Intellify Industry Report
This industry report is updated regularly on a periodic basis by our local research analysis team to ensure accuracy and relevance. The content is developed using publicly available information, insights gathered from primary interviews with industry stakeholders, and other relevant market research methodologies. Market size estimations presented in this report are based on actual data collected from relevant government agencies and industry sources. Our data analyst team applies a proprietary projection model to forecast future growth potential. While we strive to maintain the highest standards of data accuracy and analysis, the findings in this report are subject to change as new information becomes available. This report is intended for informational purposes only and should not be considered as financial, investment, or strategic advice.
Thailand’s pharmaceutical industry is projected to grow at a compound annual growth rate (CAGR) of 4.7%, rising from THB 175.4 billion in 2025 to over THB 220.8 billion by 2030. Growth is expected to be driven by several factors, including an aging population, the prevalence of non-communicable diseases (NCDs), expansion in medical and wellness tourism, improved access to healthcare facilities—particularly through the decentralization of public general hospitals and the growth of pharmacy chains—and supportive government policies promoting pharmaceutical innovation as part of the new S-curve industries.
Pharmaceutical companies are responding to these trends by prioritizing innovation in areas such as precision medicine and preventative healthcare solutions. Efforts are also being directed toward improving operational efficiency and expanding customer reach through digital transformation, including leveraging digital platforms and integrating AI into their value chains. For local players, challenges remain due to a heavy reliance on imported active pharmaceutical ingredients (APIs), increasing pressure from stringent regulatory standards for the production and distribution of pharmaceutical products, and intensified competition with state-owned manufacturers.
As prescription drugs continue to dominate the market, driven by rising prevalence of NCDs and expanding healthcare coverage, companies could explore opportunities to align their portfolios with chronic disease management and age-related illnesses. The rising adoption of preventative care and wellness products further suggests an avenue for players to diversify into nutraceuticals and herbal medicines, leveraging Thailand’s biodiversity and growing consumer health awareness. To address competitive pricing dynamics, particularly against low-cost imports, market differentiation through R&D-driven innovation and localized formulations could position firms more favorably in both public and private sectors. In terms of distribution, building a strong sales network and maintaining relationships with healthcare professionals (HCPs) is important for establishing brand trust and influencing prescribing decisions. HCPs are key decision-makers in the pharmaceutical market, and consistent engagement helps ensure new products are top of mind. These relationships can also support efforts to get products included on drug lists for public hospitals, as trust and familiarity with the brand often play a role in such decisions.
Thailand’s pharmaceutical industry is projected to grow at a compound annual growth rate (CAGR) of 4.7%, increasing from THB 175.4 billion in 2025 to over THB 220.8 billion in 2030. During this period, prescription drugs are expected to be the primary growth driver, with sales projected to rise from THB 143.1 billion in 2025 to THB 181.1 billion in 2030. This growth is attributed to the central role of prescription drugs in the pharmacy retail market, driven by their higher profit margins and prices. Analysis of local data indicates that ex-factory prices are marked up by an average of 5–7 times for end customers. Demand for prescription drugs is further supported by the rising prevalence of non-communicable diseases (NCDs). Consequently, many pharmaceutical companies are focusing their strategies on capturing growth opportunities within this market segment.
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | Indicator | Unit | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 32 | intellify | 12/01/2025 05:11 PM | intellify | 12/01/2025 05:11 PM | Pharmaceutical market size | THB million | 119287 | 128923 | 140684 | 153417 | 155611 | 168294 | 175397 | 183535 | 192793 | 201527 | 211438 | 220806 |
| 33 | intellify | 12/01/2025 05:11 PM | intellify | 12/01/2025 05:11 PM | Prescription drug market size | THB million | 96181 | 104226 | 113868 | 124498 | 126535 | 137126 | 143066 | 149863 | 157589 | 164903 | 173196 | 181061 |
| 34 | intellify | 12/01/2025 05:11 PM | intellify | 12/01/2025 05:11 PM | OTC drug market size | THB million | 23106 | 24697 | 26816 | 28919 | 29076 | 31168 | 32331 | 33672 | 35204 | 36624 | 38242 | 39745 |
In contrast, the market for over-the-counter (OTC) drugs is expected to expand at a CAGR of 4.2%, increasing from THB 32.3 billion in 2025 to THB 39.8 billion in 2030. However, medicine consumption in volume terms has remained relatively stable on a per capita basis, with market growth primarily driven by a shift toward higher-value medicines. This reflects reduced reliance on self-medication as access to medical care improves, leading to greater sales of prescription medicines. As a result, the OTC drug segment’s share of total pharmaceutical sales is expected to decline slightly, from 18.4% in 2025 to 18.0% in 2030, as the demand for prescription drugs outpaces that of OTC products.
