Unlocking opportunities: Thailand's business landscape adapts to ageing society
As Thailand steadily transforms into an ageing society, the Commerce Ministry has spotted scores of opportunities for businesses targeting this demographic.
Anticipating a full-fledged elderly society this year, the ministry pointed out the significant purchasing power, financial influence and familial sway wielded by this age group.
Auramon Supthaweethum, director-general of the Commerce Ministry's Department of Business Development, said that as of 2023, the elderly population in Thailand (aged 60 and above), constituted one-fifth of the total population or around 13 million individuals. With global trends reflecting an ageing population, the United Nations predicts that by 2050, 16% of the world’s population will be aged over 65.
This demographic shift presents a lucrative opportunity for Thai businesses to tailor products and services specifically for the elderly. Recognising fundamental needs such as food, housing, healthcare, financial stability and mental well-being, the department has identified the following key areas of interest:
• Basic sustenance needs
Targeting food, housing, soft furnishings and medicines essential for a healthy life.
• Stability and security needs
Focusing on financial security, including avenues for fund accumulation and emergency preparedness.
• Physical and mental health needs
Addressing access to necessary healthcare systems and activities promoting physical and mental strength.
Meeting these needs requires specific design aspects, promoting businesses to adapt in various sectors such as food production, real estate, interior design, healthcare and more.
Fundamental needs
Over the past three years, there has been a notable surge in establishments catering to the fundamental factors supporting the lives of the elderly. The numbers grew from 10,676 establishments with a total capital of 38.43 billion baht in 2021 to 16,913 establishments with a capital of 53.28 billion baht in 2023. Business performance in this sector exhibited consistent growth, with total revenue reaching 3.09 trillion baht with a profit of 298.54 billion baht in 2022.
As of December 31, 2023, a total of 140,923 businesses focused on elderly life support accounted for 16.13% of all active businesses in Thailand.
Of them, 55,668 or 39.50% are located in Bangkok.
Stability and security
Apart from covering basic needs, ensuring financial safety and stability for the elderly is pivotal. Businesses offering investment consultations, financial management advice, life insurance and security services cater to these needs.
Over the past three years, establishments in this sector rose from 241 with a capital of 746 million baht in 2021 to 309 establishments with a total capital of 6.63 billion baht.
As of December 31, 2023, there were 4,142 businesses dedicated to stability and security for the elderly, with a total capital of 253.99 billion baht, making up 1.17% of all businesses in Thailand. Most of these businesses were in Bangkok.
Physical and mental health focus
Health, both physical and mental, is paramount for all age groups, though particularly for the elderly.
Businesses offering exercise guidance, sports activities, tourism, spas, entertainment activities, hotels, resorts or rural cultural experiences suit this demographic.
Establishments in this category rose from 2,318 in 2021 to 4,588 in 2023, with most of them based in the capital.
These businesses, according to the Department of Business Development, are just a fraction of the opportunities linked to the needs of the elderly.
As society shifts towards an ageing demographic, businesses must adapt themselves to meet diverse needs, ensuring lasting connections and continuous growth.
Government policies supporting the elderly will play a crucial role in business expansion, contributing to the global challenge of an ageing society.
