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Industry Outlook Analysis

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

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

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

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

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

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

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

30 Dec 2021

Real Estate and Construction

Housing market in 2022 will be rife with challenges; despite increased supporting factors, market fundamentals remain highly fragile (Current Issue No.3296)

The year 2022 will remain another challenging year for the housing market. However, the market will be supported by measures for reduction of property ownership transfer and mortgage registration fees to 0.01 percent for residential units with price of up to THB 3 million – which will be extended to... Read more

30 Dec 2021

Industry

Thailand’s BEV measures may boost sales to 25,000 units in 2025, though lack of electric vehicle charging points still presents major obstacle to greater adoption (Current Issue No.3297)

The government will soon announce measures to boost domestic demand for battery electric vehicles (BEVs), with the aim of maintaining their prices at a level closer to those of petrol-driven cars. KResearch views that car manufacturers who would benefit from the initiatives may be limited to those e... Read more

23 Dec 2021

Industry

Metaverse: Applications in the manufacturing industry to increase supply chain efficiency (Current Issue No.3294)

In recent times, the concept of the ‘metaverse’ has been attracting more attention worldwide. Operators planning to utilize the metaverse in their businesses are primarily focused on seeking new forms of business opportunities in the consumer market, whether it is a new retail sales channel that cre... Read more

13 Dec 2021

Agriculture

Rice Prices, 2022: Rising to THB8,900-9,400/Ton Amid Challenges...Government Policy is Still Crucial to Maintain Rice Prices (Current Issue No.3290)

KResearch is of the view that Thai rice prices will likely increase slightly during 2022 after having bottomed out in 2021. The marginal rise is due to the low base of 2021. Rice prices are projected to increase to a range of THB8,900-9,400/ton in 2022, representing a contraction of 1.6 percent to a... Read more

8 Dec 2021

Services

Food Delivery, 2022: Growing Steadily as Application Service Providers Penetrate Upcountry to Expand New Customer Base (Current Issue No.3289)

The COVID-19 pandemic, lockdown restrictions on the restaurant business, work-from-home policies, the fact that consumers have become more familiar with food delivery applications, and the government’s co-payment program will likely cause turnover in the food delivery business (a new base, which inc... Read more

30 Nov 2021

Industry

Thai Pet Food Exports Projected to Grow 20% in 2022, but Accelerated Branding to Tap Premium Segment Needed (Current Issue No.3287)

KResearch is of the view that Thai pet food exports will continue to enjoy bright prospects ahead. For 2022, we expect that the value of Thai pet food shipments will reach roughly USD2.4 billion, an increase of 20 percent, which would be a slight decline from the 23 percent growth projected for 2021... Read more

18 Nov 2021

Industry

Thai motorcycle market remains stagnant with projected growth of merely 1% in 2021... electric motorcycles see expansion with entry of new operators though they may face difficulties (Current Issue No.3286)

This year, Thailand’s motorcycle market has been seriously affected by the COVID-19 outbreak, diminishing consumers’ purchasing power. As the principal buyers, grassroots customers have been particularly affected. For the entirety of 2021, KResearch projects that total motorcycle sales may be aroun... Read more

8 Nov 2021

Tourism

Domestic Travel Set to Recover in 2022 if There is No Severe Resurgence of COVID-19 (Current Issue No.3284)

Thais have been found to begin taking more domestic trips after the government relaxed lockdown restrictions, lifted a ban on inter-provincial travel, bolstered the vaccination rate, and introduced measures, aimed at stimulating domestic travel. A survey on domestic travel demand shows that more tha... Read more

3 Nov 2021

Services

Full-Service Restaurant Business Set to Resume Growth of 26.5% in 2022, Thanks to Relaxation of Lockdown Measures (Current Issue No.3283

During 4Q21, the full-service restaurant business is being supported by two factors as part of the government’s relaxation of various lockdown restrictions. They are the lifting of curfew in pilot tourist destinations under its reopening plan, and permission for restaurants to serve alcoholic bevera... Read more

