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Industry Outlook Analysis

16 Mar 2021


Thailand’s xEV market to grow by at least 69 percent in 2021; share of domestic xEV sales to account for more than half of total automobile sales in less than 10 years (Current Issue No.3196)

KResearch projects that the sales of Hybrid Electric Vehicles (HEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) in 2021 will likely amount to 48,000-50,000 units, or growth of 63-70 percent YoY. Such innovative vehicles are set to become the standard models for numerous car brands, providing the f... Read more

12 Mar 2021


Consumers Are Willing to Pay More for Eco-Friendly Products and Services if Prices Do Not Exceed 20% of Regular Prices (Current Issue No.3194)

KResearch is of the view that although Thais have increasingly attached importance to environmental problems, their decision to purchase eco-friendly products and services may depend on many factors. These include whether such products and services help address environmental issues, or not, and thei... Read more

25 Feb 2021


Thai Chip Packaging Business, 2021: Growing 5.2%, Thanks to 5G Adoption and Recovery in Global Automotive Market (Current Issue No.3193)

The COVID-19 pandemic has significantly bolstered global demand for microchips. This is because it has triggered changes in the business sector and prompted consumers to increasingly use digital technology in their businesses and daily life while also accelerating the transition towards 5G technolog... Read more

17 Feb 2021


Myanmar politics present high risk to auto production over the long term; faltering demand could see Thailand’s car exports to Myanmar grow by only 2% in 2021 (Current Issue No.3189)

Following the coup d’ètat in Myanmar, investors’ concerns towards the unrest and upcoming government actions have intensified. The automotive industry has already dealt with frequent changes in policy and regulations over the past few years. From KResearch’s viewpoint, Myanmar was until recently an ... Read more

28 Jan 2021


Fishery product export 2021: New COVID-19 wave to have short-term impact; while rising cost and intense competition may cause contraction of -5% to 0% (Current Issue No.3184)

KResearch assesses that the new wave of COVID-19 outbreak in Thailand may affect trade partners’ confidence in food safety in the short run. Subsequent challenges for Thai fishery product exporters will likely be limited consumer demand and fierce competition in the fishery market as rivals prepare ... Read more

27 Jan 2021


Non-alcoholic beverage market projected to reach THB 200 billion in 2021; functional and specialty beverages outperform the market (Current Issue No.3182)

The COVID-19 situation, both domestic and international, continues to be fraught with uncertainty as purchasing power comes under pressure and consumers tend to spend more cautiously. Moreover, the COVID-19 prevention and control measures in Thailand include restrictions regarding on-premise dining ... Read more

14 Jan 2021


Thai Auto-Tire Makers Facing US Anti-Dumping Duties: Long-term Cost Cuts Needed to Maintain Competitiveness (Current Issue No.3179)

On December 30, 2020, the US Department of Commerce announced affirmative preliminary determinations in the antidumping duty (AD) investigations of passenger vehicle and light truck tires (passenger tires) from Thailand, Taiwan, South Korea and Vietnam. It preliminarily determined that exporters fro... Read more

9 Dec 2020


Air Conditioner Exports: Product Restructuring Needed to Brace for Competition from Key Rival Vietnam and Technological Transition (Current Issue No.3169)

Thai air conditioner exports are set to face numerous challenges ahead. These include competition from new rivals like Vietnam in the inverter air conditioner segment (normal model), plus the fact that consumers in emerging markets have increasingly purchased inverter air conditioners, and this has ... Read more

4 Dec 2020


Food and beverage exports 2021: Growth projected at 1-5%; adjustment to ‘New Normal’ represents the most urgent issue (Current Issue No.3165)

KResearch projects that the total value of Thai food and beverage exports for 2020 will stand at USD 24.9 billion, equivalent to growth of 3.0 percent YoY as the COVID-19 crisis has driven up demand for food products among Thailand’s trade partners. Moreover, Thai manufacturers have been able to mai... Read more

18 Nov 2020


From Trump to Biden: Thai auto parts exporters should hasten to adjust their strategies to cope with several major changes in the US (Current Issue No.3161)

Entering 2021, the Thai auto parts industry may have to contend with new challenges that have emerged in the US, one of its primary importers. Of late, the US has announced the suspension of GSP privileges, which included many auto parts that are produced in Thailand. For this reason, Thai auto part... Read more

2 Nov 2020


Indonesia Set to Become Thailand’s Rival in BEV Production (Current Issue No.3156)

Electric vehicles (EVs) have increasingly made their presence felt within ASEAN, in particular investment in EV production in Thailand and Indonesia. Currently, Thailand has an edge over Indonesia in terms of EV manufacturing, thanks to the government’s clear policy of supporting the EV industry. Si... Read more

28 Oct 2020


Key Industries May Recover at Different Paces in 2021, Though Most of Them Unlikely to Resume Growth at Pre-COVID-19 Levels (Current Issue No.3153)

