Thailand Targets Wellness and Medical Sector for Economic Growth

Thailand is positioning itself to capitalize on the burgeoning medical and wellness sector as a key driver of economic growth, amidst a backdrop of domestic economic challenges and global uncertainties. With a strategic focus on medical tourism, manufacturing, and elderly care solutions, the country aims to bolster its economy through industries projected to see significant annual expansion.

A Strategic Hub for Health and Wellness

Thailand has emerged as a pivotal player in Southeast Asia’s health and wellness landscape, supported by robust government initiatives, a burgeoning local industry, and increasing international partnerships. According to See Lay Eng, portfolio director for Medicare Asia at Messe Düsseldorf Asia, the nation is leveraging its strengths to become a strategic location for medical advancements. This aligns with the broader trend in the ASEAN region, where Thailand, alongside Malaysia and Singapore, leads in medical and wellness tourism by offering affordable treatments, internationally recognized standards, and holistic care approaches.

The medical tourism market in Thailand alone was valued at over US$433 million in 2024, with a projected compound annual growth rate of 15%. If this trajectory holds, the market could reach a value of approximately US$3 billion by 2035. This growth is underpinned by Thailand’s reputation for quality healthcare at competitive prices, attracting patients from across the globe seeking treatments ranging from cosmetic surgery to complex medical procedures.

Complementing its clinical strengths, Thailand is also rapidly emerging as a global hub for wellness tourism. Revenue from wellness-focused travel surged from US$5.6 billion in 2022 to over US$7.2 billion in 2023—a 28.4% year-on-year increase. This reflects a growing global demand for personalized, lifestyle-based health experiences that integrate modern diagnostics with traditional therapies. Facilities such as the BDMS Wellness Clinic illustrate the sector’s evolution, offering preventive care programs aimed at longevity, immunity, and mental wellness—all delivered alongside the country’s cultural traditions of healing, mindfulness, and holistic care.

Thailand’s ability to blend high-tech medical infrastructure with authentic wellness experiences has positioned it uniquely in a market that is increasingly seeking proactive health solutions over reactive treatments. As global wellness spending trends toward US$8.9 trillion by 2028, Thailand’s strategic positioning aligns well with this growing shift.

Innovation, Investment, and Industry Development

Domestically, the medical device market is forecasted to grow at an annual rate of 7%, while exports are expected to rise by 7.5%. Thailand’s role as a leading exporter within ASEAN is evident in key areas such as consumables, diagnostic equipment, and rehabilitation devices. These figures reflect a promising outlook for the sector, which is poised to contribute significantly to the national economy with an average annual market expansion of 5.5–7% domestically and export growth of 6.5–7.5%.

However, achieving long-term competitiveness requires addressing systemic barriers in innovation. Thailand still imports a significant proportion of its medical devices and technologies, spending over 60 billion Thai Baht (~US$1.7 billion) annually. According to Termsak Sirikirin, director of the National Metal and Materials Technology Centre, this dependency stems from chronic underinvestment in research and development (R&D) and weak support systems for commercialization of local innovations.

In response, the National Innovation Agency (NIA) is prioritizing funding for startups and SMEs in the healthcare space. Krithpaka Boonfueng, executive director at NIA, noted that 70% of financial assistance is allocated to early-stage companies, aiming to nurture homegrown talent and build capacity for innovation. Workforce development is also a focus area, particularly in wellness-aligned fields such as integrative medicine, patient-centric service design, and technology-assisted care delivery.

Thailand is also preparing for a major showcase at the 2025 Medical Fair Thailand, set to begin on September 10 at the Bangkok International Trade & Exhibition Centre. This international trade event will spotlight cutting-edge technologies, promote business partnerships, and further underscore the country’s commitment to advancing its health and wellness sectors.

National Strategy and Global Positioning

Thailand’s expansion into wellness is more than economic diversification—it is an expression of soft power. The Thai government has formally designated wellness tourism as one of 14 national strategic sectors. This move positions the industry not just as a revenue generator, but as part of a broader vision for cultural and economic diplomacy, where health, tradition, and innovation intersect.

The country’s aging population provides both a challenge and an opportunity. With over 25% of the population projected to be over 60 by 2035, there is domestic demand for high-quality elderly care solutions. At the same time, this demographic trend mirrors global patterns, opening the door for Thailand to export its wellness and eldercare models across Asia and beyond. The dual benefit—addressing local needs while building international competitiveness—has become central to Thailand’s strategy.

Thailand’s offering stands out from regional peers due to its unique integration of heritage-based healing and advanced healthcare. From genomic health screenings to Thai herbal therapies, the country offers visitors a spectrum of care that balances science and tradition—making it an increasingly attractive destination for health-conscious travelers across income levels and continents.

Challenges, Sustainability, and the Road Ahead

Despite strong growth potential, the road forward is not without friction. Structural issues—particularly around R&D, regulatory frameworks, and access to capital for local innovators—remain significant. Sustaining the current momentum will require continued public–private collaboration, international knowledge exchange, and policy environments that reward long-term investment in innovation.

Thailand is making notable progress in these areas. Training programs aimed at raising the quality of care delivery, improving cross-cultural communication, and aligning services with international accreditation standards are now underway. These efforts are essential to ensure the sector’s growth is inclusive and benefits a wide range of stakeholders—from medical device manufacturers and wellness practitioners to rural healthcare workers and startups.

The wellness and medical tourism boom also carries with it a broader implication: the need for balance between global ambitions and domestic needs. Thailand must ensure that as it becomes a premier destination for foreign visitors, it also maintains affordability and access for its own population.

With the right partnerships, regulatory clarity, and focus on sustainability, Thailand’s integrated health and wellness sector could become one of the most resilient and future-ready pillars of its economy—redefining not only how the country grows, but how it heals.