29 Oct 2021

Agriculture

2021 floods affect in-season rice...crop damage estimated at approximately THB6.3-8.4 billion (Current Issue No.3281)

KResearch has preliminarily assessed that the damage to the rice crop from flooding in September and October 2021 may amount to around THB 6.3-8.4 billion. Due to the effects of recent storms, many provinces in the northeastern, northern and central regions of Thailand are experiencing ongoing flood... Read more

26 Oct 2021

Trading

Thai Exports, September 2021: Surged 17.1% as COVID-19 Situations in Many Countries Began to Improve (Current Issue No.3955)

In September 2021, Thai exports soared 17.1 percent, against the 8.9 percent reported for August 2021, supported by several factors. These include improving COVID-19 situations and economic conditions in many countries, thanks to their higher inoculation rates, plus the depreciating Baht. Additional... Read more

15 Oct 2021

Services

Retail sales in 4Q21 signals post-lockdown recovery amid cautious spending (Current Issue No.3278)

KResearch views that the COVID-19 situation and vaccine accessibility have improved to the point that the government has eased many lockdown measures, allowing more economic activities to resume operations in the final quarter of 2021. Since many businesses are expected to launch campaigns to boost ... Read more

15 Oct 2021

Tourism

Nov 1 Reopening Set to Revive Thai Tourism with Substantial Growth Seen in 2022 (Current Issue No.3279)

It is now certain that Thailand will reopen to international tourists with no quarantine requirements from November 1, 2021. Under the plan, fully vaccinated foreign visitors will need to show that they are COVID-free at their time of travel with a test undertaken before they leave their home countr... Read more

8 Oct 2021

Services

Private hospitals 2021 likely to see revenue recover from low base though cost management and intense competition continue to affect business (Current Issue No.3277)

KResearch projects that the revenue of private hospitals in 2021 will grow 11.8 percent YoY, as opposed to 2020 which saw a contraction of 12.5 percent. Such recovery can partly be attributed to the low base of the previous year while revenue remains below pre-COVID-19 levels. Most of private hospit... Read more

7 Oct 2021

Industry

Covid-19 Temporarily Bolsters Thai Preowned Car Prices ... Eyeing Online Used Car Platform Startups (Current Issue No.3276)

Although the COVID-19 pandemic has affected new car production and sales, it has created two new developments in the second-hand car markets, both at home and abroad: 1) rising prices of used cars, and 2) the use of online channels for buying and selling preowned vehicles. However, prices of used ca... Read more

6 Oct 2021

Industry

Thailand’s smart factory solutions market… set to grow over 10 percent in 2021, amid gradual economic recovery (Current Issue No.3275)

Amid the ongoing COVID-19 crisis, smart factory solutions (SFS) service has tended to grow at an accelerated pace, as opposed to the gradual growth seen during the pre-pandemic period. This has been boosted by demand from large companies forced to make adjustments to lessen their dependence on manua... Read more

28 Sep 2021

Agriculture

Kratom Plant: Challenges Lie in Uncertainty of Its Initial Demand (Current Issue No.3272)

Recently, Kratom or Mitragyna speciosa was removed from Thailand’s narcotics list. We at KResearch are of the view that successful commercialization of related Kratom products during an initial phase will not be smooth sailing, and will rest primarily with demand amid limited supply. ... Read more

27 Sep 2021

Trading

COVID-19 Pandemic Dented Thailand’s August Export Growth to 8.93%, but 2021 Shipments Set to Grow at 12.4% (Business Brief No.3952)

In August 2021, the COVID-19 situation in many Asian countries became much worse due to the highly contagious Delta variant. As a result, their economic activity and manufacturing sectors were adversely affected, thus pressuring their export performances. Thailand’s exports were not spared by that i... Read more

14 Sep 2021

Services

B2C e-commerce (for products only) set to surge over 30% in 2021; online merchants face challenges from diminished purchasing power and tougher competition (Current Issue No.3268)