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | Indicator | Unit | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 35 | intellify | 12/01/2025 05:11 PM | intellify | 12/01/2025 05:11 PM | Pharmaceutical market size | THB million | 119287 | 128923 | 140684 | 153417 | 155611 | 168294 | 175397 | 183535 | 192793 | 201527 | 211438 | 220806 |
| 36 | intellify | 12/01/2025 05:11 PM | intellify | 12/01/2025 05:11 PM | Pharmaceutical tablet market size | THB million | 56635 | 66553 | 67273 | 74687 | 75960 | 84758 | 89151 | 92726 | 98358 | 103644 | 109628 | 114944 |
| 37 | intellify | 12/01/2025 05:11 PM | intellify | 12/01/2025 05:11 PM | Pharmaceutical capsule market size | THB million | 9042 | 10357 | 10395 | 10143 | 11282 | 12023 | 12351 | 12551 | 12965 | 13581 | 14009 | 14385 |
| 38 | intellify | 12/01/2025 05:11 PM | intellify | 12/01/2025 05:11 PM | Pharmaceutical cream market size | THB million | 10153 | 9166 | 13273 | 12925 | 13312 | 14379 | 14958 | 16185 | 16752 | 17596 | 18495 | 19370 |
| 39 | intellify | 12/01/2025 05:11 PM | intellify | 12/01/2025 05:11 PM | Pharmaceutical injectable market size | THB million | 12216 | 10519 | 11161 | 10707 | 11314 | 11685 | 11239 | 11172 | 11117 | 11170 | 11075 | 10911 |
| 40 | intellify | 12/01/2025 05:11 PM | intellify | 12/01/2025 05:11 PM | Pharmaceutical liquid market size | THB million | 25217 | 26363 | 28914 | 34125 | 33675 | 33532 | 34446 | 35650 | 36981 | 37479 | 38060 | 38876 |
| 41 | intellify | 12/01/2025 05:11 PM | intellify | 12/01/2025 05:11 PM | Pharmaceutical powder market size | THB million | 6024 | 5965 | 9669 | 10830 | 10068 | 11915 | 13252 | 15251 | 16620 | 18057 | 20172 | 22320 |
In terms of drug formats, tablets and capsules are projected to account for 57.9% of the total pharmaceutical market size, followed by liquids with a 19.6% share. From 2025 to 2030, these segment proportions are expected to remain relatively stable, with the exception of injectables, which are likely to decline in proportion. The dominance of tablets in Thailand’s pharmaceutical market is attributed to their practicality, cost efficiency, and versatility. Tablets are easy to store, transport, and consume, making them well-suited for widespread distribution and patient use. They are also less expensive to produce compared to injectables and cater to a broad range of medical conditions, particularly chronic diseases such as diabetes and hypertension. The decentralization of healthcare services and the expansion of pharmacies have further driven reliance on tablets, particularly for outpatient care.
The declining share of injectables is associated with shifting healthcare priorities and logistical challenges. Greater emphasis on chronic disease management and preventive care has increased demand for oral medications, reducing reliance on injectables typically used in acute care settings. Injectables require administration by trained professionals and incur higher storage and distribution costs, including the need for cold chain logistics, which limits their accessibility in decentralized healthcare systems. Additionally, advances in tablet formulations have provided effective alternatives to injectable therapies, further supporting the preference for tablets across various treatments.
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | Indicator | Unit | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 42 | intellify | 12/01/2025 05:13 PM | intellify | 12/01/2025 05:13 PM | Pharmaceutical production quantity, total | Tonnes | 46406 | 43548 | 39344 | 43696 | 39576 | 37136 |
| 43 | intellify | 12/01/2025 05:13 PM | intellify | 12/01/2025 05:13 PM | Pharmaceutical sales quantity, total (factory level) | Tonnes | 40243 | 37948 | 34830 | 37628 | 35300 | 32635 |
| 44 | intellify | 12/01/2025 05:13 PM | intellify | 12/01/2025 05:13 PM | Pharmaceutical export quantity, total | Tonnes | 5804 | 5300 | 4933 | 5281 | 4679 | 4125 |
Factory-level sales, export, and production have been growing, with the export market generally contributing to a minority of total domestic production, around 11-12% historically over the last five years.
