What: Thailand is rapidly becoming a key player in the global luxury retail market, driven by major developments like the USD 3.2 billion One Bangkok project and a booming domestic demand for high-end goods.

Why it is important: Thailand's strategic location, growing ultra-high-net-worth population, and ambitious tourism goals are positioning the country as a leading hub for luxury consumption in Southeast Asia, attracting both international brands and affluent shoppers.

Thailand is emerging as a significant luxury retail destination, with developments like the One Bangkok project, which features Thailand's first high-street-style luxury boulevard, and expansions in existing malls such as Siam Paragon and IconSiam. The country's luxury market is expected to grow at a compound annual growth rate (CAGR) of 9 percent, reaching USD 3.6 billion by 2029. While international tourists play a crucial role in driving sales, there has been notable growth in domestic demand from affluent Thais and expatriates. Additionally, Thailand’s ultra-high-net-worth individual (UHNWI) population is projected to increase by 14.7 percent by 2028. The rise of Thai celebrities on the global stage is also boosting the country’s appeal as a luxury shopping destination.

Thailand’s rise as a luxury retail powerhouse