Thailand eyes health industry as its next economic powerhouse

 

Thailand is ramping up efforts to make its “health economy” a key economic driver, with the Public Health Ministry unveiling a strategic plan to develop six high-potential business sectors. The initiative is expected to inject about 690 billion baht into the economy, contributing 3.39% to the GDP. 

 

The ministry’s strategy includes boosting traditional Thai wellness industries, such as herbal medicine, health-focused cuisine and medical tourism, while also strengthening the manufacturing of medical devices. 

 

A new centre for advanced therapy medicinal products will also be established, alongside the expansion of the personal health and beauty sector. 

 

To support these goals, the government will set up a Health Economics Office. 

 

 

Private sector joins the push 

The Federation of Thai Industries (FTI), which represents 16,200 companies across 47 industry groups, has identified the health economy as a key part of Thailand’s "Next-Gen Industries". The sector will be developed under the health and beauty cluster, covering pharmaceuticals, food and beverages, medical devices, herbal products, cosmetics, food supplements, and biotechnology.

 

 

At a recent meeting chaired by Public Health Minister Somsak Thepsuthin, the ministry and the FTI agreed to form a joint steering committee to address economic and regulatory challenges. 

 

The committee will work to promote high-quality health products with international recognition, ensuring the sector remains competitive. 

 

“The 690 billion baht target is mainly driven by industries like Thai massage, but industrial manufacturing is expected to contribute significantly once it gains momentum,” Somsak said.

 

He also pledged to remove regulatory hurdles that slow down sector growth. 

 

 

Key industry challenges

The pharmaceutical industry has called for preferential treatment in government procurement to support local manufacturers, while the cosmetics sector is pushing for faster regulatory approvals to match global innovation speeds.

 

The herbal industry, meanwhile, seeks increased government purchases of locally grown herbs and greater private-sector participation in marketing, including at international events like Osaka Expo 2025. 

 

 

FTI chief Kriengkrai Thiennukul underscored the need for Thailand to adapt to shifting global trends as rising labour costs and competition from cheaper imports threaten traditional industries. He highlighted the health and beauty sector as a critical engine for future growth. 

 

“The current value of Thailand’s health products industry stands at around 1 trillion baht, with imports at 537 billion baht and exports at 543 billion baht – accounting for 10% of the GDP. This sector will play a crucial role in helping Thailand achieve its 5% GDP growth target,” he said. 

 

 

Thailand’s health economy: A market snapshot

• Pharmaceuticals: 83 billion baht production, 190 billion baht imports, 2.8 billion baht exports
• Herbal products: 83 billion baht production
• Medical devices: 168 billion baht production, 90 billion baht imports, 118 billion baht exports
• Food: 190 billion baht imports, 320 billion baht exports.
• Food supplements: 7.7 billion baht imports, 974 million baht exports
• Cosmetics: 320 billion baht production, 42 billion baht imports, 90 billion baht exports
• Biotechnology: 120 billion baht production.

 

 

Nakha Thawichawat, chairman of the Health and Beauty Industry Cluster, said collaboration between the Public Health Ministry and the FTI will be guided by four key policies: strengthening industrial networks, advancing new industries, reforming regulations to facilitate business, and enhancing Thailand’s global competitiveness. 

 

Meanwhile, the newly formed joint steering committee will focus on positioning Thailand as a leading Medical & Wellness Hub, fostering public-private partnerships, and publishing a quarterly industry index to track progress.