KResearch projects that the 2021 B2C e-commerce (for products only) will likely expand 30 percent YoY, with an estimated value of THB 300 billion. Its growth is mainly attributed to the COVID-19 pandemic which has altered consumer behaviors including the number of buyers and product diversity. At th... Read more

13 Sep 2021

Industry

Mooncake Market, 2021: Turnover Set to Shrink 5.7% as Consumer Purchasing Power Remains Weak (Current Issue No.3267)

The Mid-Autumn Festival, which falls on September 21, 2021, presents another challenging year for the mooncake business due to the protracted COVID-19 pandemic, which is much worse than the previous year. As a result, consumer purchasing power remains weak, and this may affect the decision to purcha... Read more

8 Sep 2021

Services

Impact of E-Service Tax on Users of Foreign Digital Service Platforms (Current Issue No.3266)

As Thailand is transitioning towards a digital economy amid the increasing role of technologies in the business sector and our everyday life, including trading, entering into business agreements, and conducting financial transactions via digital platforms at home and abroad, plus the fact that such ... Read more

6 Sep 2021

Real Estate and Construction

Residential Property Market Projected to be Highly Fragile during the Remainder of 2021 (Current Issue No.3262)

Most residential property developers have postponed the opening of their new projects since the beginning of 2021 due to unfavorable market conditions and the high level of unsold residential units. They have also adjusted their business strategies in line with market conditions. According to the Ag... Read more

3 Sep 2021

Agriculture

Meat expenditure in 2021 to rise 2.0% due to higher price and cost (Current Issue No.3261)

KResearch assesses that meat prices will remain high over the remainder of 2021, stemming from cost of disease prevention and control in humans and animals, increased cost of animal feeds, import charges that tend to remain high, and the Baht’s volatility. Given the prolonged COVID-19 outbreak and t... Read more

1 Sep 2021

Services

Home Health Services: Option during COVID-19…2021 Turnover Projected to Reach at Least THB2.2 Billion (Current Issue No.3260)

ศูนย์วิจัยกสิกรไทย ประเมินว่า ศูนย์วิจัยกสิกรไทย ประเมินว่า ในปี 2564 มูลค่าการใช้จ่ายสำหรับบริการทางการแพทย์ที่บ้านของไทย จะอยู่ที่ 2,200 – 2,300 ล้านบาท เติบโตได้เล็กน้อยที่ 2.4% (YoY) แม้ว่าตลาดจะเติบโตได้จากการเพิ่มขึ้นของผู้ให้บริการ ประเภทการบริการที่หลากหลายขึ้น รวมทั้งสถานการณ์โควิด-19 ที่ทำ... Read more

25 Aug 2021

Agriculture

Thai mangosteen exports to grow 14.6-18.8 percent in 2021...despite short-term supply disruption (Current Issue No.3259)

KResearch projects that, despite short-term supply disruption stemming from the COVID-19 outbreaks, Thai mangosteen exports could be valued at an estimated USD 540-560 million, or growth of 14.6-18.8 percent YoY, mainly from export prices. While Indonesia may have taken a greater share of the Chines... Read more

23 Aug 2021

Industry

Increased Investment Risk Seen in Thai Tire Industry after US Imposed AD Duties, but 2021 Tire Exports to the US Projected to Grow over 2.6% (Current Issue No.3258)

Following more than a year of an anti-dumping investigation into tires imported from Thailand, the US has finally ruled that passenger vehicle and light truck tires imported from Thailand are subject to anti-dumping (AD) duties. As a result, prices of such Thai tires in the US have risen, although t... Read more

23 Aug 2021

Trading

Export growth reaches 11-year high in July 2021… Full-year growth projected at 12.4 percent (Business Brief No.3947)

In July 2021, Thai exports maintained strong growth at 20.27 percent YoY, the highest level in 11 years and higher than the market forecast of 19.7 percent YoY. Export growth during the first seven months of 2021 was equal to 16.2 percent, ... Read more

