan to increase their online shopping in 2024 according to Nielsen), the rising importance of health & well-being, the flexibility at work (obviously remote work for instance) as well as the raise of awareness on the local consumption & sustainability of products and services.
It is important to note that both the online shopping habits and the sustainability were previously mentioned in this article, these are two crucial points to currently work on in order to be successful as a (Thai) company.
Through this article 5 of the main trends for 2024 were identified: the digital transformation with the e-commerce expansion, the fintech revolution with the digital banking, the sustainability & the green initiatives taken by the government, the technological advancements in manufacturing and lastly the main challenge of these past 3 to 4 years, the changes in consumer behavior due to the pandemic.
It is now crucial for each and every company based in Thailand to consider all those trends when it comes to their strategy for 2024. Taking it as opportunities and capitalizing on these trends will help any business to grow this year.
At Gorioux Siam we are very aware of these trends. We will efficiently work with Thai companies in order to embrace these exciting challenges for 2024. Contact us to benefit from a personalized strategic counseling to make sure together that 2024 will be bright for your company.