Why Brands Should Consider the Thailand market in 2025

Written by: Sutasinee Anantanawat

Thailand presents a compelling opportunity for brands looking to grow their export businesses in Southeast Asia. Thailand is an attractive market for international businesses, offering growth potential driven by a dynamic and evolving consumer landscape. With a mix of traditional and modern influences, the country presents unique opportunities across various sectors. However, navigating the market successfully requires an understanding of its distinctive challenges and competitive environment.

Why should brands consider Thailand?

Purchasing power. Thailand has a large and diverse market with considerable purchasing power, driven by both its domestic population and a growing number of expats living there. This demographic shift is contributing to increased demand for a wide range of international food and beverage products creating new business opportunities.

Innovative shopping experiences. In addition to its strong market potential, Thailand is making significant strides in innovation and technology. The country has integrated AI into the shopping experience, both in-store and through mobile apps, offering consumers a more personalised and efficient way to shop. This blend of technological advancement and consumer convenience further strengthens Thailand’s appeal as an emerging market for brands looking to capitalise on innovation and meet the demands of tech-savvy consumers.

Opportunities and Trends in Thailand

Health-conscious consumers. Healthy eating trends, such as a growing preference for natural, high-protein and plant-based options, continue to dominate the Thai market. This shift is driven by two key factors: increasing work hours and commute times, which make convenience and health-conscious choices more appealing, and the influence of social media Key Opinion Leaders (KOLs), who inspire many consumers to adopt healthier lifestyles. As a result, there is a rising demand for products that align with these trends, presenting opportunities for brands that cater to the health-conscious consumer.

Growing expat community. In addition to these dietary shifts, Thailand is seeing an influx of expats, many of whom are either living the remote working lifestyle or are retiring in the country. This demographic is contributing to a higher purchasing power and increasing demand for quality products, particularly in locations like Phuket. While the cost of living in Phuket is higher than in Bangkok, the local population there is willing to spend on premium goods. Thai consumers, especially those in the middle to high-income brackets, are increasingly focused on quality, further expanding the market for overseas brands.

Imported brands are perceived as high quality. International brands, particularly from Australia and New Zealand, are especially popular in Thailand due to their reputation for food safety and quality. This trend is compounded by the vibrant retail landscape in Bangkok, where a dense concentration of shopping malls, restaurants and cafes thrive despite heavy competition. The success of these businesses can be attributed to the city's large population and the powerful role of social media, which drives consumer demand and brand loyalty in an increasingly competitive environment.

Challenges When Entering the Thai Market

Brands face two challenges when entering the Thai market:

FDA Approval. Brands must have their products registered with the Thai FDA prior to shipments legally being allowed to enter the Thai market. A brands appointed distributor manages this registration process and will request the relevant documentation from the brand for making the submission. This registration process can be completed in as few as a couple of months, but it has been known to take up to a year depending on the category of the product. Having a distributor with strong compliance capability can significantly fast track the product registration process.

Highly competitive retail space. The retail space is highly competitive, requiring significant investment in retail listings, as well as marketing and promotional efforts to attract retailers. To stand out, companies should be prepared to allocate a substantial budget for these activities and collaborate with local Key Opinion Leaders (KOLs) to enhance brand visibility and credibility. A well thought out marketing plan that blends in-store promotions with social media activity will give brands a good chance of hitting the required rates of sale to maintain and grow their on-shelf presence over time in major relevant retail channels.