19 Aug 2021

Services

COVID-19 and outbreak control measures spur growth of food delivery market at 18.4 – 24.4 percent in 2021 (Current Issue No.3256)

Amid heightened COVID-19 control measures, food delivery service has become the primary income channel for restaurants. Marketing via online food delivery platforms, including promotional discounts and delivery fee waivers for restaurateurs, has also helped to attract new customers and increase orde... Read more

18 Aug 2021

Tourism

New Wave of COVID-19 to Deal Severe Blow to Global Tourism, including Thailand’s, during the Remainder of 2021 (Current Issue No.3255)

International tourism is experiencing a new wave of challenges again as many countries have been hard hit by the highly contagious Delta coronavirus (COVID-19) variant, with a rising number of infections. As a result, many countries have tightened border controls and issued an advisory warning again... Read more

9 Aug 2021

Industry

Turnover of Alternative Proteins Derived from Food Innovations Set to Reach THB4.5 Billion in 2021 amid Numerous Challenges (Current Issue No.3254)

Alternative proteins, which are among food techs, have emerged as one of the top consumer trends and thrived over the past few years. KResearch is of the view that the alternative protein market in Thailand is set to grow in the future as such products are now available through numerous channels whi... Read more

6 Aug 2021

Agriculture

Potential Crops that should be Promoted for the Processing of Plant-Based Alternative Protein Products to Ensure Sustainable Crop Supplies (Current Issue No.3253)

KResearch is of the view that Thailand has numerous crops that can be processed into plant-based protein foods of the future, namely green beans, sunflower sprouts, black sesame seeds, organic “Hom Mali” rice and straw mushrooms, based on the required analysis results. These include: 1) Such crops m... Read more

6 Aug 2021

Services

Elderly assistive devices market to reach THB 8 billion in 2021… consistent with Thailand’s trend towards an aged society (Current Issue No.3252)

KResearch projects that the value of medical equipment and assistive devices for the elderly in Thailand will amount to a range of THB8-9 billion in 2021, and register an compound annual growth rate (CAGR) of 7.8 percent over the next five years as Thailand is approaching an aged society status. The... Read more

5 Aug 2021

Industry

Thai Polylactic Acid Exports Set to Grow at least 38% in 2021, but May Pressured by Tighter Supply in 2022 (Current Issue No.3251)

Amid the current global green trends, Thailand’s polylactic acid (PLA) exports have gradually increased at a faster rate than growth in global PLA demand over the years. The rise is primarily attributable to the fact that Thai PLA producers have been able to bolster their annual manufacturing capaci... Read more

29 Jul 2021

Industry

Thai auto market could see sales drop to 720,000 due to prolonged COVID-19 outbreak, while exports may offer little support to production (Current Issue No.3249)

With the most recent wave of the COVID-19 pandemic, the Delta variant has established itself as a major global threat, having spurred a surge in the number of cases across many countries, including Thailand. It may also impact economies worldwide over the long term if the outbreak is not successfull... Read more

27 Jul 2021

Services

Private hospitals reliant on medical tourism to encounter difficulty in 2021-2022 amid ongoing COVID-19 outbreak (Current Issue No.3248)

Private hospitals are one of the businesses that have been severely affected by the COVID-19 outbreaks, especially private hospitals that are normally reliant on revenue from foreign patients through medical tourism. Like regular international travelers, medical tourists are presently unable to trav... Read more

23 Jul 2021

Trading

Global demand boosts exports across Asia in 1H21, with Thai exports boasting strong growth of 15.53 percent YoY; yet recovery remains below that of regional rivals (Business Brief No.3940)

In June 2021, Thai exports hit its highest level in 11 years with robust growth of 43.82 percent YoY, above market expectations of 38.1-percent growth. While Thai exports in 1H21 grew 15.53 percent YoY, the level was not high in comparison to the export growth of regional rivals, which generally gre... Read more

15 Jul 2021

Creating added value from farm waste… conducive to zero waste and BCG economy (Current Issue No.3244)

