The value of the local e-commerce segment this year is expected to reach 700 billion baht, driven by higher business registrations with the Business Development Department.
Auramon Supthaweethum, director-general of the department, said e-commerce business continued to grow in the first quarter, driven by consumers embracing technological solutions in their daily life, especially to facilitate retail purchases.
According to a DataReportal report, there were 63.2 million internet users in Thailand in January 2024, an 88% penetration rate.
Thais continue to spend more time online, with an average of 7 hours and 58 minutes per day recorded.
Social media is the most popular digital activity, followed by communication and online purchases.
The most used social media platforms by Thais are Facebook, Line and TikTok.
The 2023 survey found 66.9% of Thai internet users purchased a product or service online as part of their weekly e-commerce activities.
E-commerce business registrations have grown significantly over the past six years (2018-2023), both in the number of establishments and the value of registered capital.
In 2018, there were 310 establishments with registered capital of 545 million baht.
This year 7,393 e-commerce businesses have registered with registered capital of 43.7 billion baht, up from 1,713 businesses with capital of 2.27 billion baht in 2023, according to the Business Development Department.
The majority are in Bangkok (35.5%), with some in Nonthaburi (7.22%), Samut Prakan (5.22%), Pathum Thani (5.22%) and Chiang Mai (4.31%), mostly concentrated among small and medium-sized enterprises.
Expansion in the e-commerce industry has created demand for substantial changes in Thailand's supply chain and logistics operations.
Several courier companies have launched cost-effective and high-quality logistics services, emphasising last-mile delivery and reporting growth of 4.50%, according to the department.
E-commerce businesses are likely to demand more warehouse space for express delivery services as the sector's significance continues to grow, said Mrs Auramon. Many companies have established central warehouses, along with smaller drop-off and pickup points across the country, to cope with the rise in demand.
E-commerce and online retail have increased demand for sustainable packaging solutions, growing 9.51%, she said. With the increased volume of shipped products, companies want to focus on minimising packaging waste, opting for recycled materials and utilising packaging designs that reduce excess materials, said Mrs Auramon.
She said digital advertising grew 10% in terms of registrations, a segment that uses data analytics to analyse consumer behaviour in social media.
Thailand's e-commerce market value is expected to reach nearly 700 billion baht in 2024, rising to 750 billion next year and up from 634 billion in 2023, said Mrs Auramon.