• In 2025, total revenue from the water products business is expected to grow by around 0.6%, supported by tap water (+0.7%) and industrial water (+8.4%), while revenue from raw water is projected to decline by 5.2% from the previous year.
• Revenue from tap water sales is expected to grow by 0.7% in 2025, driven by a continued increase in the number of tap water users, despite a downward trend in tourism-related demand. Meanwhile, revenue from industrial water sales is forecast to grow by 8.4%, supported by higher sales volume and a greater share of value added water products.
• However, raw water is the only product category in which sales revenue is expected to decline in 2025, contracting by approximately 5.2% due to reduced demand from the industrial sector, which is the main market and has higher selling prices than the household consumption sector.
Overview of the water products business
Currently, revenue from tap water accounts for the largest share at approximately 56%, followed by raw water at around 24%, and industrial water at about 20%.
In 2025, total revenue across all water product categories is expected to increase by 0.6%. The main drivers of growth are the anticipated increases in revenue from tap water and industrial water. However, the decline in revenue from raw water sales is expected to exert downward pressure on overall industry revenue growth.
Water Supply Providers
The distribution of tap water by private companies requires a government concession that specifies the service area, duration, and operating conditions. In general, tap water operators tend to have high gross profit margins (exceeding 60%), leading to strong interest from private companies to invest in various areas, particularly in urban communities outside Bangkok.
The volume of tap water sales by private companies is expected to grow by 0.5% in 2025 (Figure 2), supported by a continued increase in the number of tap water users, despite a downward trend in tourism related demand.
Urban expansion and the increasing number of tap water users continue to support the sales outlook. However, in 2025, the business may face pressure from an expected 2.8% decline in international tourist arrivals, leading to a downward trend in tap water demand, particularly from service sector businesses in tourism focused areas.
Revenue from tap water sales is expected to increase by 0.7% in 2025 (Figure 3), supported by continued growth in sales volume and upward price adjustments in accordance with state enterprise concession agreements. Concession contracts for tap water typically allow operators to raise prices annually in line with inflation, resulting in a positive revenue outlook for 2025.
However, the overall revenue of Thailand’s tap water business remains approximately 19.8% below the 2023 level. This is because one of the major private tap water producers saw its concession contract expire in late 2023 and was subsequently shifted to a management service contract for tap water production, which offers a lower purchase price than the previous concession arrangement.
Industrial Water Suppliers
The volume of industrial water sales is expected to increase by 7.6% in 2025 (Figure 4), driven by the expansion of major producers into the industrial water market.
The expansion of major producers from providing only raw water services to offering industrial water services—including both general industrial water and value added water—has encouraged some industrial customers, particularly small factories with specialized water requirements, to purchase industrial water directly from producers to reduce costs, instead of buying raw water and processing it themselves.
Total revenue from the industrial water market is expected to grow by 8.4% in 2025 (Figure 5), supported by higher sales volume and an increasing share of value added water products.
The average selling price of industrial water in 2025 is expected to increase by approximately 0.8%, supported by growth in sales of value added water products, which have an average unit selling price at least 25% higher than general industrial water. For some major operators, the share of value added water in total industrial water sales has risen from only 5% in 2020 to more than 15% in 2024.
However, despite growth in both sales volume and revenue, expansion of the industrial water business remains limited, as key customer groups continue to face pressures from the ongoing trade war and excess supply of goods from China.
Raw Water Suppliers
Raw water suppliers classify their customers into two main segments:
1) The industrial sector (60%–70% of total sales volume):
The main customers are factories and water service providers in industrial estates.
The raw water tariff for this group typically starts at around 11.50 baht per cubic meter.
2) The consumption sector (30%–40% of total sales volume):
The primary customers are water authorities, which use raw water to produce tap water for resale. The raw water tariff in this segment is approximately 9.90 baht per cubic meter.
The volume of raw water sales by private companies is expected to decline by 4.5% in 2025 (Figure 6). The main downward pressure comes from reduced industrial demand, even though the consumption sector continues to grow.
Demand is expected to decline in line with Thailand’s Manufacturing Production Index (MPI) in 2025, which is forecast to drop by more than 3.4%. This is a result of the ongoing trade war that has negatively affected manufacturing and export activities, particularly in the electronics, automotive, electrical appliances, and food product sectors—industries that consume large volumes of raw water.
In addition, some customers have shifted to purchasing industrial water directly to reduce costs rather than buying raw water for self-processing, further pressuring raw water sales volumes.
Therefore, although raw water sales to the consumption sector are still expected to grow in line with increasing demand from government tap water production, this will not be sufficient to support overall raw water sales volume in 2025.
Total revenue from the raw water market is expected to decline by 5.2% in 2025 (Figure 7), due to shrinking demand from the industrial sector, which has both higher consumption volume and higher selling prices than the household consumption sector. Revenue per unit from sales to the industrial sector is more than 16% higher than that from the household consumption sector.
Medium- to long-term risks for Thailand’s water products industry
• The Zero Liquid Discharge (ZLD) wastewater treatment process has gained increasing popularity among industrial operators, especially large-scale manufacturers. This is because ZLD technology can treat and recycle almost all wastewater, helping reduce costs and minimizing environmental impact. As a result, industrial demand for purchased water may decline in the future. The global ZLD market is expected to increase from USD 6.3 billion in 2023 to USD 10.3 billion in 2032, representing an average annual growth rate of 5.5%.
• Concession contract risks and regulatory risks from the government: The growth outlook for private-sector tap water businesses largely depends on government policy, regarding private participation in public utilities. Expansion of service areas requires government approval or concession bidding. Moreover, when existing concessions expire, companies may not receive extensions or may face amended terms, which could affect revenue and sales volume.
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