Thai pharmaceutical industry moving up the value chain

Although the pharmaceutical industry in Thailand is currently somewhat limited in terms of development, with the majority of drugs being generic and mainly produced for domestic use, there is still great potential for growth in the industry.

Key Takeaways

Thailand’s pharmaceutical industry has great potential for growth, driven by increasing demand for healthcare services due to the aging population and rising prevalence of chronic diseases.
The adoption of generative AI, data-driven drugs, and biotechnology is expected to significantly impact the development of pharmaceuticals in Thailand.
Despite active research and development in the industry, challenges such as government policies and infrastructure development need attention to facilitate efficient drug development and enhance competitiveness.

The complete medical industry is one of the target industries in the New S-Curve that Thailand is accelerating to become the medical hub of Asia. In addition to Thailand’s potential in healthcare, pushing and supporting the pharmaceutical industry is another important factor that will help enhance the value chain of Thailand’s medical industry.

The pharmaceutical industry in Thailand is currently limited in its development, with a majority of the production focusing on generic drugs and serving the domestic market. However, there is potential for growth, as the market value of pharmaceuticals in the country is projected to increase by 6-7% annually over the next 3 years, reaching approximately 3.2 trillion baht by 2027. This growth is driven by increasing demand for healthcare services due to Thailand’s aging population and the rising prevalence of non-communicable chronic diseases.