The Rise Of The Thailand Legal Cannabis Market: Opportunities For Entrepreneurs

Thailand Legal Cannabis Industry Overview

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. Market growth can be attributed to the legalization of cannabis, growing awareness about the therapeutic benefits of cannabis-based products, and increasing use of cannabis for recreational & medical purposes. In addition, the product is useful for treating neurologic problems, such as epilepsy, depression, and anxiety. According to Bumrungrad International Hospital, in Thailand, approximately 700,000 people are suffering from epilepsy.

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Furthermore, there is a high demand for various cannabidiol (CBD)-infused products, such as beauty products, cannabis oil, beverages, gummies, capsules, etc. in the market. CBD can be consumed through various means, such as vaping, smoking, ingesting, and transdermal routes. CBD is utilized to produce personal care products and medical drugs. Legalizing cannabis-based products has opened up significant opportunities for various end-use industries to expand their product offerings. For instance, in April 2023, SAPPE or Sappe PCL, a provider of functional drinks in Thailand, introduced CBD water under the brand name “SAPPE Keaf” in two flavors such as CBD Water Vitamin B Complex with peach flavor, which enhances work attention with essential ingredients such as vitamin B complex, including B5, B3, B6, & B12 and honey-yuzu flavored CBD Water Chamomile sour-sweet in taste, which helps in relaxation. Thus, a surge in the launch of new products is anticipated to propel market growth.

Moreover, hemp-derived CBD has several medical benefits. Medical CBD is most commonly used for pain control. It helps relieve nerve pain and pain of multiple sclerosis in addition to being used as a muscle relaxant. These health benefits have contributed to the popularity of medical CBD in the pharmaceutical industry. For example, SEYA Relief, Bloom, and Mellow Organic are some of the CBD oil brands available in Thailand. A favorable regulatory framework for hemp cultivation and growing demand for hemp-based CBD products are projected to drive the segment growth over the forecast period.

The demand for medical marijuana is expected to grow significantly over the forecast period due to various factors. One of the key drivers is the high prevalence of cancer. For instance, according to the Global Cancer Observatory, Thailand recorded 190,636 cancer cases in 2020. In addition, the growing burden of chronic pain and the increasing demand for pain management therapies are expected to contribute to the rise in demand for cannabis over the forecast period.

The Thai Government's Public Health Policy ensures that every patient who requires medical cannabis has equal access to all possible forms of treatment. This includes traditional Thai medicine, modern drugs, traditional remedies suggested by local healers, and drugs not yet registered but of high quality and made available through the Special Access Scheme (SAS). Thus, such initiatives are expected to boost the demand for medical cannabis in the country.

In addition, the increasing number of patients opting for medical cannabis, farmers choosing cannabis as a new cash crop, and better government initiatives for increasing economic opportunities for home cultivators, as well as licensed producers, are among the factors anticipated to boost the cannabis industry over the forecast period. For instance, according to a deputy government spokesperson, Traisulee Traisoranakul, as of February 2021, around 251 provincial hospitals and 2,500 households had cultivated 15,000 cannabis plants.

Thailand is emerging as a popular cannabis tourism destination across the globe. Although cannabis tourism is still in its initial stage in Thailand, it is already gaining popularity among tourists who desire unique experiences and adventures. Cannabis has been easily available in Bangkok and Chiang Mai. However, the southern islands of Thailand, such as Krabi, Railay, Koh Lanta, Koh Phangan, and Koh Lanta, have popular cannabis cafes. These places offer numerous relaxing spots for cannabis consumers, which drive the product demand.

Furthermore, recently, in February 2024, Thailand's Health Minister, Cholnan Srikaew, stated that by the end of 2024, the recreational use of cannabis will be prohibited in the country. However, the use of cannabis for medical purposes will still be permitted. The minister further added, "Without the law to regulate cannabis, it will be misused, and the misuse of cannabis has a negative impact on Thai children ." The proposed ban poses challenges for the cannabis industry in the country, including growers, dispensaries, and consumer-agro firms.

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Recent Developments

• In August 2023, CMU and Atlanta Medicare invested USD 28 million in constructing closed-system cannabis manufacturing facilities in Thailand. The facilities were planned to be ready for production by early 2024.

• In December 2022, Sunderstorm, a manufacturer of cannabis products, partnered with THCG Group Ltd., a Thailand-based cannabis company, to launch Kanha cannabis and hemp gummies.

• In January 2022, Osotspa Public Company Limited joined forces with Yanhee Vitamin Water Company Limited to tap into the cannabis and hemp-based beverage market. This strategy opened up a new business opportunity and paved the way for expansion into a market with strong growth potential.