KResearch is of the opinion that the bio, circular and green (BCG) model is suitable for steering industries towards sustainable development, with the food and agriculture sector as a major driver. Biological diversity and the current COVID-19 situation could be deemed major turning points in the we... Read more

14 Jul 2021

Services

Growth potential for health tech in Thailand amid rising demand for health services (Current Issue No.3243)

In KResearch’s view, spending on health tech in Thailand remains modest, at around THB 300-400 million in 2021. However, the COVID-19 pandemic has quickly elevated the role of technology in health services as it helps to reduce risk and provides greater convenience to patients. Moreover, Thailand’s ... Read more

9 Jul 2021

Industry

Turnover in 2021 Snack Business Projected to Shrink 4.0% amid Eroding Consumer Purchasing Power (Current Issue No.3242)

KResearch is of the view that the prolonged COVID-19 pandemic, which recently prompted the government to reimpose lockdowns and curfews in high-risk zones, has caused consumers to embrace frugality or thrift. As snacks are generally perceived as non-essential products, their consumption rate is set ... Read more

8 Jul 2021

Agriculture

Outlook for Thai agriculture in 2H21 indicates slow growth compared to the first half of the year (Current Issue No.3241)

KResearch has assessed that the overall Thai agricultural sector in 2H21 will likely grow at a slower rate compared to 1H21. This slowdown can be attributed to the prices of most agricultural products that are expected to decline due to the accelerated growth of farm output by 1.1-3.0 percent YoY. ... Read more

6 Jul 2021

Industry

EV contract manufacturing – new business model for the EV industry amid challenge of building a strong customer base (Current Issue No.3239)

The technological transition to electric vehicles (EVs) on a global scale has led to the emergence of a new business model that differs from the model currently adopted by mainstream automakers. Such model comes in the form of EV contract manufacturing (EVCM) on an open EV platform which allows new ... Read more

5 Jul 2021

Real Estate and Construction

2021 Construction Investment Projected to Shrink Roughly 3.8% due to a One-Month Ban on Construction Activity (Current Issue No.3238)

The protracted COVID-19 pandemic and rising number of daily infections has prompted the Thai government to impose a partial lockdown. This measure includes a ban on construction activity at large projects for at least one month, effective June 28 – July 28, 2021, ... Read more

5 Jul 2021

Services

Restaurant business 2021 likely to suffer THB 55 - 70 billion in lost revenue compared to previous year amid rampant COVID-19 outbreak (Current Issue No.3237)

With the recent wave of COVID-19 in Thailand, the number of daily cases has surged in many areas, particularly the Bangkok Metropolitan Region (BMR), which is categorized as a zone of maximum and strict COVID-19 control. This development has prompted the government to raise COVID-19 control and prev... Read more

1 Jul 2021

Tourism

Plan to reopen the country to international tourists: key conditions rest on bringing COVID-19 outbreak under control nationwide (Current Issue No.3235)

On June 29, 2021, the Ratchakitcha website (Government Gazette) published “Thailand’s Tourism Reopening Scheme”, which comes into effect on July 1, 2021. Cooperation among the related parties allowed the second phase of the reopening plan to move forward according to plan on July 1, 2021. Provinces ... Read more

25 Jun 2021

Industry

Global Economic Recovery Set to Support 2021 Thai PCB Export Growth to over 20% (Current Issue No.3232)

The world’s economic recovery from the COVID-19 pandemic has led KReseach to assess that Thai printed circuit board shipments will grow roughly 20.1-24.1 percent in 2021, or equivalent to USD1,573-1,626 million. The increase is expected to be bolstered by strong demand for products in the ICT catego... Read more

25 Jun 2021

Agriculture

Export value for Thai durian hits record high in May 2021; new record expected for full-year 2021 with accelerated growth of 35 - 40 percent (Current Issue No.3233)