Medical & wellness tourism
Thailand has firmly established itself as a leading destination for medical and wellness tourism, supported by competitive healthcare costs and internationally accredited facilities. As of 2025, the country hosts over 62 Joint Commission International (JCI) hospitals, attracting medical tourists from regions such as the Middle East, China, and ASEAN. These visitors are primarily drawn to services including surgeries, dental care, and anti-aging therapies. The Tourism Authority of Thailand estimates approximately 2 million medical tourists annually, generating substantial revenue for private hospitals. Government initiatives, such as extended medical visas and strategic plans to position Thailand as a global medical and wellness hub by 2026, are expected to further bolster the influx of international patients.
This thriving medical and wellness tourism sector presents growth opportunities for Thailand’s pharmaceutical industry. The demand for advanced treatments and therapies fuels the need for high-value pharmaceutical products, including biopharmaceuticals, vaccines, and precision medicine. Additionally, the popularity of anti-aging and wellness services creates a growing market for nutraceuticals and herbal medicines. We expect that Thailand’s pharmaceutical manufacturers can leverage this demand to expand production along the rising number of foreign visitors that seek general treatment and Thai herbal medicine in the country.
Aging population and non-communicable diseases (NCDs)
Thailand’s pharmaceutical industry is forecast to experience sustained growth, driven by the rising prevalence of non-communicable diseases (NCDs) and an aging population. NCDs are more prevalent among patients aged over 60, often presenting with 3–5 comorbidities due to interrelated underlying conditions. For example, diabetes is frequently associated with hypertension and liver disease. Key NCDs in Thailand include hypertension, diabetes, cardiovascular diseases, oncology, and kidney disease.
The prevalence of these conditions has increased in recent years, influenced by urbanized lifestyles and the growing impact of air pollution, particularly PM 2.5. This form of pollution contributes to respiratory conditions such as bronchitis and rhinitis, as well as conjunctivitis and more severe health outcomes, including cardiovascular diseases and lung cancer.
Thailand’s demographic profile is shifting towards aging society with the population reaching 71.9 mn in 2024 and the median age rising to 40.1 years. The proportion of individuals aged 65 and above has grown to 16% and is projected to reach 21% by 2030, while the younger population (0–14 years) is expected to decline from 15% in 2024 to 13% by 2030. This demographic shift is expected to increase demand for pharmaceuticals targeting age-related illnesses such as cardiovascular diseases, diabetes, and cancer, as well as therapies for elderly care and chronic disease management.
National healthcare insurance scheme
The expansion of Thailand’s National Health Insurance Scheme (NHIS), particularly through the Universal Health Coverage (UHC) program, is expected to increase pharmaceutical demand by broadening access to healthcare services and medicines. The NHIS relies heavily on the National List of Essential Drugs (NLED), which ensures affordable medicine availability through cost-containment measures, including median pricing. As coverage expands, more individuals can access reimbursed medicines, driving higher demand for essential drugs in the public healthcare system. This demand is anticipated to be concentrated on generic medicines, which form a significant portion of the NLED and are supported by government policies favoring locally manufactured generics. Broader NHIS coverage also translates to increased patient volumes in public hospitals, particularly for treatments addressing high-prevalence conditions. While profit margins for pharmaceutical producers may be limited due to pricing constraints, the overall rise in medicine consumption offers growth opportunities, particularly for manufacturers supplying cost-effective generic options. This interplay between expanded healthcare access and a cost-focused pricing regime is expected to shape Thailand’s pharmaceutical market growth.
Demand for private health insurance
We expect that as more Thai population is stepping into middle class, there would be more customer base who could afford and therefore seek a wide range of premium private health insurance coverage packages. It is anticipated that greater privatization of healthcare insurance would also drive the demand for pharmaceutical products through greater utilization of private healthcare insurance reimbursement for medicines.
