In 2022, Thailand removed marijuana from its narcotics list, triggering a Green Rush. However, there are plans to re-impose restrictions on marijuana use in 2024. In this discussion, we will explore how existing marijuana cafes and green businesses might evolve if recreational marijuana use is prohibited in Thailand, including my personal opinions.
The Future of the Cannabis Industry
Thailand made history in 2022 by legalizing marijuana, becoming the first in Asia to exclude it from the narcotics list. Post-legalization, a surge in marijuana businesses, known as the Green Rush, impacted not only Thailand’s tourism industry but also the medical and hospitality sectors. However, the current administration is gearing up to reintroduce regulations on marijuana. The proposed restraints limit marijuana use to medical purposes, declaring recreational use illegal. The new legislation explicitly defines products with THC concentrations exceeding 0.2% as narcotics, subjecting violators to fines and potential imprisonment.
Despite the impending regulations, many marijuana cafes and dispensaries dealing in joints and edibles dot Thailand’s bustling streets. Industry insiders highlight the quasi-legal nature of these establishments, with some operating without proper business licenses. Dispensaries even sell products with THC concentrations nearing 30%.
In response to the new legislation, the Minister of Health, in a media interview, stated that businesses with government-issued licenses could continue operations, but urged those focused on recreational sales to transition into clinics where physicians can prescribe marijuana products. To survive, marijuana cafes and dispensaries are now looking to collaborate with doctors and transition into clinics, with some establishments already prepared for this shift.
While the new regulations introduce a licensing system, restricting marijuana product sales to approved outlets, eradicating recreational marijuana sales entirely may prove challenging. If regulated, recreational marijuana transactions could move back to the underground market, potentially leading to inflated prices and lower-quality products. Reversing the legalization of marijuana would be a formidable task, but industry experts suggest that compromises may be reached to maintain the Thai government’s credibility. With anticipated formal announcements soon, we’ll stay updated on the latest news regarding this matter.