Durian, the aptly-named ‘King of Fruits’, generates the highest revenue for Thailand out of all its fruit exports. Since 2014, the export value for durian has surpassed all other fruits, and just recently reached a monthly record high of USD 934.9 million in May 2021, with growth of 95.3 percent YoY... Read more

24 Jun 2021

Industry

EU Carbon Border Adjustment Mechanism (CBA) Presents Another Challenge for Thai Exports (Current Issue No.3231)

In 2023, it is expected that the European Union (EU) will use a Carbon Border Adjustment (CBA) mechanism for goods and services that are imported from third non-EU countries as part of the European Green Deal – an ambitious package of measures aimed at preserving Europe’s natural environment. During... Read more

24 Jun 2021

Trading

Thai exports in May 2021 reach an 11-year high at 41.59%; full-year 2021 growth forecast at 9.0% (Business Brief No.3935)

Thai exports in May 2021 reached an 11-year high with growth of 41.59 percent YoY. Excluding oil-related products, gold, weaponry and military supplies, May’s overall exports grew 45.87 percent YoY. For the first five months of 2021, exports rose 10.78 percent YoY. However, export growth during this... Read more

21 Jun 2021

Services

Retail Business, 2021: Contracting 2.0%…Eyeing Vaccine Rollout to Help Restore Consumer Spending (Current Issue No.3230)

KResearch maintains a cautious view towards the retail business during the remainder of 2021. For 2020, we expect that retail sales will contract 2.0 percent YoY. However, close attention must be paid to vaccine rollout at home over the coming few months (June-September), and whether there is a pote... Read more

8 Jun 2021

Services

Online learning: Expenses pose challenge to low-income parents (Current Issue No.3229)

The 2021 school year marks yet another year that sees students taking their classes online. Some educational institutions have organized online sessions ahead of the new school term, which is presently set to begin on June 14, 2021. KResearch conducted a survey in the Bangkok Metropolitan Region to ... Read more

1 Jun 2021

Real Estate and Construction

Home Purchases in Bangkok Metropolitan Area Projected to Contract for Third Consecutive Year during 2021 (Current Issue No.3228)

It is expected that home purchases in the Bangkok Metropolitan area during 2H21 will improve over a sharp plunge reported for 1H21 if the COVID-19 pandemic can be contained by July, and if vaccination rollouts are on track, and there are new economic stimulus measures introduced by the government. H... Read more

28 May 2021

Industry

Auto exports may reach 890,000-950,000 units in 2021; entry of Chinese carmakers set to increase export opportunities over the next three years (Current Issue No.3227)

KResearch has assessed that Thai auto exports in 2021 should improve from the previous year, thanks in large part to the economic recovery of major trading partners in Oceania and Asia. At the same time, an increasing number of Japanese car manufacturers are using Thailand as a production base for e... Read more

24 May 2021

Agriculture

AgriTech set to transform Thai agricultural sector; guidelines should be adopted for use of technology in small-scale operations (Current Issue No.3223)

While the use of agricultural technology or AgriTech in Thailand is still very much at its initial stage, KBank believes AgriTech will play a more prominent role in the country over the next 3 to 5 years, thanks to increasingly affordable technology and broader knowledge of its usage that becomes mo... Read more

8 May 2021

Agriculture

Agricultural Product Prices Likely be Pressured by Supply Glut and Sluggish Demand from COVID-19 during remainder of 2021 (Current Issue No.3220)

KResearch assesses that prices of most Thai agricultural products, including rice, rubber, cassava, oil palm and sugarcane, will decline during the remainder of 2021 due to the double shock from both a supply glut resulting from favorable climate conditions for crop cultivation and weakening domesti... Read more

7 May 2021

Industry

Post-COVID Supply Chain Realignment and Change in Global Investment Flows: Thailand Projected to Benefit USD1.1-1.4 Billion from Increasing FDI in Existing Industries (Current Issue No.3218)

A new paradigm in global investment flows is being seen as the COVID-19 pandemic has triggered massive supply chain adjustments. Realizing the fragility of global supply chains and the intensifying trade and technology war between the US and China, multi-national companies have begun to diversify ri... Read more

