There is often a saying that within every crisis lies an opportunity for those who can see it and have access to information about the turning points. While many businesses are being affected by the COVID-19 pandemic, there are still several sectors that are ramping up production to meet the increasing demand from the public. Today, TerraBKK will summarize 6 businesses whose products are gaining high popularity in response to the needs of the public during the COVID-19 outbreak.

 

1. Medical Supplies and Pharmaceuticals

         During the pandemic, medical supplies and pharmaceuticals are among the top priorities for treatment. Data shows that the pharmaceutical and medical supplies industry in Thailand has a continuous growth rate of 6.2% per year, with a total value exceeding 177 billion baht. This year, it is expected that the value of the pharmaceutical industry will double, with over 95% of the estimated total drug production being used domestically, divided into 60% for public hospitals, 20% for private hospitals, and 20% for pharmacies.

Herbal medicines, such as “Andrographis paniculata,” known for boosting immunity, anti-inflammatory properties, and fighting respiratory infection viruses, have also garnered public interest. The overall market value for herbal products and natural extracts is expected to exceed 20 billion baht this year, up from 18 billion baht in 2019.

2. Hygiene and Sanitation Products

        Products such as face masks, hand sanitizers, disinfectant soaps, and various cleaning agents have rapidly become popular among the public. Particularly, face masks are in such high demand that production cannot keep up. Additionally, there has been a surge in orders from Chinese customers in areas where production is still halted. Investors have thus sent orders to be produced in Thailand instead. During the Songkran festival, some mask production facilities in Thailand remained operational and even increased wages for employees during the holiday.

3. Life Insurance Business

          It must be acknowledged that the COVID-19 pandemic has significantly impacted the sales channels of life insurance businesses. However, there are always opportunities in crises, as insurance companies have rushed to launch new products, “COVID-19 insurance,” to meet customer demands promptly. Particularly, the “lump-sum payment upon diagnosis” type of COVID-19 insurance has seen a rush of purchases, causing websites to crash because the premiums are only a few hundred baht, but they provide coverage of hundreds of thousands immediately upon diagnosis. Some companies have reported more than 100 customers purchasing per hour, leading to sales exceeding targets with hundreds of thousands of policies sold. With the COVID-19 situation still uncertain, insurance businesses are accelerating the design of new policies that emphasize high medical coverage, increasing premiums, and tightening the conditions for lump-sum payments.

4. Food Delivery & Online Shopping Business

        Another business benefiting from the situation is food delivery, as people avoid going out in public and spend more time at home. Food delivery services through applications have effectively met consumer needs during this time. Currently, there are 4-5 popular service providers in the market. Over the past 5 years, this business has seen an average growth rate of 10% per year, with a continuous upward trend, outpacing the restaurant business, which only grows at 3-4% per year. This is part of the growth of e-commerce in Thailand, valued at 748 billion baht, making it the number one in the ASEAN region according to the Digital Economy and Society Council of Thailand.

          Similarly, online shopping has seen a surge. Data from JD.com indicates that during the COVID-19 outbreak in China, orders for rice and dairy products increased by over 154% compared to the same period last year. The same trend is observed for seafood and beef products. In Thailand, the online supermarket market accounts for about 2-3% of total sales, primarily among younger individuals living alone in condos and new mothers balancing work and family responsibilities.

5. Plastic and Food Packaging Production Business

          Clean and safe packaging has become increasingly important during the COVID-19 pandemic, especially for products related to hygiene, including face masks, medical equipment, items that come into direct contact with patients, medicines, fresh food, ready-to-eat meals, and dry food. This has led to a surge in demand for food packaging production in the country, with production orders increasing more than double. The production, packaging, and transportation processes require high-quality, sterile plastic to ensure consumers receive the safest products possible.

6. Digital Content Business

      It is believed that most Thais are worried about the COVID-19 outbreak. Watching news about the pandemic can increase stress levels, affecting daily life and causing anxiety when using public transportation. However, many people manage their stress well by seeking online activities such as online games, exercising through applications, and medical consultation services, alongside watching various content such as movies, shows, documentaries, and dramas through online media. This has made this business another avenue for providing entertainment and alleviating stress for the public.

From the 6 prominent businesses mentioned above during the COVID-19 outbreak, let’s explore which business sectors align with the industries discussed in terms of investment opportunities in the “Stock Exchange of Thailand.” (Data as of March 19, 2020)

  1. Plastic food packaging has about 7 companies with a total market capitalization of approximately 56 billion baht.
  2. Medical supplies has about 25 companies with a total market capitalization of approximately 1.2 trillion baht.
  3. Food products, food delivery, ready-to-eat meals, canned food, and instant noodles have about 11 companies with a total market capitalization of approximately 950 billion baht.
  4. Insurance has about 17 companies with a total market capitalization of approximately 240 billion baht.
  5. Beverages and water resource management has about 12 companies with a total market capitalization of approximately 520 billion baht.
  6. Hygiene and sanitation-related products has about 2 companies with a total market capitalization of approximately 68 billion baht.

        It is clear that during times of volatility in the investment world, while some industries may seem to benefit from the current situation, not every company within those sectors will necessarily improve. Therefore, investors need to thoroughly study and analyze businesses before making investment decisions.

"Doing business in uncertain circumstances is not easy and will become a crucial turning point for entrepreneurs and business owners to rethink their management strategies, especially in the real estate sector, which is currently directly affected. They must revisit their plans to accommodate emergency situations in the future and create products in new locations targeting new customer segments in industries benefiting from the COVID-19 virus at affordable prices to cater to various market segments, not just focusing on customers in Bangkok, the surrounding areas, and major cities."