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Industry Outlook Analysis

17 May 2023

Agriculture

The Royal Ploughing Day marks the start of the rainy season and in-season rice cultivation, but El Nino during 2H23 may dent 2023 in-season rice output by 4.1-6.0% (Current Issue No.3410 Full Ed.)

The Royal Ploughing Day marks the start of the rainy season and in-season rice cultivation, but El Niño during 2H23 may dent 2023 in-season rice output by 4.1-6.0%... Read more

11 Apr 2023

Energy

Hydrogen technology… Expected increase in demand for renewable energy to drive green hydrogen production (Current Issue No.3402 Full Ed.)

Hydrogen technology… Expected increase in demand for renewable energy to drive green hydrogen production... Read more

10 Apr 2023

Tourism

PM2.5 crisis could get much worse if it is not quickly dealt with (Current Issue No.3401)

PM2.5 crisis could get much worse if it is not quickly dealt with... Read more

7 Apr 2023

Industry

Supply chain restructuring … Increasing costs while pressuring margins among electronics businesses (Current Issue No.3399 Full Ed.)

Supply chain restructuring … Increasing costs while pressuring margins among electronics businesses... Read more

31 Mar 2023

Services

Number of food delivery orders is set to decline, with an 8.0% YoY contraction seen in 1H23 (Current Issue No.3395)

We at KResearch expect the number of food delivery orders in 2Q23 may shrink slightly from that reported in the previous quarter despite several supporting factors. ... Read more

27 Mar 2023

Industry

Non-alcoholic beverage market, 2023: Growing in line with marketing and advertising drives (Current Issue No.3394)

Non-alcoholic beverage market, 2023: Growing in line with marketing and advertising drives... Read more

20 Mar 2023

Agriculture

Thai rice and cassava prices projected to increase during 2023 in line with stronger demand driven by China’s reopening (Current Issue No.3391)

Thai rice and cassava prices projected to increase during 2023 in line with stronger demand driven by China’s reopening... Read more

16 Mar 2023

Services

Cyber threats may cause consumers to purchase goods via B2C e-commerce with extra caution (Current Issue No.3389 Full Ed.)

Cyber threats may cause consumers to purchase goods via B2C e-commerce with extra caution... Read more

13 Mar 2023

Agriculture

Thailand's shrimp export growth expected to be in a range of -3.5 to 0.5 percent in 2023 amid a slowdown in major markets, despite demand from China (Current Issue No.3386)

Thailand's shrimp export growth expected to be in a range of -3.5 to 0.5 percent in 2023 amid a slowdown in major markets, despite demand from China... Read more

13 Mar 2023

Real Estate and Construction

Home sales, 2023: Remaining static or shrinking amid economic uncertainties, interest hikes and hefty household debts (Current Issue No.3387)

Home sales, 2023: Remaining static or shrinking amid economic uncertainties, interest hikes and hefty household debts... Read more

1 Mar 2023

Industry

Domestic BEV sales set to reach 50,000 units in 2023 (Current Issue No.3384)

Domestic BEV sales set to reach 50,000 units in 2023... Read more

24 Jan 2023

Trading

Thai exports grew 5.5% in 2022 while 2023 shipments projected to shrink at 0.5% despite China’s reopening (Business Brief No.3989)

Economic slowdown in Thailand’s trade partners during 2H22 and the high 2021 base caused Thailand’s outward trade in December 2022 to contract sharply for the third consecutive month at 14.6 percent YoY, equivalent to USD21,718.8 million. As a result, Thailand’s overall 2022 export growth stood at o... Read more

11 Jan 2023

Tourism

Chinese tourists projected to reach 4.65 million, driving rise in foreign tourist arrivals to 25.5 million in 2023 (Current Issue No.3380)

The Chinese authorities’ relaxation of quarantine rules for inbound travellers, cancellation of limited number of passengers on international flights from January 8, 2023, and resumption of the application and renewal of passports for Chinese residents, would benefit Thailand's tourism industry. As ... Read more

30 Dec 2022

Industry

Sales of PHEVs and BEVs in Thailand projected to reach 300,000 units by 2025 Despite increased demand for electric charging, there are investment risks in public charging points (Current Issue No.3379)

