Foreign consumers become new engine of Thai retail as ‘Expat Economy’ gathers pace

Foreign consumers are emerging as a powerful new driver of Thailand’s retail sector, with average spending 1.5 times higher than that of Thai consumers as more foreigners choose the country not only for holidays, but also for long-term living, according to The 1 Insight.

The trend reflects the rise of what The 1 describes as the “Expat Economy”, in which long-stay foreign residents and frequent visitors are increasingly shaping demand across major retail categories, from beauty and fashion to groceries, children’s products, home improvement and health-related goods.

The findings also align with the 2024 Expat Insider data, which ranked Thailand among the world’s top 10 countries for foreigners to relocate to, reinforcing the country’s position as a preferred destination for international residents.

From tourism spending to lifestyle spending

The 1 Insight said foreign consumer spending in Thailand is no longer driven only by tourists. Instead, a growing share of demand is coming from people who live, work, have families, own homes or spend extended periods in the country.

This shift is significant for Thailand’s retail sector because long-stay foreigners tend to spend repeatedly on daily-life products rather than one-off tourist purchases. Their spending behaviour is closer to that of residents, but with a higher average value.

The 1 Insight divides foreign consumers into two main groups.

The first is Long-Stay Residents, or foreigners who live, work or have families in Thailand and spend continuously as part of their main lifestyle. This group is now the main growth driver of the Expat Economy, with both numbers and spending per person rising significantly.

The second is Frequent Visitors, who regularly stay and spend in Thailand for at least three months per year, across at least two quarters, and visit around three to four times a year. Although they do not primarily reside in Thailand, they remain important to the retail sector due to high spending per visit. However, their growth has started to stabilise.

The 1 data points to distinct ‘shopping fingerprints’

The 1 Insight, the data analytics and consumer insights unit of The 1, found that foreign consumers from different countries show clearly different spending patterns, or what it calls their own “shopping fingerprints”.

The 1 is Thailand’s largest digital lifestyle and loyalty platform, operated under Central Group. Its database covers more than 20 million members, or roughly one-third of Thailand’s population. The 1 Insight uses first-party data, transaction history and artificial intelligence to analyse retail trends and consumer behaviour across different demographic groups.

The 1 Insight also publishes trend reports and market deep-dives for Thailand’s retail, business and marketing sectors, covering areas such as generational spending patterns, lifestyle shifts, mindful consumption, active lifestyle trends and the Expat Economy.

The findings are linked to The 1 Expat, an exclusive loyalty programme for foreigners living in Thailand, integrated directly into The 1 app. The programme offers tailored shopping privileges, exclusive event access and reward points across Central Group brands, including Central, Robinson, Tops and Power Buy.

Chinese consumers lead in home and beauty spending

Chinese consumers stood out in the Home & DIY category, spending 2.2 times above the average, and in Beauty, where spending was 1.4 times above the average.

The data suggests that Chinese consumer demand is increasingly linked to long-term living in Thailand, including those who have residences in the country. At the same time, the rise of free independent travellers from China has also contributed to higher spending per person.

This indicates that Chinese spending is expanding beyond conventional tourism into lifestyle, home-related and personal-care categories.

Russian families drive demand for kids’ products and groceries

Russian consumers spent 1.4 times above the average in the Kids category and 1.2 times above the average in Grocery.

The pattern reflects the profile of long-stay Russian families, particularly in Phuket, where spending is focused more on household necessities, children’s products and daily consumption than on souvenirs.

The 1 Insight said Russian consumers also show repeated spending behaviour in Thailand, highlighting their role as a stable source of retail demand in family-oriented categories.

Japanese consumers focus on daily living in Sukhumvit

Japanese consumers spent 1.8 times above the average in Grocery, 1.7 times above the average in Health & Beauty, and 1.8 times above the average in Books & Stationery.

Most of their spending took place in the Sukhumvit area, a key residential and business district for Japanese expatriates in Bangkok.

Their spending pattern reflects demand for daily-use products, health-related goods and lifestyle essentials, rather than tourist-style shopping.

Myanmar and Lao consumers boost beauty and cross-border retail

Myanmar consumers recorded particularly strong spending in Beauty, at 2.7 times above the average, and in Fashion, at 1.5 times above the average.

The trend reflects the popularity of Thai Beauty, or T-Beauty, products among Myanmar consumers. Spending took place both in the border area of Mae Sot and at major shopping centres in Bangkok, with purchases made for personal use, gifts and resale or business opportunities in Myanmar.

Lao consumers also stood out in Beauty, spending 2 times above the average. Their spending in Kids and Sport was 1.7 times above the average.

The 1 Insight said this reflects regular cross-border household shopping, with Lao consumers travelling frequently to shopping centres in the Northeast to buy products for the whole family.

Malaysian shoppers show room for growth

Malaysian consumers spent 1.8 times above the average in Fashion, reflecting short-trip shopping behaviour focused on fashion products.

Key shopping destinations include Hat Yai and leading shopping centres in Bangkok. Although Malaysian spending per trip was close to that of Russian consumers, their travel frequency to Thailand remained lower.

This suggests an opportunity for Thailand’s retail sector to increase growth from Malaysian consumers by encouraging more frequent visits.

Thailand moves closer to becoming a regional lifestyle hub

The 1 Insight said the rise of the Expat Economy shows that Thailand’s foreign consumer market is becoming more complex and more valuable.

Rather than relying only on short-term tourist spending, the country is increasingly benefiting from foreigners who choose to live, work, raise families, travel frequently or spend long periods in Thailand.

This positions Thailand not only as a tourism destination, but also as a Global Lifestyle Hub for the region, supported by foreign consumers whose spending is becoming more regular, more diverse and more deeply connected to everyday life.