Pharmaceutical market in Thailand - statistics & facts
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With a market value of around 225 billion Thai baht, Thailand’s pharmaceutical market is among the largest in Southeast Asia. The consistent rise in health expenditure underscores the growing importance of the healthcare sector in Thailand's economy. Its Universal Health Coverage scheme has made medicines more affordable and accessible to the public, contributing to the rising market value of pharmaceuticals in Thailand. The government has also reintroduced strategic plans to develop Thailand into a global medical hub to attract foreign patients and medical tourists.
Rising health expenditures, government support, and an aging population contribute to Thailand’s rising pharmaceutical market. The country’s focus on accessibility and affordability strengthens its position in Southeast Asia’s healthcare sector.
Thailand’s pharmaceutical production and its key players
In 2023, Thailand produced over 80 billion Thai baht of modern medicine with solution drugs in the leading category. The pharmaceutical industry primarily caters to domestic demand, with 90 percent of products manufactured in the country consumed locally. The market is served by a mix of local companies specializing in low-priced generics and multinational firms importing patented drugs. Novartis and Mega Lifesciences are among the top revenue generators in Thailand's pharmaceutical sector.Distribution channels and market composition
In 2023, Thai hospitals generated around 80 percent of the total sales from pharmaceutical drugs. Among the prescription drugs distributed by hospitals, generic drugs hold a substantial market share. On the other hand, the sales value from pharmacies and drug stores in Thailand is poised for continued growth. This upward trend reflects the expanding role of pharmacies in the country's healthcare landscape, particularly as over-the-counter medications account for a significant portion of pharmaceutical distribution alongside hospital channels. In 2023, there were approximately 21,700 pharmacies nationwide, with about 3,400 licensed to sell modern medicine in Bangkok alone. This underscores the importance of pharmacies in providing accessible healthcare products to the Thai population.What’s next for the Thai pharmaceutical market?
The pharmaceutical business is set to profit from Thailand's expanding silver economy, given that a fifth of the country's residents are elderly. Additionally, the market for medications and dietary supplements is benefitting from the increase in health consciousness among consumers post-COVID-19. In 2021, The Board of Investment of Thailand has permitted an eight-year income tax exemption for investments in medical food and food supplement. Furthermore, a partnership between the public and private sectors called "Community Pharmacy" enables the National Health Security Office (NHSO) to expand the range of care options available to those covered by UCS. In the event of a minor illness with one of the 16 symptom groups, one can consult a pharmacist at a community pharmacy and receive free medication.Rising health expenditures, government support, and an aging population contribute to Thailand’s rising pharmaceutical market. The country’s focus on accessibility and affordability strengthens its position in Southeast Asia’s healthcare sector.