Thailand is transitioning towards a green vehicle society. KResearch is of the view that domestic sales of plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) may reach 300,000 units by 2025, suggesting that the demand for electric charging in the country will substantially... Read more

28 Dec 2022

Services

Retail business in 2023 … Growth continues amid numerous challenges (Current Issue No.3377)

KResearch views that retail sales in 2023 will see continual growth in line with economic conditions and consumer purchasing power. However, multiple challenges may persist. In 2023, the retail market is expected to expand by 2.8-3.6 percent YoY, thanks to the return of foreign tourists, rising prod... Read more

27 Dec 2022

Tourism

Over 1 million Chinese tourists set to visit Thailand in 2023 (Business Brief No.3984)

After the Chinese government began easing domestic lockdown measures in November 2023, it recently announced the relaxation of inbound travel restrictions, effective January 8, 2023, which is sooner than expected by observers. Therefore, it is most likely that Beijing will allow Chinese nationals to... Read more

21 Dec 2022

Tourism

Thai and foreign tourists set to spend around THB30 billion in Thailand for December 30, 2022 - January 2, 2023 (Current Issue No.3374)

It is expected that Thailand’s tourism will be busy once again after a two-year hiatus as more Thais intend to travel in the country while foreign travelers are planning to visit Thailand during the upcoming New Year 2023 festive season. As a result, cash flows in travel-related businesses here may ... Read more

19 Dec 2022

Industry

Thai sugar exports projected to grow only 1-5% in 2023 due to numerous challenges (Current Issue No.3372)

Sugar is one of the products that will likely help boost Thai food and beverage exports during 2022 and through to 2023, thanks to the elevated global sugar prices and recovery in domestic sugar output. Additionally, its demand remains intact as COVID-19 in many countries has begun to ease and due t... Read more

16 Dec 2022

Services

Food delivery business in 2023 may decline: Maintenance of sales turnover is a challenge (Current Issue No.3371)

Thailand’s food delivery market is expected to see a slowdown due to increased economic activity and lifestyle changes that are seeing many more consumers return to dine-in and takeaway options. KResearch projects that market value of food delivery business going forward will be static or drop when ... Read more

9 Dec 2022

Tourism

2023 international arrivals projected to reach 20.0-24.0 million amid several challenges that lie ahead (Current Issue No.3370)

2023 international arrivals projected to reach 20.0-24.0 million amid several challenges that lie ahead ... Read more

7 Dec 2022

Trading

First anniversary of China-Lao PDR railway offers another export channel via Thailand’s borders to promising areas in China (Current Issue No.3369)

First anniversary of China-Lao PDR railway offers another export channel via Thailand’s borders to promising areas in China ... Read more

2 Dec 2022

Agriculture

Net farm income in 2023 may face multiple challenges…amid the risks of global economic slowdown and high production costs (Current Issue No.3368)

Overall net farm income in Thailand in 2023 is likely to face numerous challenges that are varied based on agricultural product type. This is because the global economic outlook is beset with risks that could trigger a drop in demand for farm products – especially uncertain demand from China – and a... Read more

18 Nov 2022

Industry

Trend of eco-friendly plastics pressures Thailand’s plastic resin industry…Operators accelerate their adjustments but still face multiple challenges (Current Issue No.3363)

Amid the global green trends, many countries have imposed environmental measures and have increasingly started to use eco-friendly plastics (recycled plastics / bioplastics) to replace fossil-based plastics. Such actions have affected Thailand’s plastic resin industry, which still relies mainly on s... Read more

16 Nov 2022

Services

B2C e-commerce in 2022-2023…Growth decelerates due to limited purchasing power (Current Issue No. 3361)

KResearch views that market value of B2C e-commerce in 2022-2023 will grow at a slower pace after reaching double-digit growth during COVID-19. In 2023, the market is expected to expand at around 4-6 percent – the lowest when compared to its average growth of 26 percent per year over the past three ... Read more

15 Nov 2022

Tourism

Active domestic tourism at year-end; full-year 2022 domestic tourism projected to reach 150.8 million trips (Current Issue No.3359)

Active domestic tourism at year-end; full-year 2022 domestic tourism projected to reach 150.8 million trips (Current Issue No.3359)... Read more