Private healthcare insurance in Thailand provides varying degrees of coverage for pharmaceutical products, contingent on the type of insurance policy and specific terms outlined in individual plans. Private healthcare insurance policies in Thailand are broadly classified into two categories:
Bio-Circular-Green (BCG) economy model
The Bio-Circular-Green (BCG) Economy model in Thailand was introduced in 2021 as part of the government’s long-term strategy to promote sustainable economic growth. Spearheaded by the National Science and Technology Development Agency (NSTDA) under the Ministry of Higher Education, Science, Research, and Innovation (MHESI), the model aims to integrate bio-economy, circular economy, and green economy principles to address pressing environmental challenges, foster innovation, and enhance Thailand’s global competitiveness.
Thailand’s BCG framework prioritizes specific segments of the pharmaceutical industry to align with its sustainability and innovation goals. Key products and areas supported under the model include:
Overall, the BCG model presents a comprehensive framework aimed at enhancing Thailand’s pharmaceutical sector through a combination of financial incentives, regulatory support, and capacity-building initiatives. For more detail of the key incentives provided under BCG for pharmaceuticals, please refer to our note (a).
Improved access to healthcare facilities & pharmacies
Pharmaceutical sales are expected to benefit from several factors: (a) the expansion of healthcare facilities, particularly through the strategic decentralization of general public hospitals across all provinces in Thailand to enhance universal access. While the number of general hospitals is projected to increase, major cases and referrals will continue to be directed to regional hospitals. The government has also focused on further strengthening primary care through initiatives such as the “New Way Public Health Service Units,” which involve partnerships with private clinics, pharmacies, and specialized health units. These efforts aim to reduce hospital overcrowding and improve access to healthcare services closer to patients’ homes. (b) The growth of local and chain pharmacy stores, particularly those operated by large retail players such as Pure (owned by Big C), Tops Care (owned by Central), and Pharmax (owned by CPALL), is anticipated to enhance market access due to their extensive storefront networks. (c) The increasing adoption of online pharmacy platforms, although still niche and facing unclear regulatory frameworks (please refer to note b on the state of regulations for online pharmacies). Interest in these platforms has grown, driven by initiatives from large private hospitals such as BDMS and new technology companies such as MorDee and Doctor Anywhere, which are leveraging aggressive promotions and marketing to encourage user adoption in the early stages of these innovations.
Limitations in advanced drug manufacturing
Thailand has 151 GMP-certified pharmaceutical production facilities, with only 8% capable of producing Active Pharmaceutical Ingredients (APIs) domestically, creating heavy reliance on imports. Research and development efforts are concentrated on vaccine innovation, reflecting limited capacity to develop new drug formulations. Few new formulations have been developed and approved locally. Although specific figures for the biopharmaceutical industry (40 bn THB in value with 25 bn THB of imports) require verification, the overall reliance on imported biopharmaceuticals aligns with industry trends.
Impact of GMP-PIC/S standards
Thailand adopted the PIC/S GMP standards in 2011, leading to increased operational costs and complexity for pharmaceutical producers. Upgrading facilities to meet these standards often involves substantial investment, with estimates ranging from 200 mn to 1 bn THB depending on production requirements. Smaller producers face heightened financial challenges, though the claim of up to 500 closures lacks direct confirmation. The stricter requirements underscore the need for significant industry adjustments to sustain compliance.
Regulations on storage and distribution
Effective January 1, 2022, new regulations introduced by the Ministry of Public Health mandate stricter requirements for drug storage and distribution. These include controlled temperature environments, mapping systems for storage facilities, and enhanced security measures to prevent unauthorized access. Compliance with these regulations requires significant infrastructure adjustments and operational overhauls, adding to the cost burdens for pharmaceutical producers and distributors.
Cost and competitive pressures
Pharmaceutical producers in Thailand face rising raw material costs, eroding profit margins. Competition from low-cost generic drugs imported from India and China exacerbates these challenges. To sustain competitiveness, local manufacturers need to invest in innovative production technologies and improve operational efficiency. This financial pressure comes at a time when the market demands cost-effective solutions to maintain their market position amidst global competition.
Restrictions on advertisement and online sales
Pharmaceutical advertising in Thailand is tightly regulated, especially for prescription and pharmacy-dispensed medicines, which can only be promoted to healthcare professionals and not to the general public. Over-the-counter medicines may be advertised to the public but require prior approval from the Thai FDA. All advertisements, including those on online platforms, must be reviewed and authorized by regulatory authorities before release. Concerns have arisen over unapproved online advertisements, with over 85% of such ads lacking FDA authorization. These restrictions limit the ability of pharmaceutical companies to educate consumers about new drugs, confining their communication primarily to healthcare professionals.
