The cosmetic surgery and aesthetics sector in Thailand is projected to post minimal growth next year due to weakened spending among locals and an increasingly competitive market, according to Meko International Hospital.
Dr Wararat Sirikudta, chief executive of Meko International Hospital, said the industry might record slim growth next year, affected by the diminished purchasing power of Thais.
She said businesses targeting price-sensitive customers could face more challenges due to decreased customer purchasing power in a challenging economic environment, while new entrants into the market are expected to continue.
The number of clinics offering non-surgical cosmetic treatments in Bangkok is approaching saturation point, said Dr Wararat.
In a strategic move, she announced the merger of Meko Clinic with Someko Clinic to establish Meko International Hospital, targeting both Thai and foreign patients.
Dr Wararat said the company predicts business opportunities in overseas markets, particularly from customers travelling to Thailand for services from Indonesia, China, Malaysia, Cambodia, Laos, Myanmar and Vietnam.
The company is focusing on customers from Indonesia and China as both countries have large populations and their economies are growing, while other Southeast Asian nations record gradual growth.
The tension between Thailand and Cambodia also hurts the industry, she said, as the number of customers from Cambodia declined.
The company aims to increase its foreign customer base to 25% of customers by 2026, up from the current 20%.
In September, Kasikorn Research Center (K-Research) predicted the cosmetic surgery and aesthetics industry would be worth 75.2 billion baht this year, a 1.6% year-on-year growth.
For 2026, the report projected an industry value of 76 billion baht, up 1% year-on-year. The slight uptick reflects the ongoing competitive environment in the industry.
As Thailand transitions to an aged society, the potential market for anti-ageing surgery or aesthetic procedures is expected to expand, providing further opportunities for growth in the industry, according to the K-Research report.
The report also anticipated a growth in medical tourism, suggesting that the cosmetic surgery sector could benefit from Asian customers seeking services in Thailand.
K-Research warned intense market competition in the market poses a challenge to this industry, which is expected to see around 470 newcomers on average each year.