Luxury Goods in Thailand

Luxury goods in 2025: The big picture

In 2025, luxury goods in Thailand was moderately constrained by slower-than-expected tourism recovery, due to safety concerns following the earthquake in Myanmar which had repercussions in Bangkok, along with competition in the region from Japan and South Korea, with total tourist arrivals and spending falling short of review period levels. Luxury leather bags, luxury timepieces, and luxury fine jewellery, which traditionally rely on affluent international buyers for peak sales, have faced softer demand as Chinese tourists — a historically high-spending segment — remain slow to return, and visiting travellers generally exhibit more cautious spending behaviour due to a strong Thai baht. High-touch categories like bespoke jewellery, collectible timepieces, and artisanal stationery have been partially insulated by domestic affluent consumers and gifting-driven purchases.

2025 key trends

Sustainability remained a defining trend shaping the luxury goods landscape in Thailand in 2025. Brands across categories — from premium cars to luxury hotels — intensified their commitment to eco-friendly practices. Luxury automotive companies expanded their electric vehicle portfolios in response to rising demand for sustainable transport. Meanwhile, luxury hotel operators prioritised green initiatives such as energy-efficient infrastructure and the use of locally sourced organic products, aligning with the values of environmentally-conscious travellers.

Competitive landscape

The competitive landscape of luxury goods in Thailand continued to be led by key international players, particularly in premium and luxury cars, and personal luxury. In 2024, BMW Mfg (Thailand) Co Ltd retained its position as overall leader, driven by a strategic focus on expanding its fully electric vehicle portfolio to align with the increasing consumer demand for sustainable mobility solutions. Mercedes-Benz (Thailand) Ltd maintained its second position by enhancing its “Retail of the Future” business model, which centralised pricing and streamlined the customer experience across all platforms. These innovations helped Mercedes-Benz retain customer loyalty and adapt to evolving consumer purchasing behaviours.

Retail developments

Store-based retail remains the dominant distribution channel for luxury goods in Thailand, driven by affluent consumers’ preference for personalised service and in-depth product knowledge. A notable shift from duty-free airport shopping to local retail has bolstered the prominence of flagship stores and luxury precincts such as Siam Paragon, ICONSIAM, and Central Embassy. These destinations offer immersive shopping experiences that encourage higher spending. In response, luxury brands have enhanced their in-store environments by offering multilingual staff, integrating local payment platforms such as Alipay and WeChat Pay, and introducing exclusive product lines and VIP services tailored to international tourists. Department stores and specialist retailers continue to play a vital role by showcasing a wide array of high-end brands across categories such as designer apparel, luxury leather goods, and fine jewellery. Locations like Bangkok’s Central Chidlom remain key hubs for luxury and beauty, attracting both local and international shoppers. Meanwhile, the expansion of pop-up stores and kiosks has gained momentum, offering exclusive, limited-time experiences that complement permanent retail spaces. These temporary formats prove especially effective in generating social media buzz and deepening consumer engagement with new collections.

What next for luxury goods?

Luxury goods in Thailand is projected to record an 8% current value CAGR (2025 constant value CAGR of 6%) to reach THB790 billion in 2030. This performance will be underpinned by an expanding affluent consumer base and evolving market dynamics. Key drivers include the anticipated rise in the number of high-net-worth individuals (HNWIs) and ultra-high net worth individuals (UHNWIs) in Thailand, which is expected to elevate demand across luxury goods. This demographic shift, combined with broader economic factors and policy support encouraging wealth generation, will enhance consumers’ purchasing power and propensity to invest in high-end products, particularly in established categories such as luxury timepieces, luxury jewellery, and luxury fashion.