Competition from low-cost imports
Thailand’s pharmaceutical market faces strong competition from low-cost imports, particularly from India and China. In particular, India benefits from patent licensing laws that enable the production of affordable generic versions of patented drugs. Chinese and Indian manufacturers also leverage lower production costs, enabling them to offer more competitively priced products. This pricing advantage challenges domestic manufacturers, putting pressure on their profitability and market position.
Difficulty competing with state manufacturers
Private pharmaceutical manufacturers in Thailand face challenges competing with the state-owned Government Pharmaceutical Organization (GPO). The GPO benefits from lower production costs and established distribution networks, giving it a competitive edge. While regulations requiring public hospitals to purchase 80% of their drugs from the GPO have been relaxed, the GPO still retains significant advantages. These advantages, combined with its access to public healthcare contracts, create a competitive disparity that private sector manufacturers find difficult to overcome.
Reference prices and restrictive regulations
Drug pricing in Thailand is constrained by a reference price system established by the Ministry of Public Health and the Comptroller General’s Department. This system, intended to control healthcare costs, sets fixed prices for approved drugs purchased by public healthcare providers. While it ensures affordability, the system limits pricing flexibility, which may not align with production costs or market conditions. Additionally, restrictive regulations, such as the lengthy drug registration process and extensive documentation requirements, further delay the market entry of new products. These challenges discourage manufacturers from introducing innovative drugs, especially if pricing constraints hinder profitability.
Preventative and personalized medicine
Thailand’s pharmaceutical sector is experiencing rising demand for preventative healthcare products, including vitamins, herbal treatments, dietary supplements, and fortified drinks, driven by increased consumer awareness of overall wellness. For instance, the Genomics Thailand Initiative, launched in 2019, is a key driver of advancements in personalized medicine. This program aims to sequence 50,000 Thai individuals across various disease groups, such as cancers, rare diseases, and noncommunicable illnesses, enabling the development of tailored healthcare solutions. Institutions such as the Excellence Center for Genomics and Precision Medicine at King Chulalongkorn Memorial Hospital are advancing research in genetics, supported by the integration of next-generation sequencing technologies. These developments are expected to improve diagnostic accuracy and expand treatment options.
Digital and online healthcare solutions
Consumers increasingly use online platforms to purchase medications and health products, reflecting the sector’s shift toward digital convenience. Telemedicine now provides consultations for over 40 common illnesses, allowing patients to receive prescriptions and medications at home. Initiatives like A-MED Care Pharma enable individuals with minor conditions to collect medications from participating pharmacies. Additionally, healthtech startups, such as Arincare and BuyMed, are developing innovative solutions for pharmacy operations and drug distribution. The adoption of 24-hour vending machines further increases access to pharmaceuticals, addressing gaps in healthcare accessibility across different regions.
Integration of technology in pharmaceutical operations
Technological advancements are driving efficiency in Thailand’s pharmaceutical production and distribution. Artificial intelligence is being integrated into manufacturing processes to optimize production and streamline supply chains. Digital platforms are simplifying regulatory compliance by managing electronic Common Technical Document (eCTD) submissions. Additionally, online tools are improving transparency and efficiency in supply chain operations by connecting upstream manufacturing to downstream distribution. Investments in biotechnology and pharmaceutical research, including foreign participation, are fostering innovation in drug development and strengthening the sector’s technological foundation.
Sustainable and ESG-aligned practices
Sustainability is becoming a priority for Thailand’s pharmaceutical companies as they align with global ESG standards. Manufacturers are adopting eco-friendly inputs and renewable energy sources to reduce carbon footprints and greenhouse gas emissions. Efforts to mitigate environmental impacts also include enhanced waste management systems and reduced particulate pollution, such as PM2.5, during production. Pharmaceutical companies are improving transparency in reporting environmental impacts, demonstrating a commitment to sustainable practices. These measures aim to balance environmental responsibilities with operational goals, ensuring long-term viability in an evolving market
Prescription Drugs
Prescription drugs are medications that require authorization from a licensed healthcare provider before they can be dispensed. These drugs are typically used to treat conditions that require professional diagnosis, monitoring, or specialized care due to the complexity of treatment, potential side effects, or risk of misuse. Examples include medications for chronic conditions such as diabetes, hypertension, cardiovascular diseases, mental health disorders, and cancer, as well as antibiotics and biologics.
