Citi Research has issued a more optimistic outlook for Thailand’s consumer sector in light of the 2026 general election results, viewing the outcome as a sign of increased stability for the formation of a new coalition government.
According to Citi’s latest note, improved political stability bodes well for the smooth rollout and execution of long-term policies, a departure from the policy volatility experienced between 2023 and 2025.
The research highlights expectations that new government-backed consumer policies and the anticipated second phase of the co-payment campaign in 2026 will further stimulate rural mass consumption. Following a subdued first quarter—attributed to the absence of supporting stimulus campaigns—Citi forecasts a pick-up in the country’s consumption growth as the base effect eases in the second quarter of 2026.
Within the sector, Citi continues to prefer CP All (CPALL) and Osotspa (OSP) for their significant exposure to upcountry consumers and well-developed store and distribution networks. Additionally, current valuations for CPALL and OSP stand at approximately 14 times price/earnings, around 1.5 standard deviations below their historical averages, suggesting attractive entry points for investors seeking exposure to a domestic consumption recovery.
