Thailand: Ageing to spur health and beauty sector
Health and beauty businesses are recovering rapidly driven by the country’s growing senior population and growing concerns regarding the Covid-19 pandemic.
Deputy Commerce Minister Sinit Lertkrai said the growing elderly population has a positive effect on health and beauty services as elderly people tend to take greater care of themselves while the pandemic had resulted in new lifestyle trends such as work-from-home, an uptick in exercise, growing health concerns and greater demand for hygienic food, vitamins and supplements.
According to the Business Development Department’s latest report, registrations of new health and beauty businesses rose by 90% from 167 to 353 in the first eight months of this year, representing newly registered capital of 969 million baht, a jump of around 213% from the same period last year.
In 2021, 186 new health and beauty businesses were registered with a combined registered capital of just 310 million baht.
There were 1,621 health and beauty businesses registered and operated in Thailand as of Aug 31 this year, accounting for 0.19% of all businesses operated in the country. Registered capital stood at 7.51 billion baht, accounting for 0.03% of total registered capital of businesses operating in the country.
Most health and beauty businesses are located in Bangkok (836), followed by the central region (224), the northeastern region (180), the northern region (175), the eastern region ( 101), the southern region (78) and the western region (27).
Mr Sinit said Thai investors ranked first with capital valued at 7.28 billion baht (97%), followed by China with 80.9 million (1.08 %), Hong Kong with 38.6 million (0.52%), Italy with 34 million (0.45%), followed by “other nationalities” with capital valued at 71.5 million (0.96%).
In the past five years, the average revenue from the health and beauty business stood at around 15 billion baht per year. In 2019, the revenue of the business stood at 16 billion baht, before falling to 14.3 billion baht in 2020. The market in 2021 recovered with 5.85% growth from the year before to 15.1 billion baht.
In 2022, said Mr Sinit, the global market business volume is expected to reach 206 trillion baht, with the figures expected to continue to grow in line with the rise in the proportion of the elderly population.
Data from the Provincial Administration Department under the Interior Ministry, as of Dec 31, 2021, showed Thailand had a total population of 66.1 million, with the number of elderly people (aged 60-150) standing at 12.2 million or 18.5% of the total, 5.43 million of whom were male and 6.81 female.
Bangkok had the biggest elderly population in the country with 1.17 million, followed by Nakhon Ratchasima with 495,452, Chiang Mai with 379,118, Khon Kaen with 340,855 and Ubon Ratchathani with 303,720.
Thailand is expected to become an “aged” society this year or next, with people aged 60 and above set to account for 20% of the population.
The country has been classified as an “ageing” society since 2005, meaning 10% of the population is aged 60 or above.
This trajectory has Thailand becoming a “super-aged” society in 2031 or 2032, where those aged 60 and make up over 28% of the population.
“Thailand has already become an ageing society. The elderly are considered at-risk groups that are prone to various diseases and need more care than other ages. Therefore, demand for services and health businesses will continue to increase as well,” said Mr Sinit.