The sale and use of prescription drugs are tightly regulated to ensure patient safety and proper usage. In Thailand, these medications are only available in licensed pharmacies and require a valid prescription from a qualified healthcare professional. This regulatory framework ensures that prescription drugs are used appropriately, mitigating risks associated with self-medication and drug resistance.
Over-the-Counter (OTC) Drugs
OTC drugs are medications that can be purchased without a prescription, intended for self-treatment of common, minor health conditions that do not require a doctor’s supervision. They are designed for safe and effective use by the general public when taken as directed. Common OTC drugs include pain relievers (e.g., paracetamol, ibuprofen), antacids, antihistamines, cough suppressants, and cold remedies.
In Thailand, OTC drugs also encompass a specific category known as “ยาสามัญประจำบ้าน” (household remedies), which includes 52 types of basic medications legally approved by the Ministry of Public Health. These remedies are designed for the treatment of everyday ailments and are widely available in pharmacies, convenience stores, and general retail outlets.
Examples of Household Remedies:
OTC drugs and household remedies are essential to Thailand’s self-care strategy, promoting health literacy and reducing the burden on healthcare facilities.
The pharmaceutical industry in Thailand consists of public and private sector entities, each playing distinct roles in serving healthcare needs.
Public sector producers
Public sector pharmaceutical producers in Thailand focus on supporting the country’s healthcare infrastructure by ensuring access to essential and affordable medicines. These entities produce a range of original drugs, generics, and biopharmaceuticals, often targeting diseases with high public health significance such as non-communicable diseases (NCDs). Public manufacturers also play a role in reducing dependency on imported medicines and addressing national healthcare priorities.
Government Pharmaceutical Organization (GPO):
Defense Pharmaceutical Factory (DPF):
Siam Bioscience:
Local manufacturers (Private sector)
Local and contract manufacturers predominantly produce generic and over-the-counter (OTC) medicines, catering to domestic healthcare demands with a focus on affordability. Contract manufacturers also support multinational corporations by offering production services compliant with international quality standards, such as EU GMP and ISO. These manufacturers contribute to the public and private healthcare sectors by ensuring consistent availability of essential and cost-effective medicines.
Multinational corporations (MNCs)
Multinational pharmaceutical companies focus on producing and distributing original and high-value medicines, often targeting niche therapeutic areas and advanced treatments. These firms frequently act as import agents for premium products and rely on global research and development (R&D) to deliver innovative medicines. MNCs emphasize compliance with international regulations, strong relationships with healthcare professionals, and strategic partnerships to maintain market presence. Pricing strategies are often premium, aligning with the focus on advanced therapies and specialized treatments.
Drug Act B.E. 2510 (1967) and Amendments
The act serves as the primary legislation governing pharmaceuticals in Thailand. It mandates that manufacturers, importers, and sellers of pharmaceuticals obtain licenses from the Thai Food and Drug Administration (FDA). These licenses are valid for one calendar year and must be renewed annually before December 31st. After obtaining a license, manufacturers or importers must register each medicinal product by submitting a detailed dossier to the Thai FDA. Compliance with Good Manufacturing Practice (GMP) standards is compulsory for all manufacturers, ensuring quality control throughout the production process. The Act also includes specific rules on drug labeling and packaging, requiring detailed product information to be clearly displayed.
In 2019, the Drug Act (No. 6) B.E. 2562 introduced key amendments, including a seven-year validity period for Marketing Authorizations (MAs) and requirements for new drug applications to include patent or petty patent documentation. The Act further strengthens pharmacovigilance by mandating post-marketing surveillance and the reporting of adverse drug reactions.
Good Manufacturing Practice (GMP) standards
Thailand has adopted international GMP standards, ensuring that pharmaceutical products meet rigorous quality benchmarks. The Thai FDA oversees GMP compliance, conducting regular inspections of both domestic and foreign manufacturing facilities. Foreign manufacturers are required to either obtain GMP certification from the Thai FDA or provide equivalent certification from recognized international authorities. Thailand became a member of the Pharmaceutical Inspection Co-operation Scheme (PIC/S) on August 1, 2016, reinforcing its commitment to international quality standards.