30 Apr 2021

Services

New COVID-19 outbreak stifles restaurants’ recovery in 2021; slump to continue from 2020, with projected revenue merely THB 382 – 394 billion (Current Issue No.3216)

Restaurants face ongoing challenges after the emergence of the third COVID-19 wave. While as of this writing the government has yet to announce a lockdown or ban dining-in at restaurants, the restrictions on restaurants’ business hours and consumer anxiety towards on-premise services have even more ... Read more

29 Apr 2021

Industry

Chip shortage 2021: Thai vehicle production falls short by 40,000 units, while car manufacturers implement supply-side structural reform for automotive chips to support long-term demand (Current Issue No.3214)

Since late 2020, the global automotive industry has been experiencing a microprocessor chip shortage. The principal reason for this crisis is the fragile structure of the automotive chip manufacturing industry. Demand and supply volatility for these chips has been triggered by multiple factors, incl... Read more

29 Apr 2021

Industry

2021 Domestic Car Sales to Shrink 1.5% due to COVID-19, but Higher Exports to Boost Car Production to at least 1.8 Million Units (Current Issue No.3215)

Although the government did not announce lockdown restrictions to cope with the latest wave of COVID-19, the highest number of daily infections since the start of the pandemic here has not only triggered concern among Thai consumers about their future income, but also affected overall domestic consu... Read more

26 Apr 2021

Services

Third COVID-19 wave inhibits growth in domestic spending on food and beverages, likely to rise 0.5% in 2021 if crisis is resolved within 3 months (Current Issue No.3212)

The impact of the third COVID-19 wave is set to hinder consumer spending on food and beverages for 2021. As a result, businesses in this sector will continue to face difficulties in raising sales throughout the year. KResearch assessed that under a base-case scenario which sees the outbreak containe... Read more

23 Apr 2021

Agriculture

Hemp: Cash crop of the future under multiple conditions (Current Issue No.3211)

Hemp has the potential to become Thailand’s next cash crop with perceived utilization in downstream industries for varied purposes with high added-value. Meanwhile, the initial supply of hemp - once restrictions have been lifted - will likely hit the market in 4Q21, and is projected to see steady in... Read more

22 Apr 2021

Tourism

Two Waves of COVID-19 within Three Months to Derail Recovery of Thailand’s 2021 Inbound Tourism (Current Issue No.3210)

The latest wave of the COVID-19 pandemic may take longer to ease as compared to the two previous waves because the number of daily cases is substantially higher and most people have been infected by the fast-spreading variant. This is likely to delay the government’s efforts in re-opening the countr... Read more

12 Apr 2021

Tourism

Receipts for Domestic Travel Projected to Fall by more than THB130 Billion as Third Wave of COVID-19 Hurts 2Q21 Domestic Travel (Current Issue No.3209)

The third wave of COVID in 2Q21 presents bad news for travel-related businesses that had begun to bounce back following the latest resurgence of COVID-19 towards the end of last year. According to the Ministry of Tourism and Sports, the number of Thais travelling in the country during February 2021 ... Read more

5 Apr 2021

Industry

Value of Enterprise HDD Exports Set to Grow 2-5% in 2021, Driven by Cloud Computing Trends (Current Issue No.3208)

Thai HDD exports overall are projected to record steady contraction in terms of volume and value during 2021, pressured by disappointing consumer HDD shipments, resulting from a transition towards the SSD technology. It is projected that the volume and value of consumer HDD shipments will shrink wit... Read more

2 Apr 2021

Industry

National EV Strategic Plan: A Stepping Stone for the Thai Automotive Industry, but Markets and Integrated Supply Chain are Prerequisites (Current Issue No.3206)

On March 24, 2021, the National Electric Vehicle Policy Committee set a new target for Thailand’s electric vehicle production, with the objective of promoting the country to become one of the world’s important production bases for zero-emission vehicles (ZEVs). Under this challenging target, 100 per... Read more

