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Thailand E-commerce to Skyrocket by 13.7% in 2024

Thailand E-commerce Market to Surge by 13.7% in 2024.Thailand’s e-commerce sector is poised to experience a remarkable 13.7% surge in 2024, according to an in-depth analysis by GlobalData, a premier data and analytics company, in a robust display of digital market expansion. This anticipated growth underscores the accelerating consumer shift towards online shopping, driven by heightened internet penetration and increased smartphone usage nationwide.

GlobalData’s E-Commerce Analytics has spotlighted the dynamic trajectory of Thailand’s online retail landscape, which witnessed an impressive compound annual growth rate (CAGR) of 11.1% from 2019 to 2023. This growth trajectory propelled the market to a valuation of THB2 trillion ($58.7 billion) by the end of 2023. The market is projected to escalate to THB 2.3 trillion ($66.7 billion) in 2024.

Ravi Sharma, Lead Banking and Payments Analyst at GlobalData attributes this exponential growth to several key factors. “Thailand boasts one of the largest e-commerce markets in Southeast Asia, supported by a large young population and rising internet and smartphone penetration. Improving logistics, a rise in the number of middle-income families, increasing confidence in online payments, and the availability of alternative payment solutions will further aid e-commerce growth,” Sharma explains.

Thailand - E-commerce Value.

Supporting this forecast, GlobalData’s 2023 Financial Services Consumer Survey revealed that over 92% of Thai consumers engaged in online shopping within the past six months, with a mere 4% abstaining from digital purchases entirely.

The survey also highlighted the diverse range of payment methods Thai consumers favour. Bank transfers emerged as the most preferred payment tool, commanding a 38.2% share of e-commerce transactions in 2023. Following closely were alternative payment solutions, which collectively accounted for 24.4% of transaction value, with prominent brands like TrueMoney, PayPal, and ShopeePay leading the charge.

Payment cards also gain traction, representing 21.6% of the transaction value. The convenience and various pricing benefits of payment cards, such as cashback, discounts, reward points, and instalment payment options, drive this uptick.

Despite the growing inclination towards electronic payments, a significant portion of online purchases in Thailand is still conducted in cash. This trend is partly fueled by ongoing concerns about online payment fraud, which continues to influence consumer behaviour.

Sharma concludes with an optimistic outlook: “Thailand’s e-commerce landscape continues its upward trajectory and is poised for substantial growth between 2024 and 2028. We anticipate a compound annual growth rate of 11.2% in transaction value, reaching an estimated THB3.5 trillion ($101.9 billion) by 2028.”

GlobalData’s 2023 Financial Services Consumer Survey was conducted in Q2 2023. It surveyed approximately 50,000 respondents aged 18 and above across 40 countries, providing comprehensive insights into evolving global consumer trends.

As Thailand’s digital economy advances, the e-commerce sector’s robust growth signifies a transformative shift in consumer behaviour, paving the way for a more connected and digitally proficient market landscape. The continued investment in infrastructure and digital payment innovations will be crucial in sustaining this growth momentum and addressing consumer concerns about online security.

 

 

 

Written by: My Thanh Pham

 

 

 

 

 

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