Clinical trial regulations
Clinical trials in Thailand are regulated under the guidelines of the International Council for Harmonisation (ICH) Good Clinical Practice (GCP). Sponsors must submit a clinical trial application to the Thai FDA and obtain approval before initiating any study. Clinical trial permits are valid for five years and can be renewed. New rules on drug importation for clinical trials, effective March 1, 2024, aim to enhance operational efficiency and protect human subjects. These regulations ensure that clinical research conducted in Thailand adheres to international standards, promoting trust in the results.
Import and distribution regulations
Pharmaceutical importation and distribution are tightly regulated. Companies must secure an import license from the Thai FDA, and a License per Invoice (LPI) is required for each shipment. Importers and distributors are obligated to comply with guidelines for the correct handling and storage of pharmaceutical products. The Thai FDA regularly inspects imported products at checkpoints to ensure compliance with national standards.
Labeling requirements
The Thai FDA enforces stringent labeling requirements to ensure that consumers and healthcare providers have access to critical product information. Labels must be written in Thai and include details such as the product name, active ingredients, dosage form, strength, usage instructions, warnings, and storage conditions. Imported pharmaceuticals must have Thai labels applied prior to entry into the country. Recent updates to labeling regulations, effective June 18, 2023, introduced readability standards, including minimum text heights, to improve accessibility.
Industry alignment with international standards
Thailand’s regulatory framework emphasizes alignment with international standards to facilitate global trade and investment. For instance, the adoption of ASEAN GMP standards and PIC/S membership demonstrates Thailand’s efforts to integrate with global quality systems. These measures not only enhance the credibility of Thai pharmaceutical products but also attract foreign investment in manufacturing and research.
Thailand’s healthcare system is supported by three main insurance schemes including Universal Health Coverage (UHC), Social Security Scheme (SSS) and Civil Servant Medical Benefit Scheme (CSMBS). As of 2025, these schemes cover around 99% of Thailand’s total population: For more detail on national healthcare insurance coverage, please visit our analysis in Thailand’s healthcare services industry report here
The number of clinical trials in Thailand has remained relatively stable, averaging 115-130 trials published annually. These trials are largely concentrated in Phase III, which accounts for approximately half of all registered studies. Despite its potential, the country’s clinical trial activity remains modest when compared to leading regional players such as South Korea and Singapore. While the workforce is skilled, competition from regional hubs with more established reputations for clinical trials, such as Singapore, creates additional challenges in attracting international sponsors. Lastly, the relatively limited domestic pharmaceutical research ecosystem reduces opportunities for homegrown trials, making the country overly dependent on foreign investment to drive clinical research activity
Clinical trials in Thailand are regulated by the Thai Food and Drug Administration (Thai FDA), which is responsible for overseeing all aspects of clinical research. This includes the approval of drug importation for research, permissions to produce drug samples for human trials, and the assessment of clinical trials across Phases I-IV. These trials cover a range of drugs, including new drugs, traditional drugs, unregistered drugs, and registered drugs being tested for new indications or doses. In an effort to streamline processes and ensure participant safety, the Thai FDA has introduced new regulations on drug importation for clinical studies, effective March 1, 2024. These updates aim to improve the efficiency of conducting clinical trials while maintaining rigorous human subject protections.
Thailand’s pharmaceutical pricing regime operates through a dual framework emphasizing cost containment in the public sector and market-driven dynamics in the private sector. Public hospitals primarily source medicines from the National List of Essential Drugs (NLED), which mandates that 80% of public hospital drug purchases come from this list. Prices for NLED-listed drugs are determined using a median pricing mechanism, calculated by surveying drug prices to establish a benchmark. However, tender prices in practice are often lower than the median reference prices due to competitive bidding and cost-control measures implemented by the government.
We expect that the regime could pose challenges for pharmaceutical companies, particularly for higher-priced drugs and multinational firms. The emphasis on affordability, combined with policies favoring locally produced generics, limits opportunities for foreign companies. The Government Procurement Organization (GPO), a state-owned entity, enjoys priority access in government-funded contracts, further strengthening the position of domestic producers. For drugs with a single supplier, the pricing committee often applies international reference pricing (IRP), benchmarking against prices in low-cost countries. While this approach aligns with cost-control objectives, it can be challenging for companies that set prices based on local economic and healthcare conditions.
