Thailand Tackles Aging Crisis by Expanding Elderly Care Industry

Thailand’s rapidly aging population is driving a sharp increase in demand for elderly care facilities, spurring significant investments in the sector.

Key takeaways

• Thailand’s aging population is driving an urgent need for elderly care facilities, with demand outpacing available infrastructure.
• Investments from hospitals and real estate developers are fueling the rapid expansion of senior care homes nationwide.
• Premium senior living models like Sawangkanives offer affordable and independent housing solutions with medical support.

Thailand’s rapidly aging population is fueling a surge in demand for elderly care facilities, driving substantial investments in the sector. This shift has attracted both domestic and international investors eager to develop state-of-the-art care homes, retirement communities, and specialized medical centers designed for senior citizens. To support this growing need, the government is actively encouraging private sector involvement by offering incentives and simplifying regulations. Consequently, the elderly care industry is emerging as one of Thailand’s most promising sectors, fostering innovation and partnerships focused on enhancing the quality of life for the aging population.

Experts warn that the country’s infrastructure is insufficient to meet the growing needs of seniors, with only 785 care centers serving a rapidly expanding elderly population.

One successful senior living model example is Sawangkanives, a nine-story condominium in Samut Prakan, 40 kilometers south of Bangkok.

Managed by the Thai Red Cross, the facility spans 36,800 square meters and features 468 units designed to provide independent living with medical support.

Eighty-seven-year-old retired nurse Yupadee Sukosol obtained a lifelong residency at Sawangkanives for 650,000 baht ($19,225), significantly less than similar accommodations in Western countries. She noted that it is far more affordable than senior care homes in the U.S.

A growing aging population

Thailand is experiencing a demographic shift that presents significant challenges for elderly care. According to the Ministry of the Interior, 20% of the population, 13 million people is aged over 60, while an additional 16 million are between 43 and 58. 

Despite this, the country has just 785 senior care centers with a total capacity of 20,000, primarily located in Bangkok and other major cities, according to the Real Estate Information Center (REIC).

As traditional family structures evolve, fewer younger relatives are available to provide care. This shift is driving demand for professional elderly care facilities, a sector valued at 2.5 billion baht in 2024, according to the Department of Business Development under the Ministry of Commerce. TTB Analytics forecasts an annual growth rate of 30%, predicting the market will reach 20 billion baht by 2033.

The surge in demand has attracted investment from hospitals, hotel operators, and real estate developers. 

Principal Capital Public Company, a private healthcare provider, has partnered with Baan Lalisa Healthcare Service Group to expand its nursing home operations nationwide.

Baan Lalisa CEO Athiporn Poolsawaddi aims to establish a premium brand, currently managing 26 branches, with further expansion plans in progress.

As Thailand navigates the complexities of an aging society, the elderly care industry is rapidly evolving, offering new opportunities for investors while ensuring seniors have access to secure and dignified living environments.