3 Nov 2022

Agriculture

Global coffee prices to remain high for another three years due mainly to a decline in Brazilian supply…leading Thailand’s coffee imports to grow substantially in 2022 (Current Issue No.23356)

Coffee prices in the global market have been rising since the end of 2021. Brazil and Vietnam – major coffee suppliers – have faced severe climate change causing damage to their production. High global coffee prices are expected to persist until a new round of Brazil’s coffee output enters the marke... Read more

2 Nov 2022

Real Estate and Construction

Uneven recovery seen in 2022 housing market, while a few supporting factors may inhibit growth in 2023 (Current Issue No.3355)

In 2022, housing market indicators have exhibited improving signs, but unevenly. Amid increased confidence towards the recovery in the economy and tourism after the COVID-19 pandemic has eased, residential developers have begun to resume investment in more new projects. However, new home purchases h... Read more

25 Oct 2022

Services

Turnover of restaurant business to grow in 2022-2023 amid the challenges of operating costs and profitability maintenance (Current Issue No.3352)

The restaurant industry is expected to revive going forward, driven by Thailand’s economic activity that has gradually returned to normal, along with recovery in the tourism sector. The number of Thai and foreign tourists which is on the rise, especially amid an expected surge in international touri... Read more

19 Oct 2022

Tourism

Hotel and lodging business, 2022: Recovering gradually, but at a meager pace (Current Issue No.3351)

Hotel and lodging business, 2022: Recovering gradually, but at a meager pace ... Read more

29 Sep 2022

Agriculture

Inundation during August-October 2022 may incur loss to Thailand’s major rice crop at roughly THB2.9-3.1 billion, so close attention must be paid to the severity of the flood situation, which remains highly uncertain (Current Issue No.3348)

It is expected that ongoing flooding across Thailand will hurt crop outputs during the rainy season, particularly rice as major rice outputs have gradually begun to enter the market, especially in the northeastern and northern regions, which are home to ‘Hom Mali’ rice cultivation and are being hit ... Read more

14 Sep 2022

Services

Convenience stores, 2022-2023: Recovering after COVID-19 … Maintaining steady sales growth amid intense competition needed (Current Issue No.3344)

The convenience store is another retail segment that has been affected by the COVID-19 pandemic over the past 1-2 years. In 2022, we at KResearch, however, expect that turnover in the convenience store business will resume growth of roughly 13-15 percent YoY, thanks to the low base of 2021.... Read more

30 Aug 2022

Industry

Exporters urged to pay close attention to the US Clean Competition Act and carbon taxes (Current Issue No.3341)

วุฒิสภาของสหรัฐได้เสนอร่างกฎหมาย Clean Competition Act ซึ่งประกอบด้วยมาตรการกำหนดการกลไกราคาคาร์บอน (Carbon Pricing) สำหรับสินค้าที่ผลิตในประเทศ และมาตรการปรับราคาคาร์บอนก่อนข้ามพรมแดน (Carbon Border Adjustment Mechanism: US-CBAM) สำหรับสินค้านำเข้า โดยกลุ่มอุตสาหกรรมเป้าหมาย ได้แก่ ผลิตและกลั่นปิโต... Read more

29 Aug 2022

Industry

Labour-intensive industries: Profits projected to decline by 5-15 percent due to minimum wage hike (Current Issue No.3340)

KResearch views that an increase in the average daily minimum wage by 5 percent starting October 1, 2022 will affect industrial costs in the last quarter of this year and into next year. This may lead to an average cost increase of around 0.5 percent and a decrease in operating profit by an average ... Read more

26 Aug 2022

Agriculture

Net income of rubber growers projected to reach roughly THB107.81 billion in 2022, down 4.9% YoY, pressured by higher costs of cultivation (Current Issue No.3339)

The overall income of Thai rubber growers may remain favorable at around THB261-271 billion in 2022, an increase of 2.8-6.6 percent YoY, supported primarily by prices. The average price of rubber sheet grade 3 may stand at approximately THB54-56/kg, driven by demand from the auto-tire and medical gl... Read more

27 Jul 2022

Industry

Results of behavioral survey and consumers’ views on problems related to environmental sustainability and their tendency towards ESG investment (Current Issue No.3337)

