Promising Outlook for Thailand’s Pharmaceutical Industry

Thailand’s pharmaceutical market is expected to experience consistent growth, fueled by robust local production and strong government backing, even amidst economic challenges. By 2034, generic drugs are anticipated to account for 50% of the market.

Key View

• We anticipate steady growth in Thailand’s pharmaceutical market, even amid the country’s broader economic slowdown.
• The government’s focus on local production will create opportunities for domestic drugmakers, while regulatory challenges may impact market entry for foreign drugmakers.
• By 2034, the generic market segment will account for around 50% of Thailand’s pharmaceutical market. 

We anticipate steady growth in Thailand’s pharmaceutical market, even amid the broader economic slowdown. According to our Country Risk team, Thailand’s real GDP growth decelerated slightly from 3.2% year-on-year in Q4 2024 to 3.1% in Q1 2025. Despite this moderated economic expansion, in June 2025, Thailand’s House of Representatives approved the fiscal year 2026 budget, allocating THB265bn (USD8.1bn) to the National Health Security Office (NHSO). This allocation underscores the government’s commitment to bolstering national healthcare and ensuring widespread access to medical services.