Under assumptions that there is no serious resurgence of the coronavirus (COVID-19) pandemic in Thailand, which allows the relevant authorities to gradually relax international travel restrictions, and the majority of people in Thailand receives COVID-19 vaccines in late 2021 while the domestic poli... Read more

8 Oct 2020


5G Smartphone Market, 2020: Taking Some Time to Reach Mass Market (Current Issue No.3147)

Due to increased competition in the telecom sector and a staggering investment in 5G networks at more than THB10 billion, Thai telecom operators are now accelerating the expansion of their 5G user bases by inducing more consumers to use 5G smartphones, which will in turn help boost the uptake of 5G ... Read more

1 Oct 2020


Issues regarding the policy to promote the use of domestic steel (Business Brief No.3146)

For the past several years, Thailand’s steel industry has encountered challenges that stem from price competition against steel imports from China due mainly to steel oversupply in the global market. Since 2014, Chinese steel manufacturers have cleared out their excessive stock via exports to market... Read more

24 Sep 2020


Mooncake Market 2020: Turnover set to contract by 15.8%, reflecting grim economic conditions (Current Issue No.3141)

KResearch expects the mooncake market for 2020 to be valued at an estimated THB800 million, or a contraction of 15.8 percent YoY, as the market has suffered a severe setback from deteriorating purchasing power as a result of COVID-19. This projected fall in market value is attributed to fewer partic... Read more

18 Sep 2020


Eco-friendly food and beverage packaging market may reach THB13-16 billion in 2025 (Current Issue No.3137)

The packaging waste crisis is worsening in line with an increase in consumption, the growth of convenience food and the massive expansion of food delivery services during the period of semi-lockdown measures to counter the spread of COVID-19. More than half of all packaging waste comes from food and... Read more

16 Sep 2020


Ministry of Commerce Bans Imports of E-Waste ... Eyeing imports of Used Electronics as They May Turn into Waste (Current Issue No.3134)

The Ministry of Commerce has issued a Notification on the ban of electronic waste (e-waste) imports per HS Codes 84 and 85, specifically for Commodity Code 899, or the ban of e-waste imports under the Basel Convention, effective September 15, 2020. Currently, Thailand’s imports of electronics classi... Read more

27 Aug 2020


FTA backs automotive industry, establishing links to global supply chains and boosting cars and auto parts exports and investment (Current Issue No.3129)

Presently, automobile and auto parts manufacturers, especially Japanese brands, are progressively moving away from production processes that emphasize keeping costs low, like lean production, to production that leans more towards agile supply chains in order to quickly respond to potentially volatil... Read more

24 Jul 2020


Sustainable business management: mechanism to steer the economy and society towards the future (Current Issue No.3127)

Based on the Environmental Performance Index (EPI) for 2020, Thailand is ranked at no. 78 in the world, moving up from no. 121 in 2018 – which is better in comparison to countries of similar ranking in 2018, such as China and the Philippines. In consideration of the various indicators, Thailand has... Read more

8 Jul 2020


Extension of Relief Measures for SMEs Keeps Economic and Financial Systems Intact (Current Issue No.3123)

The coronavirus (COVID-19) pandemic has adversely affected both the business sector and households, with SMEs being the major casualty. For this reason, financial assistance measures are geared towards SMEs during 1H20. Since a debt moratorium, which is one of those important measures, is due to exp... Read more

11 Jun 2020


Packaging for last-mile delivery business to hold a value of THB14.4 billion in 2020; 15-18 percent growth amid intense competition (Current Issue No.3117)

The packaging business has had to contend with challenges from COVID-19 and economic conditions that have caused a decline in consumers’ purchasing power. Demand for packaging in downstream industries is likely to drop, in line with a slowdown in the manufacturing sector. The overall packaging busi... Read more

5 Jun 2020


COVID-19 steers food processing industry towards automation; reducing labor intensity and raising food safety standards (Current Issue No.3116)

The spread of COVID-19 and a labor shortage have pushed the food processing industry, which is extremely labor intensive, to consider increased usage of automation. Apart from lowering production risks that are associated with manual labor, the system plays a part in raising safety standards in food... Read more

19 May 2020


Game Cloud Computing: New Business with Promising Growth via Understanding of Thai Consumers (Current Issue No.3111)

The coronavirus (COVID-19) pandemic has not only resulted in the growing popularity of gaming, but also opened business opportunities for game cloud computing (GCC) entrepreneurs in Thailand. Given this, we at KResearch have assessed that turnover in the GCC market may grow from THB7.3 billion repor... Read more

7 May 2020


COVID-19 causes Thai auto industry to plunge to a 9-year low… leading to supply chain adjustments and new parts production processes (Current Issue No.3107)

The ongoing COVID-19 global crisis has affected the Thai automobile industry in many different aspects, as the economic recession which is playing out in Thailand and at the international level remains the key factor impacting purchase orders for cars, both domestically and in export markets. As a c... Read more