Results of behavioral survey and consumers’ views on problems related to environmental sustainability and their tendency towards ESG investment (Current Issue No.3337)... Read more

22 Jul 2022

Services

Nursing home business, 2022: Turnover to reach only THB12.7 billion (Current Issue No.3335)

Although consumer purchasing power is being pressured by the high cost of living and uncertainties surrounding COVID-19, the nursing home business may continue to perform relatively well during 2022 as it is one of the healthcare services that are necessary for many seniors/patients. Additionally, t... Read more

22 Jul 2022

Industry

BEV market attractive to potential players with readiness in the short term, though challenges remain in the long term due to ongoing industry developments (Current Issue No.3334)

Presently, competition in the domestic car market, particularly the BEV market, has changed significantly. Thailand has undertaken greater efforts of investment to retain its domestic automotive industry by providing extensive support from this year through to 2025. ... Read more

21 Jul 2022

Services

Last-mile delivery business, 2022: Growing slower than in 2021 due to numerous challenges (Current Issue No.3332)

Last-mile delivery business, 2022: Growing slower than in 2021 due to numerous challenges... Read more

1 Jul 2022

Tourism

Cancellation of pandemic-related restrictions on inbound tourists effective July 1, 2022 – a main driver for Thai tourism in 2H22 (Current Issue No.3329)

On July 1, 2022, the Center for COVID-19 Situation Administration (CCSA) fully reopens the country for international tourist arrivals by cancelling Thailand Pass registration and health insurance requirements for foreigners – this action is a major supportive factor for Thai tourism, which has long ... Read more

29 Jun 2022

Agriculture

Thailand is at risk of a tighter rice supply in 2022 amid lower rice production caused by soaring chemical fertilizer costs (Current Issue No.3328)

In 2022, Thailand may be at risk of a tighter rice supply, caused primarily by chemical fertilizer prices that have hit multiple record highs amid the Russia-Ukraine conflict. In contrast, there has been pent-up demand seen for rice, as evidenced by higher rice exports, which have in turn pressured... Read more

22 Jun 2022

Services

Food delivery business set to face more challenges from sagging demand and high energy costs after COVID-19 has eased (Current Issue No.3326)

Food delivery business set to face more challenges from sagging demand and high energy costs after COVID-19 has eased (Current Issue No.3326)... Read more

19 May 2022

Agriculture

Price of chemical fertilizer (urea) is set to stay at elevated levels of USD 950-1,000/ton because of tight supply, but the impact on each economic crop may vary (Current Issue No.3325)

Prices of chemical fertilizers in the country have hit successive record highs in line with their raw material costs and tight global supplies due to the impact of the Russia-Ukraine conflict. ... Read more

29 Apr 2022

Tourism

Full reopening scheduled for May 1, 2022, an important step for Thailand’s international tourism (Current Issue No.3323)

Thailand is one of many countries that have significantly eased entry requirements on international arrivals, considering the country’s current COVID-19 situation. According to the Asia travel-readiness index compiled by the Economist Intelligence Unit (EIU), Thailand was one of the highest-scoring ... Read more

27 Apr 2022

Trading

Things exporters should know about the EU CBAM (Current Issue No.3322)

The Carbon Border Adjustment Mechanism (CBAM) is one of the key elements of the ‘Fit for 55’ package under the European Green Deal, which sets out a clear path towards realizing the EU’s target of a 55 percent reduction in carbon emissions compared to 1990 levels by 2030 and to become a net-zero co... Read more

7 Apr 2022

Industry

Solar rooftops in business sector set to grow over 54% in 2022, supported by rising electricity costs (Current Issue No.3320)

Amid rising electricity costs, driven by elevated fossil fuel prices as a result of the Russia-Ukraine crisis, bright prospects are being seen in solar rooftop investment in the business sector as entrepreneurs have to save on electricity costs while also responding to the clean energy trend even as... Read more

1 Apr 2022

Industry

Sales of Chinese BEVs set to exceed 10,000 units in 2022 amid gloomy domestic car market (Current Issue No.3319)

New supportive measures introduced by the government have substantially helped bolster the Thai BEV market. Intense competition has quickly been seen in the BEV market as Chinese carmakers capitalized on the timing, when mainstream carmakers were unprepared, to seize their share of the BEV market vi... Read more

