Thailand's retail industry outlook 2025-2030

Continued growth in e-commerce with next-phase momentum

Thailand’s e-commerce market continues to expand as more consumers integrate digital channels into their shopping routines. Established platforms such as Shopee and Lazada remain central to online retail, offering wide product selections and frequent promotional campaigns. Their operations have benefited from improved logistics, wider payment integration, and ongoing investment in mobile-first engagement tools.

New entrants from China such as Temu and Shein have begun to attract consumer interest, particularly in the fashion and low-cost goods segments. Their growth has been supported by aggressive marketing, large product assortments, and competitive pricing strategies. This has added a new layer of competition, particularly in categories where product differentiation is limited and consumer price sensitivity remains high.

In addition to price-led competition, livestreaming has become an increasingly important channel for influencing purchase decisions. TikTok Shop has been one of the early adopters of this format in Thailand, using short-form video content and influencer-driven promotions to engage users. Both Shopee and Lazada have responded by expanding their own livestreaming capabilities and working with content creators to promote featured items. This shift toward interactive commerce is becoming more visible, especially among younger demographics who are more likely to seek product information through social content rather than traditional listings.

The emergence of convenience store format as a strategic battleground

Convenience store formats are becoming increasingly central to retail strategy in Thailand, particularly as operators seek to expand reach and enhance consumer touchpoints across both urban and non-urban areas. With a growing demand for high-frequency and proximity-based retail, the format offers an efficient way to serve everyday needs while supporting last-mile fulfillment for both offline and online channels.

7-Eleven, under CP All, remains the dominant player with the largest store network and consistent expansion across provinces. Recent development has focused on larger standalone stores, which allow for broader assortments, parking access, and additional services such as parcel handling and food counters. These locations aim to serve a wider set of needs in a single visit, particularly in areas where traditional supermarkets are less accessible. The company also continues to invest in digital engagement, offering app-based ordering and integrating delivery and affiliate sales initiatives.

Tops Daily has concentrated its expansion on community-based locations, with a focus on curated assortments and imported product selections. Its positioning targets mass and upper-middle consumers seeking quality, convenience, and value. Store rollout is supported by omnichannel efforts, including personal shopper services and digital marketing engagement.

CJ Express, owned by Carabao Group, has pursued a different positioning strategy by focusing on the lower-income and grassroots consumer segments. Its network growth is accompanied by a strong emphasis on value-for-money offerings, supported by a wide selection of second- and third-tier brands. The company is expanding rapidly in provincial areas and tourist zones, with store formats adjusted to suit different operating conditions and investment scales. CJ’s ability to tailor store formats and product ranges to local preferences has helped it gain share in a segment that is often underserved by larger modern trade operators.

As competition in the convenience format intensifies, store design, assortment strategy, and geographic targeting will remain key factors in defining competitive advantage. Retailers that are able to combine proximity access with localized value propositions and digital integration are likely to strengthen their presence across diverse consumer segments.

Strategic network optimization and profit focus

Retail operators in Thailand have begun to place stronger emphasis on improving store-level performance. Rather than expanding footprint indiscriminately, many are focusing on optimizing existing assets through renovation, relocation, and closure of low-performing outlets. This shift comes in response to rising input costs, including labor and logistics, which have made operating efficiency more important to overall profitability. Retailers are also adopting technology-led solutions to manage costs and streamline operations, such as digital inventory systems, automated checkout, and more efficient lighting and refrigeration in physical stores. These strategies have become increasingly necessary in urban locations where cost structures are higher and competition is more intense.

Retail experiences enhanced by cultural relevance

Retail operators are increasingly integrating local culture and entertainment into their physical environments to drive engagement. High-profile events, performances, and celebrity appearances are now part of mainstream marketing strategies, especially in flagship malls and tourist-oriented venues. These efforts are supported by collaborations between retail brands and government agencies that promote cultural soft power as part of tourism and economic development agendas. For example, shopping centers have hosted large-scale events tied to national holidays, music performances, and art showcases to attract both local and international visitors. These activities help build brand association and extend consumer dwell time, especially in premium retail zones.

Demand peaks driven by seasonal retail events

Seasonal events continue to play a central role in shaping sales performance across both online and offline retail channels. Campaigns aligned with national celebrations, school terms, and year-end holidays consistently lead to concentrated spending across a wide range of categories. Retailers actively prepare for these cycles through targeted promotions, bundled offers, and expanded advertising across digital platforms. Loyalty programs and e-commerce activations are often used to deepen engagement during these peak periods. Operators that can coordinate physical and digital activities in a cohesive way are generally better positioned to capture higher wallet share during these retail windows.

Growing emphasis on health, wellness, and functional Consumption

Consumer preferences are shifting toward health-centric products, driven by broader awareness of personal wellness, food safety, and preventative care. This trend is visible across categories including food, beverage, supplements, and personal care. Products perceived as natural, low in additives, or functionally beneficial are gaining traction, particularly among urban households and ageing consumers. The concept of “food as medicine” is also influencing retail assortments, with retailers increasing shelf space for organic, fortified, and low-sugar options. Health and beauty retailers, pharmacies, and grocery chains are responding by widening product variety and introducing private labels targeted at health-conscious segments.

Sustainability as part of a core to retail strategy

Sustainability has become a more visible consideration among both retailers and consumers. While cost remains a primary purchase driver, growing environmental awareness is influencing consumer expectations, especially in urban and higher-income groups. Major retail operators are responding with initiatives focused on reducing plastic use, supporting recycling programs, and sourcing from local or ethical suppliers. Circular economy models, such as trade-in campaigns and upcycled product collections, are increasingly featured in marketing efforts. These actions also align with broader environmental policies and international ESG standards, which are gaining regulatory and reputational importance for listed and multinational retailers operating in Thailand.