Cannabis market in Thailand
Thailand’s economy and tourism industry have flourished since the legalization of recreational cannabis. While investing in this sector may appear risky to test the water at first glance, a thorough understanding of the industry may reveal opportunities. Key factors to consider include the legal framework, the diverse range of cannabis products available, and the cultural significance of cannabis in Thai society. By examining these aspects, potential investors can make informed decisions in this rapidly growing market.
This comprehensive guide provides everything you need to know whether you’re looking for opportunities to open a cannabis shop in Thailand or you’re just a marijuana enthusiast, here is a detailed breakdown of Thailand’s cannabis market.
Thai cannabis market
Thailand became the first country in Southeast Asian country to legalise cannabis use back in 2018. Ever since then a new market has opened up for locals and entrepreneurs, initially focusing on medical use a year later following the decriminalisation and recreational use of marijuana, boosting the market even more.
How big is Thailand’s cannabis market
As of 2023, the Thai cannabis market was estimated to be worth approximately 42 billion THB, with projections suggesting significant growth in the coming years. As of now, Thailand has approximately 50,000 medical cannabis patients.
With an estimated 1.2 million recreational users, Thailand’s cannabis market is at an all-time high right now. Additionally, this allows hemp farmers to openly cultivate hemp for multiple purposes reasons like clothing etc.
Cultivation
As for Thailand’s cannabis cultivation sector, it has seen significant growth since legalisation, with over 5,000 licensed cultivators operating as of 2023. These growers control a total cultivation area of approximately 15,000 hectares, producing an annual capacity of around 100,000 kg or about 220,462 lbs of marijuana.
The industry has also created about 30,000 jobs and tax revenue is projected to get 7 billion baht per year, highlighting the economic impact. Looking ahead, Thailand aims to capitalize on its cultivation capabilities, with projections suggesting export potential reaching 24.5 billion THB by 2025. However, there are some challenges when it comes to investing in the weed industry in Thailand. Challenges like regulatory compliance costs are estimated to be 15-20% of operational challenges.
How much cannabis is legal to possess
As of early 2024, home cultivation is permitted without restrictions, however, growers are required to register their plants with the government through a mobile application or website. If the weed product contains more than 0.2% THC by weight. Products exceeding this THC threshold are classified as controlled herbs and subject to stricter regulation. Despite these relaxed policies, specific restrictions remain in place to ensure public safety and responsible use. Smoking cannabis in public spaces is totally prohibited and can result in fines or imprisonment.
For those interested in commercial pot operations, specific licenses are required, with allowable quantities varying based on the type of license obtained. It’s important to note that while possession has been decriminalised, the recreational use of marijuana still occupies a legal grey area. Given the weird nature of marijuana regulations in Thailand, it’s advised for residents and visitors to stay updated about the latest pieces of information from official sources to ensure compliance with current laws.
Who is the leader in Thailand’s cannabis industry
In the midst of the rapid evolution of the cannabis industry one company that stands out as a main player is the Thai Cannabis Corporation (TCC). As the key player TCC in Thailand’s cannabis industry focuses on sustainable practices and medical cannabis distribution. As the market continues to grow, TCC establishes operations and commitment to social responsibility in the evolving landscape of marijuana in Thailand.
The industry is expected to expand significantly, driven by increasing awareness of cannabis’s therapeutic benefits and the regulatory framework supporting its use. However, things are still in the grey area after the announcement of the criminalisation of cannabis by the end of 2024. Some honourable mentions include. Some honourable mentions are :
Amber Farm Co., Ltd.
Amber Farm is another major player in the Thai cannabis market, known for its innovative planting methods and high-quality cannabis strains. This farm utilizes advanced breeding techniques and focuses on producing premium marijuana suitable for both medical and recreational use.
JCK Cannabiz Industrial Park
Although not a single farm, the JCK Cannabiz Industrial Park is noteworthy as it aims to create a full cannabis ecosystem in Thailand. This industrial park is designed to support marijuana cultivation, processing, and research.
Future of Cannabis in Thailand
The future of cannabis in Thailand will likely be shaped by ongoing regulatory changes aimed at balancing public health concerns with economic opportunities. The government’s focus on restricting recreational use while promoting medical applications suggests a dual approach to cannabis policy.
An increased opportunity for investment in cannabis research and development, especially in creating pharmaceutical-grade products will tend to increase. Collaborations between local and international stakeholders could enhance Thailand’s position in the global cannabis market.
The public’s attitude towards cannabis is evolving, with a substantial portion of the population showing interest in marijuana products. However, the government must navigate the complexities of public opinion and health concerns as it implements new regulations.
