Business Insights into the Thai Cannabis Market

Thailand became the first country in Asia to decriminalise cannabis by removing the plant from its list of narcotics in June 2022. At this point, the Thai government endorsed the cultivation of cannabis; in private households, for medical purposes, and as an ingredient in any food and beverages. This followed medical legalisation in 2019. The government continues to develop the idea of a ‘sandbox’ project of trial legalisation of non-medical cannabis in a regionally limited and time limited manner. Prohibition Partners projects that Thailand will see sales of US$1 million in 2022, and that this could grow to US$24 million by 2026. This is considerably lower than the figures being reported in other outlets and from government sources. While Prohibition Partners believes that reported estimates are too high, it is important to note that our figures account only for domestic medical and adult-use cannabis sales and not for derivative products like seeds nor for the export market. There are pockets of opportunities for businesses if companies educate themselves on Thai law and keep up with the changing regulations. In this exclusive report, we uncover the cannabis landscape in Thailand, particularly regarding businesses and companies that are racing to capture the market for domestic sales which could reach 900 million baht in five years, and the export opportunities that likely far exceed this. We also speak to experts in the region who weight in on various aspects of this evolving market.

• · Thailand became the first country in Asia to decriminalise cannabis by removing the plant from its list of narcotics in June 2022.
• · Whilst Thailand was the pioneer in paving the path towards cannabis legalisation, there are several key factors to consider regarding the country’s legal infrastructure in order to fully support cannabis cultivation, businesses and the medicalindustry at large.
• · Prohibition Partners projects that Thailand will see sales of US$1 million in 2022, and that this could grow to US$24 million by 2026.
• · Thailand’s Public Health Minister and Deputy Prime Minister, Anutin Charnvirakul, has been instrumental in driving cannabis decriminalisation, such that it has become central to his political party, the Bhumjaithai Party.
• · Many organisations formed by medical professionals, including a petition of 800 signatories from doctors in Thailand’s Ramathibodi Hospital, have called for the suspension of cannabis decriminalisation, citing a lack of adequate measures being in place to prevent younger people from smoking recreationally.
• · On 14 September 2022, the House of Representatives voted to quash the Cannabis Bill put forward by the Bhumjaithai Party, led by the Minister of Health, Anutin Charnvirakul, in a vote that saw 198 votes against the bill and 136 for it.
• · Almost 1.5 million prescriptions for medical cannabis have been written for patients to date in Thailand, with a large uptick having occurred in 2020.
• · For those who are setting up a commercial cannabis business in Thailand, it is crucial to know that these owners must be Thai nationals of 20 years of age and above.
• · For those who are interested in capturing the commercial opportunities in Thailand’s cannabis industry, it’s crucial to understand the intricate and ever-changing laws that govern the industry. To operate a cannabis business in Thailand, there are specific rules around domestic and foreign ownership.