28 Mar 2022

Industry

Russia-Ukraine Crisis to Push Production Costs in Thai Industrial Sector Higher by at least THB80 Billion (Current Issue No.3315)

The Thai industrial sector, which is heavily dependent on raw material imports, is set to experience higher production costs as global raw material prices are projected to stay at elevated levels during most of the remainder of 2022 if the Russia-Ukraine war is prolonged and sanctions against Russ... Read more

24 Mar 2022

Trading

Impact of Key Trade Partners’ Climate Change Measures on Thai Exports (Current Issue No.3314)

China, the US and European Union (EU), which are Thailand’s key trade partners, have announced their net-zero commitments while also implementing various environmental measures to achieve these targets, as follows:... Read more

21 Mar 2022

Services

Service indicators show signs of a slowdown in early 2022, posing a challenge to food delivery businesses (Current Issue No.3313)

Food delivery operators will tend to benefit from consumer behaviors during this period of high COVID-19 infections, wherein many businesses are still using a hybrid work model. At the same time, platform operators and restaurants continue to launch marketing campaigns and offer promotions to boost ... Read more

17 Mar 2022

Industry

Domestic F&B Spending, 2022: Growing 1.9-2.7% in line with Their Price Increases (Current Issue No.3312)

KResearch expects that food and beverage (F&B) spending in the country during 2022 will reach THB2.57-2.59 trillion, an increase of 1.9-2.7 percent, against the 2.5 percent growth reported for 2021. The increase will be supported by a 3.1 percent rise in their prices in line with elevated processing... Read more

15 Mar 2022

Agriculture

Russia-Ukraine conflict drives up global wheat prices, and in turn food costs in Thailand (Current Issue No.3310)

The ongoing conflict between Russia and Ukraine, which are the world’s leading wheat exporting nations, has driven up global wheat prices to a record high that we have never seen in recent years. ... Read more

1 Mar 2022

Services

B2C e-commerce (for products only) set to expand 13.5 percent in 2022, taking market share from on-premise purchases, especially of food and personal care products (Current Issue No.3309)

KResearch views that inflation, rising living costs, uncertainty surrounding COVID-19, and impacts from the potentially prolonged unrest in Ukraine will continue to affect the economy and consumers’ purchasing power. B2C e-commerce (for products only) may grow by around 13.5 percent or approximately... Read more

28 Feb 2022

Services

B2C Cold-Chain Logistics Business, 2022: Growing 15-20% amid Increased Costs and Competition (Current Issue No.3308)

We at, KResearch, expect that turnover in the cold-chain logistics business that penetrates the B2C segment will reach approximately THB2.9-3.0 billion in 2022, an increase of 15-20 percent (YoY), down from the 40-45 percent (YoY) growth projected for 2021. The decline is due partly to the high base... Read more

23 Feb 2022

Agriculture

Prices of Thai Oil Palm May Fall to THB4.5-6.5/Kg in 2Q22 in line with Seasonal Factors and Biodiesel Formula Adjustments (Current Issue No.3306)

KResearch is of the view that prices of Thai oil palm will stay at an elevated level of THB7.5-9.5/kg during 1Q22 in line with high global crude palm oil and energy prices. Meanwhile, an adjustment to the mixture of biodiesel to B5,... Read more

31 Jan 2022

Industry

Pharmaceutical Industry, 2022: Growing 3-5% Despite Improved COVID-19 Situation (Current Issue No.3304)

KResearch is of the view that despite improving signs seen in the COVID-19 situation, which may cause demand for related medicines to decline from the preceding year, existing local patients and some segments of international patients, who have common diseases, are expected to gradually resume medic... Read more

13 Jan 2022

Agriculture

Agricultural machinery 2022 to maintain growth with expected market value of THB 84.6-87.9 billion, bolstered by ample demand (Current Issue No.3301)

KResearch views that Thailand’s agricultural machinery market will continue to see expansion, with market value of THB 84.6-87.9 billion, or growth of 1.6-5.6 percent (YoY), mainly supported by ample demand. However, this growth may occur at a slower pace, due to easing pent-up demand and slower dem... Read more