Nowadays, consumers around the world including people in Thailand become more conscious and proactive in their health. They pay more attention to try herbal products that include herbal medicine, herbal supplement, and herbal cosmetics. In addition, the Thai government is trying to promote the alternative treatments such as the use of herbal medicine and supplement in hospitals to cure people’s diseases. This policy promotion is expected to arouse the demand for Thai herbal medicine, which will consequently increase the demand for imported medicine from abroad.
The more popularity of herbal products supported by the changes in consumers’ perceptions highlights the higher demand for herbal products not only in domestic market but also global market. According to the Thai Herbal Industry Club, 70 percent of herbal products in Thailand are for domestic consumption, whereas the rest 30 percent is for export. In the total value of exported herbal products 80 percent accounts from herbal cosmetics.
Thailand’s market of cosmetics such as beauty, make-up and skin-care products grows significantly. This potential growth comes not only from the change in consumers’ perception towards herbal products but also the knowledge and the health awareness in people which is creating the superb market demands and changing the market trends. The higher demand for herbal products opens a wider opportunity for herbal exporting countries including Thailand and India.
There is a distinctive opportunity for Indian firms to not only export herbal cosmetics to the world market but also to export Indian herb to Thailand either for direct
consumption or use as inputs for herbal cosmetics produced in Thailand. Thailand. In addition, it is worth mention that there is also a wide opportunity for Indian firms to export more herb used in pharmacy and perfumery to Thailand since there is no tariff on these products completely after the year 2013 based on Thailand’s Schedule of Tariff Commitment shown in the next section.