Robust Expansion Driven by Consumer Trends, Payment Innovations, and Enhanced Logistics.
Thailand’s e-commerce market is set to experience robust growth, with expectations of a 13.7% increase in 2024. The market, which reached $58.7 billion (THB 2 trillion) in 2023, is projected to expand to $66.7 billion (THB 2.3 trillion) by the end of 2024, according to GlobalData.
Several factors are fueling this significant growth. Increasing consumer preference for online shopping and strong internet penetration are at the forefront of this trend. Thailand boasts one of Southeast Asia's largest e-commerce markets, largely supported by its young population, widespread internet and smartphone usage, and ongoing improvements in logistics infrastructure.
Ravi Sharma, lead banking and payments analyst at GlobalData, highlights that the rise in middle-income families, growing confidence in online payments, and the availability of diverse payment solutions are further boosting e-commerce. He notes that enhanced logistics and alternative payment methods are also contributing to this upward trajectory.
According to GlobalData’s 2023 Financial Services Consumer Survey, over 92% of Thai consumers have engaged in online shopping in the past six months, while only 4% have never shopped online. Bank transfers emerged as the most popular payment method, accounting for 38.2% of the total e-commerce transaction value in 2023. Alternative payment solutions, such as TrueMoney, PayPal, and ShopeePay, represented 24.4% of transactions, while payment cards contributed 21.6%.
Despite the growth in electronic payments, cash remains a significant payment method for online purchases, driven by concerns over online payment fraud. This underscores the ongoing need for trust and security in the e-commerce payment landscape.
Looking ahead, Thailand’s e-commerce sector is expected to maintain its growth momentum. GlobalData forecasts a compound annual growth rate (CAGR) of 11.2% from 2024 to 2028, with the market anticipated to reach $101.9 billion (THB 3.5 trillion) by 2028. This continued expansion reflects Thailand's strong position in the e-commerce arena and its potential for further development as the digital landscape evolves.
These statistics underscore the vital role and crucial position of Thailand's e-commerce in the national economy. They serve as pillars for Thailand's economic growth, providing robust support and impetus for stable economic development. Within Thailand's evolving Import and Export growth and the growing need for regional trade alliances, Mail Boxes Etc.’s service plays a pivotal role in catering to the escalating demands for efficient freight services such as meticulous cargo tracking, robust supply chain management, and adaptable logistics solutions tailored to diverse product categories and specific target markets.
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