In the private sector, pricing is determined by manufacturers and retailers, offering a market for higher-priced drugs not covered by public reimbursement. However, this segment remains relatively small as mass consumer groups rely on public healthcare. While the system ensures access to affordable medicines, it can limit the availability of innovative treatments and compress profit margins for producers in the public sector.
(a) Key incentives for the pharmaceutical industry under the BCG model include the following: 1. Tax Incentives: Companies in the BCG sectors can receive corporate income tax exemptions ranging from 3 to 10 years depending on the nature of their activities. For instance, businesses focusing on high-tech medical products or pharmaceuticals may qualify for longer exemptions based on their contribution to innovation and sustainability. There are significant reductions or exemptions from import duties on machinery, raw materials, and research and development materials essential for pharmaceutical production. This lowers the initial investment costs for companies entering the market. Companies can benefit from double deductions on expenses related to transportation, electricity, and water used in production processes. 2. Non-Tax Incentives: The BCG model allows 100% foreign ownership of companies in certain sectors, including pharmaceuticals. This encourages foreign investment by providing greater control over operations. Companies can hire foreign experts and skilled workers beyond the usual limits set by Thai labor laws. This is crucial for pharmaceutical companies that require specialized knowledge in drug development and production. Foreign investors are permitted to own land for business operations without the typical restrictions that apply to foreign entities. 3. Research and Development Support: The Board of Investment (BOI) provides merit-based incentives that include support for R&D initiatives. This is particularly important for pharmaceutical companies focusing on innovative drug development and biopharmaceuticals. The BCG model encourages collaboration with academic institutions and research organizations to foster innovation in drug development and healthcare solutions. 4. Area-Based Development: The BOI promotes investments in specific economic corridors like the Eastern Economic Corridor (EEC), which is designed to attract high-tech industries, including pharmaceuticals. Companies operating in these regions may receive additional benefits tailored to local development goals. 5. Capacity Building Initiatives: Talent Development Programs: The BCG model emphasizes building a skilled workforce through training programs focused on biotechnology, pharmaceuticals, and related fields. This includes enhancing capabilities in areas such as genomics, precision medicine, and clinical research.
For more detail on BCG model, please refer to Thailand BOI official document.
(b) Online pharmacies are not explicitly permitted under current Thai law as The Drug Act B.E. 2510 (1967), which governs pharmaceutical sales in Thailand, does not have specific provisions for online drug sales. The existing Drug Act requires that any person wishing to sell drugs must obtain a license from the licensing authorities and have a physical premise for selling or storing drugs. However, while not entirely same as online pharmacies, Thailand has been making progress in telepharmacy services given The Pharmacy Council of Thailand issued guidelines for telepharmacy services in 2020 (Announcement 56/2563).
(c) India’s 1970 Patents Act allowed for process patents but not product patents on pharmaceuticals, enabling Indian companies to reverse-engineer and produce generic versions of patented drugs. This approach plays a role in reducing drug prices and made India a major supplier of affordable medicines globally. In 2005, India amended its patent laws to comply with the TRIPS Agreement, reintroducing product patents on pharmaceuticals. However, India incorporated several key provisions to balance innovation protection with public health concerns:
Section 3(d) of the Patents Act prohibits patents on new forms of known substances unless they demonstrate enhanced efficacy, helping to prevent “evergreening” of patents.
Compulsory licensing provisions allow the government to grant licenses for generic production of patented drugs under certain circumstances, such as public health emergencies or when prices are deemed unreasonably high.
Pre-grant opposition procedures enable third parties to challenge patent applications before they are granted, potentially preventing unmerited patents. These provisions have allowed India to continue producing affordable generic versions of many essential medicines, particularly for HIV/AIDS, tuberculosis, and other diseases prevalent in developing countries. For instance, competition from Indian generics helped reduce the cost of HIV treatment from over $10,000 per patient per year in 2000 to around $100 today.
Thailand’s Food and Drug Administration (TFDA)
Ministry of Public Health of Thailand
Office of Industrial Economics
Department of Health Service Support
Bureau of Policy and Strategy
National Statistical Office of Thailand
Office of the National Economic and Social Development Council (NESDC)
United Nations (UN Common Database)
National Health Security Office (NHSO)
Asian Development Bank
World Bank
World Health Organization (WHO)
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