30 Apr 2020


COVID-19 to cause 21% plunge in Thai PCB exports for 2020 before rebound next year in response to 5G trends and changing consumer behavior (Current Issue No.3103)

The COVID-19 pandemic in 2020 is likely putting pressure on the value of Thailand’s exports of Printed Circuit Boards (PCBs), with an expected contraction of 20.9 to 23.6 percent, for an estimated export value of USD 927.4 - 960.8 million, in line with reduced global demand for electronic products. ... Read more

10 Apr 2020


China moves to invest and expand its automobile market abroad; quick preparations needed for Thailand, especially in EVs (Current Issue No.3097)

At present, China has established a rising trend in car exports and increasingly invested in automobile production across multiple countries around the world, especially in the category of electric vehicles (EV), which have been considerably well-received, even in the automobile markets of developed... Read more

14 Feb 2020


COVID-19 affects 2020 Thai auto market to the tune of 900,000 units and Thai OEM parts for local market and exports (Current Issue No.3086)

The outbreak of novel coronavirus (COVID-19) with the epicenter in China has become unpredictable as it is spreading, adversely affecting the economy worldwide, including China’s automotive sector and the global auto industry, including Thailand’s. All automotive sectors are suffering contraction. C... Read more

12 Feb 2020


Investment in 5G technology...telecom operators face various challenges in terms of market, costs and technology (Current Issue No.3084)

In 2020, Thailand’s wireless communication technology is about to experience another turning point. The National Broadcasting and Telecommunications Commission (NBTC) will auction the 5G spectrum in the 700 MHz, 1800 MHz, 2600 MHz and 26 GHz frequency bands on February 16, 2020, aiming to roll out t... Read more

5 Feb 2020


Coronavirus outbreak dampens airline business, causing Thai airline business value to contract by 4.3-6.2 percent. (Current Issue No.3080)

The airline businesses have faced tough challenges due to pricing competition, which has steadily reduced the average airfares. Moreover, the demand for air travel began to slow, resulting in a drop in airline business value for the first time in 2019 to 314 billion Baht.... Read more

4 Feb 2020


2020 Car Exports: Shrinking at Least 3% as Thailand’s Trade Partner Economies Hurt by Novel Coronavirus Outbreaks (Current Issue No.3079)

2020 may be another difficult year for Thai car exports. Despite a positive factor, i.e., a likelihood that the Baht may not be as strong as that seen in 2019, there are a number of factors that may inevitably cause Thai car shipments to shrink in 2020. These include economic problems continuing fro... Read more

31 Jan 2020


The ban on single-use plastic bags…pushes business of more than 400 million eco - friendly bags in 2020 (Current Issue No.3078)

From January 1, 2020, Thailand has begun a campaign to ban single-use plastic bags under the Plastic Waste Management Road Map 2018-2030 of the Pollution Control Department. KResearch views that the ban will significantly reduce the amount of single-use plastic bags. It will affect supply chains of ... Read more

7 Jan 2020


The first-phase MRO at U-Tapao will almost double growth of Thailand’s aviation maintenance and repair market; Thailand should focus on wide-body aircraft to avoid competition with other main competitors in ASEAN (Current Issue No.3069)

Thailand is one of the aviation hubs in the Asia Pacific region, which is expected to experience a rising demand for aviation maintenance and repair services in the future. The future outlook has become clearer after a cooperative agreement for a Maintenance, Repair, and Overhaul (MRO) facility at U... Read more

12 Dec 2019


Ready-to-Eat Food Market, 2020: Growing 3-5%...Adjustments to Market Conditions and Weak Consumer Purchasing Power Needed (Current Issue No.3060)

We at KResearch view that turnover in the ready-to-eat food market may reach THB20.2-20.5 billion, increasing 3.0-5.0 percent YoY in 2020, thanks to the diversity of new products developed by related entrepreneurs as a result of heightened competition. Meanwhile, the domestic food and beverage marke... Read more

4 Dec 2019


Auto market in 2020 is likely to remain unchanged from 2019 at best… while the market for eco cars and EVs is set to grow (Current Issue No.3059)

KResearch views that the overall auto sales throughout 2019 will contract 2.5 percent from 2018, or totaling 1,015,000 units. The Bank of Thailand’s control measure for auto loan approval, launched in the middle of this year, has become a key factor pressuring auto loan sales.... Read more

28 Nov 2019


Tech disruption due to the trend for electric vehicles globally is affecting auto part producers, especially over 600 Tier-2 producers after 2027 (Current Issue No.3057)

In the past 2 to 3 years, the automobile industry has awakened to the realization that the era of electric vehicles (EV) is coming, resulting in a massive restructuring of the automotive part supply chain worldwide, including Thailand, in 2 aspects; the internal combustion engine (ICE) supply chain ... Read more