31 Mar 2021

Industry

Thai Lithium-ion Battery Industry Set to Thrive in line with xEVs, Though Thailand Needs to Upgrade its Position from being only an Assembly Base (Current Issue No.3203)

The Thai lithium-ion battery industry is set to post steady growth ahead, thanks to increased investment from mainstream auto makers to accommodate growth in the production of their electric vehicles (xEVs) in Thailand and from entrepreneurs in the Thai energy industry, who have seen business opport... Read more

26 Mar 2021

Tourism

Domestic tourism to improve during 2021 Songkran festival, provided that the outbreak is kept under control (Current Issue No.3202)

KResearch views that the overall trend for domestic travel will see improvement during the 2021 Songkran festival. However, the festivities will differ markedly from those that took place in the era before COVID-19, as Thailand continues to be on high alert for signs of local transmission. For this ... Read more

25 Mar 2021

Real Estate and Construction

Sales of construction materials stores to grow by 0.2%-1.9% in 2021, boosted by public construction spending (Current Issue No.3201)

KResearch projects that sales of construction materials stores may improve slightly from the previous year, by approximately 0.2-1.9 percent in 2021, or an estimated market value of THB 803-817 billion. These figures are predominantly supported by the Thai government’s continuous investment in const... Read more

25 Mar 2021

Trading

February Exports, Excluding Gold, Grew 4.0%...Growth Not in Sight for 1Q21 Shipments (Business Brief No.3918)

The global economy is projected to recover at a faster rate than prior estimate during 2021. Due to the progress on COVID-19 vaccine rollouts and growth seen in the US economy, buoyed by its massive economic stimulus package, the global economy is set to rebound to its pre-pandemic levels in 2021, a... Read more

19 Mar 2021

Trading

Global market shows recovery signs; bright prospects for Thai exports in 2021 with annualized growth of 4.5% (Current Issue No.3198)

Thailand’s latest export figure in January 2021 grew at a mere 0.3 percent YoY. Excluding gold, exports rose by 6.3 percent YoY, which reflected the recovery of Thailand’s trading partners, thanks to the commencement of COVID-19 vaccinations which have started to rejuvenate global economic activity,... Read more

16 Mar 2021

Industry

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

15 Mar 2021

Agriculture

Rice exports in 2021 to remain stable at 5.8-6.0 million tons amid ongoing challenges; jasmine rice best performer in export markets (Current Issue No.3195)

KResearch views that Thailand’s rice exports in 2021 will likely remain steady at around 5.8-6.0 million tons, or an estimated growth rate of 1.3-4.8 percent YoY. This rate is higher than the total growth of demand for rice in the global market, which stands at 1.7 percent. Jasmine rice exports to t... Read more

12 Mar 2021

Industry

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

Industry

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

25 Feb 2021

Agriculture

Mild drought expected in 2021 though off-season rice may see decline in prices (Current Issue No.3192)

This year’s dry season (January – April 2021) is expected to be mild and will likely be less severe than 2020, based on the slight drop in dam levels by 7.3 percent YoY. So far, this decrease has been limited to reservoirs in western Thailand, whereas other regions are seeing higher water levels tha... Read more

23 Feb 2021

Trading

January Thai Exports, Excluding Gold, Continued to Grow in line with the Global Economy (Business Brief No.3913)

Thailand’s outward trade posted steady growth over-month in January 2021 as the global economy began to recover. Excluding gold, Thai exports increased 6.3 percent, suggesting stronger demand for Thai products abroad, in particular automotive accessories, which surged 18.8 percent YoY, against the 0... Read more

18 Feb 2021

Services

Wider Generation Gap Prompts Businesses to Place More Emphasis on Specific Needs of Consumers (Current Issue No.3190)

The economic recovery of Thailand’s trading partners should see further improvement from the previous year as they continue to adjust to the COVID-19 pandemic. Many countries still rely on importing goods from Thailand, especially IT products, which have steadily displayed signs of accelerated growt... Read more