International market
As of now a total of 3 countries have legalised and decriminalised the recreational use of weed, in America only some specific states are allowed to have the product.
The largest cannabis markets in the world are primarily found in North America, with the United States leading the way, followed by Canada. However, Thailand has also emerged as a significant player in the global cannabis industry since decriminalizing the substance in June 2022. The Thai cannabis market is projected to grow to 21 billion baht by 2024. According to a report by Grand View Research, the Thailand legal cannabis market size was estimated at USD 1.02 billion in 2023 and is expected to grow at a CAGR of 32.5% from 2024 to 2030
However, the future of Thailand’s cannabis market is uncertain, as the government is considering tightening regulations around the substance, particularly concerning recreational use. A proposed bill aims to restrict cannabis primarily for medical purposes, addressing concerns about unlicensed shops.
Countries that aimed to legalise it
After observing that the legality of cannabis could potentially boost the economy, some developed countries are also considering it. Some of the countries might include:
Germany
Recently approved plans to legalize the possession of up to 25 grams of cannabis for personal use and growing up to three plants. This legislation still needs to be voted on by lawmakers. But Germans see this as a stepping stone for a new cannabis market in Germany.
Malta
Currently has the most tolerant laws in the EU concerning the cultivation, consumption and possession of cannabis. Adults may carry up to 7 grams of cannabis and grow up to four plants at home. Officials are still considering loosening the rules and regulations.
Luxembourg and South Africa
Has decriminalized private consumption and tolerated the cultivation of four cannabis plants as of 2022. South Africa’s legalization of cannabis for private use in 2022 marked a significant step for Africa. It’s likely that other countries on the continent will consider similar reforms.
What countries are in the Cannabis Industry
The cannabis industry is rapidly expanding across the globe, with several countries leading the way in legalization and cultivation. The United States holds the largest cannabis market, valued at approximately $30 billion in 2022, as many states have legalized marijuana for both medical and recreational use. Following closely is Canada, which became the first country to fully legalize recreational cannabis in October 2018,
In Europe, Germany has legalized medical cannabis and is moving towards broader legalization plans by 2024. Meanwhile, here in Asia Thailand has emerged as a significant player in the Asian cannabis market after decriminalizing cannabis in June 2022, with projections suggesting its market could reach $1.2 billion by 2025.
Other notable contributors include Morocco, known for its hashish production, which recently legalized therapeutic cannabis; and countries like Australia and New Zealand, which are advancing their medical marijuana frameworks. Additionally, several European nations such as Malta, Luxembourg, Portugal, and Spain are also making progress toward the legalization or decriminalization of marijuana for medical or personal use.
Thailand CBD market
When a cannabis plant is heated specific chemicals get released, the most common ones are THC and CBD. Most people are aware that THC chemical is known for its psychoactive effects and specific medical applications, However, CBD offers therapeutic benefits without the high. Smoking cannabis but not getting high is definitely a different feeling, but what is the main focus of CBD.
CBD main customers
Most CBD customers are diverse, encompassing several key consumer segments. One of the largest groups is
Glam Users, primarily female consumers tend to spend $50 or more per product and make up about 55% of the U.S. CBD market. They typically purchase edibles and topicals and align their buying habits with wellness trends.
Daily Symptom Attackers, which include around 50% of CBD users who regularly use products to manage chronic conditions such as anxiety, depression, and arthritis; often prefer edibles like CBD drinks and tinctures.
Grassheads, younger consumers who use THC daily, represent about 47% of CBD users and are price-sensitive, often seeking affordable options. Overall, the CBD market attracts health-conscious individuals looking for natural remedies, as well as younger consumers interested in THC-related products, reflecting a growing trend towards holistic wellness solutions.
Countries where CBD is legal
In these countries they demonstrate a cautious approach to integrating CBD into their health and wellness sectors, reflecting broader trends in global cannabis culture while grappling with traditional mindset and regulatory challenges is permitted under strict regulations while THC remains illegal. For instance, in Japan, CBD can be sold as long as it contains no more than 0.3% THC, making it accessible for therapeutic use without the psychoactive effects associated with THC.
The Japanese market has seen a rise in CBD products, particularly in cosmetics and wellness items, as consumers become more aware of the potential health benefits of CBD. However, the stigma surrounding cannabis remains strong, largely due to historical associations with drug use. Northwestern Asian culture sees weed as a demonic plant that leads people into sin and laziness. However, its been reported that Japanese authority are aiming to legalise medical marijuana use.
