Positioning Thailand as a hub for senior citizens to enjoy life post-retirement

The current global trend of social change towards an ageing society is becoming more evident. According to the United Nations' World Population 2022 report, the global population is projected to reach 8 billion, with 10% being over the age of 65. This percentage is expected to increase to 16% by 2050.

In Thailand, by 2024, the country will have fully transitioned into an ageing society. Data from the Ministry of Interior, shows that in 2023, Thailand had approximately 13 million people aged 60 and above, making up one-fifth of the total population of 66,057,967. This increase in the elderly population presents an opportunity for businesses catering to this demographic, particularly in the elderly-care sector or “nursing homes”, which are experiencing growth in Thailand.

Oramon Sapthaweetham, director-general of the Department of Business Development, said that Thailand’s elderly population was continuing to rise, evident from the widespread advertising of healthcare products and services targeting the elderly. 

This group has strong purchasing power, and with the statistics from 2024, Thailand is now a "super-aged society" with over 13.2 million people aged 60 and above, accounting for 20.36% of the population, and the number is continuously increasing.

Notably, the elderly-care business has shown steady growth. As of July 31, 2024, data from the department shows that there are 743 registered elderly-care businesses, up by more than 6% from 2023, with a total registered capital of over 4.04 billion baht, an increase of more than 2% from the previous year, and generating over 1.2 billion baht in total revenue, up by more than 12% from the previous year.

Currently, Thailand has 758 senior housing projects as of June 2023. Of these, 708 are nursing homes across 55 provinces. 

Between 2018 and 2023, the number of nursing homes grew at an average rate of 25.1%, primarily concentrated in Bangkok, its surrounding areas, and major provincial cities. 

This presents an opportunity for entrepreneurs to expand their services and related businesses in the care of the elderly.

Key factors driving the growth of the elderly-care business include:

● The increasing number of elderly people in Thailand, leading to a higher demand for elderly-care services.

● A variety of services, such as day-care centres, home care, senior residences, and health care for the elderly, which cater to different needs.

● High competition as more businesses enter the market, intensifying the competition.

● Business opportunities – despite the high competition, the market remains large with substantial growth potential.

● Higher incomes – as the average income of the population increases, so does the purchasing power for elderly-care services.

● Awareness of quality of life, with people placing greater importance on quality of life, driving the demand for the best care services for the elderly in their families.

However, a significant challenge for businesses taking care of the elderly is the shortage of skilled personnel and the high operating costs. Elderly-care businesses must meet the specific needs of an ageing society and maintain good business governance to provide international standard care. 

These businesses must serve as friends, nurses, and close caregivers, ensuring trust, comfort, and satisfaction for the elderly who use their services.

The growth of the elderly-care business in Thailand presents both opportunities and challenges for the country in building a healthcare system to support elderly individuals, both Thai and foreign, with high purchasing power who seek medical services that meet international standards. 

These services include health check-ups, anti-ageing medicine, or long-term retirement stays, aligning with the trend of healthy living and longevity.

Therefore, the “elderly-care business” or “nursing homes” are not just a “business” but also a friend, nurse, and close caregiver, fostering trust, comfort, and satisfaction among elderly clients. Understanding consumer behaviour and adapting businesses to accommodate changes is crucial.

Moreover, the integration between relevant government and private sectors in preparing for the ageing society is an urgent priority, aiming to position Thailand as a medical hub for elderly-care businesses at both the regional and global levels, attracting elderly individuals who wish to enjoy a happy retirement in Thailand.