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The retail market size in Thailand is expected to reach USD 63.19 billion, surging at a CAGR of 5.95% from 2022 to 2027. The market exhibits a fragmented structure and demonstrates a 5.41% Year-over-Year (YOY) growth. The report covers diverse dimensions such as the market size (forecast and historic data), influential drivers, analysis of prominent companies, and evolving trends, presenting a comprehensive outlook on the global market scenario. The rapid demand for convenience food products and the provision of value-added services is the upcoming trend and driving the growth of the Thailand Market. The reports offer crucial insights of the industry's changing dynamics, helping businesses to identify growth opportunities in the constantly evolving digital landscape.
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Offline: The market share growth by the offline segment will be significant during the forecast period. In 2020 the offline distribution channel accounted for the highest market share, with most retail products getting sold through physical stores. These included companies' proprietary outlets and organized stores such as departmental stores, hypermarkets, and supermarkets. Departmental stores, speciality stores, hypermarkets, and supermarkets are expected to account for the highest sales of products during the forecast period. Therefore, the offline distribution channel is expected to surge forward in terms of growth during the forecast period.
The offline segment was valued at USD 149.46 billion in 2017 and continued to grow by 2021. The offline distribution segment is considered the most effective mode of distribution as it offers the touch-and-feel experience to consumers, considered the most influential means of marketing. Offline physical stores are projected to expand significantly in the country during the forecast period and enhance the reach and visibility of products. Additionally, almost all products are easily available in most organized stores, such as specialty stores, hypermarkets, supermarkets, and departmental stores across the country. Such factors will increase segment growth during the forecast period.
The market in Thailand is undergoing a transformative phase fueled by increasing disposable incomes and a rapid digital revolution. Investments in cutting-edge technologies are reshaping customer behaviors and expectations, with widespread smartphone penetration and a tech-savvy Gen-Z population driving the shift towards mobile commerce, one-click ordering, and voice shopping. Retailers are leveraging chatbots, mobile wallet payments, IoT, AI, AR, and VR to enhance operational efficiency and provide personalized product recommendations. Both in-store and online shopping experiences are being revolutionized through data analytics, machine learning, and streamlined inventory management and order fulfillment processes. Moreover, there is a growing emphasis on sustainability and environmental stewardship, with retailers adopting eco-friendly practices to reduce carbon footprints and promote environmental sustainability.
One of the key factors driving growth is the growing demand for convenience food products.
The retail market in Thailand is experiencing significant growth, driven by several key factors such as rising disposable incomes, widespread digital transformation, and substantial investments in innovative technologies. With the proliferation of smartphones and a tech-savvy Gen-Z population, retailers are embracing mobile commerce, one-click ordering, and voice shopping to cater to evolving customer behaviors. Additionally, the integration of chatbots, mobile wallet payments, IoT, AI, AR, VR, and automation is enhancing operational efficiency and providing customized product recommendations. Both in-store and online shopping experiences are being enhanced through data analytics, machine learning, and efficient inventory management, contributing to sustainability and environmental stewardship through eco-friendly practices and reduced carbon footprints.
Convenience food products are a type of processed and ready-to-eat food where the food is cooked partially and requires only limited preparation before consumption. With the rising busy daily schedules and an increase in the number of working women, the preference for convenience food products, including processed meat and poultry products, is increasing when compared with home-cooked food that needs to be prepared from scratch.
The surge in sales through the online distribution channel is a key market trend.
In recent times, sales of products through the online distribution channel have undergone a substantial surge. Both established and private retailers are effectively selling their products through online shopping portals. As the online distribution channel eliminates the need for physical stores, merchandise, salespeople, and inventory, both established and private retailers in the market are focusing more on online sales.
Also, retailers are leveraging factors such as the significant increase in internet and smartphone penetration in the country to offer their products online. Factors such as the rapidly expanding population of working women, the rising number of nuclear families, and busy lifestyles discourage consumers from going to brick-and-mortar stores to fulfill their requirements. Therefore, consumers are increasingly adopting the online mode of shopping for buying FMCG and other products. Hence, the online distribution channel is a cost-effective option for both established and private retailers to sell their products.
A.S. Watson Group - The company offers retail solutions through G9 Store. Also, this segment focuses on operating retail stores for health and beauty products.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
The data presented is comprehensive, reliable, and a result of extensive research - both primary and secondary. The market research reports provide a complete competitive landscape and an in-depth vendor selection methodology and analysis using qualitative and quantitative research to forecast accurate market growth. For details analysis Buy Full Report
The market reflects the country's dynamic economic growth and bustling tourism industry. From supermarkets and hypermarkets to convenience stores and department stores, the modern trade sector offers a diverse range of services, including grocery items, apparel, electronics, and cosmetics. Online food retail and e-commerce platforms have gained popularity, catering to the urban population's convenience. High-quality brands are prevalent in supermarkets like Tesco Lotus and convenience stores like 7-Eleven and FamilyMart. With the influx of Chinese tourists, there's a rising demand for health solutions, herbs, and handicrafts. Urbanization levels drive consumer preferences toward daily necessities and personal care items, making Thailand's retail market a vibrant and ever-evolving landscape.
The market in Thailand is a dynamic landscape encompassing various sectors such as supermarkets/hypermarkets, smaller shops, and multinational retail companies like Unilever. With a focus on grocery products, fashion, health products, consumer electronics, and more, retailers cater to diverse consumer needs. The COVID-19 lockdown period significantly impacted the industry, particularly the tourism sector, prompting government plans to attract foreign investors and implement advanced technologies. Despite challenges, the industry in Thailand continues to evolve, with vendor insights driving innovation in grocery, apparel and footwear, and home and garden products. As the country gradually reopens and tourist arrivals increase, the retail sector anticipates further growth and adaptation to changing consumer preferences and market dynamics.
Retail Market In Thailand Scope |
|
Report Coverage |
Details |
Page number |
136 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.95% |
Market growth 2023-2027 |
USD 63.19 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.41 |
Regional analysis |
Thailand |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
A.S. Watson Group, Aeon Co. Ltd., Berli Jucker Public Co. Ltd., Central Group of Company, CJ Express Group Co. Ltd., CP All Public Co. Ltd., Foodland Supermarket Co. Ltd., Home Product Center Public Co. Ltd., Isetan Mitsukoshi Holdings Ltd., Rimping Supermarket, Robinsons Retail Holding Inc., Seven and i Holdings Co. Ltd., SPAR International, Tesco Plc, The Mall Group Co. Ltd., and Villa Market JP Co. Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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