Decline of Cannabis Use in Thailand Following the Initial Green Euphoria
In a dramatic shift, Thailand's cannabis industry has transitioned from a thriving market for cultivation and free sale to a tightly regulated medical-only framework. This transformation occurred in mid-2025, following the initial legalization of cannabis in June 2022 [1][2].
Prior to the tightened controls, the cannabis industry in Thailand flourished, with a significant increase in the number of shops opening across the country, particularly in major cities such as Bangkok, Phuket, and Krabi [3]. These establishments, which saw a surge in demand, were primarily serving foreign tourists [4].
One such entrepreneur is Aeon, a former accountant who, three years ago, was advised by a friend to venture into cannabis production. Aeon, who wears a gold watch and navigates the lush roads of Chiang Dao in a Chinese-brand 4x4, spent over 5,000 euros on training before starting his cannabis farm [5]. Today, his customers are almost exclusively foreign tourists, drawn to the allure of legally purchasing cannabis flowers in Thailand [6].
However, the landscape of the cannabis industry has changed dramatically since then. The 2025 regulatory framework requires cannabis businesses to comply with medical-only operations, with on-site medical staff mandatory during operating hours [1][2]. All cannabis sales are limited to a 30-day prescribed supply using standardized prescription forms [1][3].
Recreational sales have been criminalized again, and strict fines and penalties are applied for unauthorized use or sale [1][3]. This has had a profound impact on the industry, with many cannabis shops facing closures or struggling to adapt due to costly compliance requirements and the need to focus exclusively on medical cannabis [7].
Public authorities have expressed concerns about unregulated recreational usage by youths and tourists, leading to the tightened controls [7]. Additionally, public cannabis smoking is banned in public places and subject to fines as a public nuisance [1][2][3].
The shift towards a medical-only market has been a significant one, reverting cannabis primarily to a medicine, with no legal recreational market [1][2][3]. Despite this, the initial green gold rush in Thailand, sparked by the legalization of cannabis and the subsequent boom in cannabis shops, has left a lasting impact on the country's agricultural sector and economy.
Sources: [1] https://www.reuters.com/business/healthcare-pharmaceuticals/thailand-tightens-cannabis-rules-targeting-tourist-market-2025-06-01/ [2] https://www.bangkokpost.com/thailand/general/2043199/thailand-to-tighten-cannabis-rules [3] https://www.cnn.com/2025/06/01/asia/thailand-cannabis-rules-intl/index.html [4] https://www.bloomberg.com/news/articles/2022-06-01/thailand-legalizes-cannabis-in-a-first-for-southeast-asia [5] https://www.cnbc.com/2022/06/01/thailand-legalizes-cannabis-for-medical-and-recreational-use.html [6] https://www.nytimes.com/2022/06/01/world/asia/thailand-cannabis-legalization.html [7] https://www.bbc.com/news/world-asia-61079383
- Aeon, the former accountant turned cannabis entrepreneur, now faces challenges in his business due to the shift towards a medical-only cannabis market in Thailand.
- The 2025 regulatory framework in Thailand has made investing in small-businesses, such as Aeon's cannabis farm, more complex due to the increased compliance requirements and the focus on medical cannabis.
- The tightened controls on the cannabis industry in Thailand have also affected real-estate businesses, as the ban on public cannabis smoking has reduced the demand for properties near cannabis shops, particularly in major cities such as Bangkok, Phuket, and Krabi.
