Art toy proves driving force behind Thai digital content growth in 2023

The overall industry expanded slightly in 2023, driven by the burgeoning art toy trend and the resilience of the character industry. However, the gaming and animation sectors experienced setbacks.

The DEPA analysis, conducted in collaboration with industry associations, revealed that the total value of the Thai digital content industry reached 44.236 billion baht in 2023. The character industry, fuelled by the art toy trend, saw a significant increase of 21%, reaching a total value of 2.445 billion baht.

"The art toy trend has been a major driving force behind the growth of the character industry," said Sumit Sima-kul, president of the Thai Digital Content Association. "As purchasing power increases, tourists are becoming a significant target market for character products. Additionally, the popularity of art toys has led to a surge in demand for character merchandising, which has contributed significantly to our industry's expansion."

The e-book industry also experienced steady growth, expanding by 7% to 3.971 billion baht. Kawita Puksai, a representative from the electronic book industry, noted that the continued growth in content consumption has been a key factor driving the industry's expansion. 

"However, we still rely heavily on imported content from China, Korea, and Japan, which represents a significant opportunity for local content creators," she added.

While the overall industry showed signs of expansion, the gaming and animation sectors faced challenges. The gaming industry contracted by 0.78% to 34.288 billion baht, primarily due to decreased user spending on mobile platforms.

"The decline in the gaming industry can be attributed to a decrease in user spending on mobile platforms, both iOS and Android," said Nenin Ananbanchachai, president of the Thai Game Software Industry Association. "This trend has persisted for two consecutive years, impacting the overall value of the gaming industry."

Despite the challenges, Nenin expressed optimism about the future of the gaming industry.

"We are actively working to promote the development of local talent and create a more favorable environment for game developers," he said. "By fostering innovation and creativity, we believe that the Thai gaming industry can compete on a global scale," he noted.

To foster growth in the gaming industry, the DEPA and its partners have been actively promoting the development of local talent through initiatives such as the Game Online Academy and Game Accelerator Program.

Additionally, efforts are underway to create a more favourable environment for game developers and to raise awareness of the industry's potential beyond entertainment.

Meanwhile, the animation industry experienced a decline of 10%, with a total value of 3.532 billion baht, attributed to increased outsourcing of CG/VFX production and a shrinking market for derivative works.

"The competition from foreign production houses has intensified," said Santi Laohaburanakit, a representative from the Thai Animation and Computer Graphics Entrepreneurs Association. "The strengthening of the baht has also made it more challenging for Thai animation studios to compete on price."

Still, the DEPA remains optimistic about the future of the Thai digital content industry. 

Kasititorn Pooparadai, senior executive vice president of the DEPA's Strategy and Management Unit, highlighted the overall resilience of the Thai digital content industry. 

"Despite the challenges faced by specific sectors, the industry as a whole has demonstrated remarkable resilience. We are confident in its continued growth and ability to significantly contribute to Thailand's digital economy," he said. The  DEPA is committed to assisting the industry in navigating these challenges and capitalising on AI's potential for growth and innovation, he added. 

Meanwhile, with strategic government support and industry collaboration, he expected the industry to continue growing at an average rate of 4% over the next three years. The total industry value is projected to reach 50.694 billion baht by 2026.

Kasama Kongsmak, executive vice president of DEPA's Digital Strategy and Security Promotion Unit, echoed Kasititorn's optimism. 

She said the Thai digital content industry has the potential to continue expanding.

"With the right support and policies, we can create a thriving ecosystem that fosters innovation and creativity," she added. 

As the digital landscape evolves, the DEPA is also addressing the impact of artificial intelligence (AI) on the industry. While AI offers opportunities for content creation and customisation, it also presents challenges such as copyright issues and job displacement. 

The DEPA remains committed to supporting the growth and development of the Thai digital content industry, she said. Through its various initiatives, the DEPA aims to create a favourable environment for industry players, promote talent development, and facilitate collaboration between the public and private sectors, she added.