Thailand Legal Cannabis Market Size, Share & Trends Analysis Report By Source (Hemp, Marijuana), By Derivatives (CBD, THC), By Cultivation (Indoor Cultivation, Greenhouse Cultivation), By End-use (Industrial Use, Medical Use), And Segment Forecasts, 2024 - 2030

Thailand Legal Cannabis Market Trends

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.

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.

Market Concentration & Characteristics

The Thailand legal cannabis market is characterized by a high degree of innovation owing to increased product demand due to its therapeutic benefits without intoxication, growing preference for cannabis extracts such as tinctures and oils, and rising R&D activities on the use of cannabis and its medicinal properties. For instance, in May 2022, Charoen Pokphand Produce (CPP) and Charoen Pokphand Foods (CPF), under the umbrella of agribusiness and food conglomerate CP Group, collaborated with Gunkul Engineering, a construction and renewable energy developer company, to develop cannabidiol-infused beverage products and food.

The market is characterized by a moderate level of merger and acquisition (M&A) activities. Companies adopt various growth strategies to strengthen their market positions and revenues, which further helps drive market growth. For instance, in February 2024, Teera Holding Co., Ltd., a Thai medicinal herb operator, acquired Golden Triangle Group Co., Ltd., a cultivation facility and Thailand’s first CUMCS/GACP certified cultivator in Chiang Rai, Thailand .

The cannabis industry in Thailand is flourishing due to a structured regulatory framework for the cultivation and sale of cannabis. The Thai FDA is the primary regulatory authority for cannabis- and hemp-related products in Thailand. These products are subject to monitoring and regulation under the Narcotics Act, especially extracts of cannabis and hemp containing more than 0.2% Tetrahydrocannabinol (THC) by weight. Furthermore, cannabis cultivation is regulated and categorized by the Cannabis and Hemp Act drafting committee. Similarly, in February 2024, the Thai Health Minister announced the ban of recreational consumption of cannabis by the end of 2024. However, the ambiguity surrounding the current allowances is hampering the recreational cannabis business scenario in Thailand.

Some non-cannabis cannabinoids are considered to have similar health benefits as cannabis derivatives. These include ginger root, magnolia, black pepper, clove oil, echinacea, and peony. However, despite their comparable medicinal properties, their use in medicinal applications is limited.

Several market players are expanding their business into new countries to strengthen their market position and product portfolio. For instance, in December 2023, Sunderstorm, Inc. announced its plan to expand the KANHA brand by launching operations into Thailand's market.

Source Insights

The hemp segment dominated the market with the highest revenue share of 67.3% in 2023. Due to the legalization of hemp and the increasing awareness of the levels of CBD present in it, there has been a surge in demand for hemp extracts across various industries, such as cosmetics, personal care, nutraceuticals, and pharmaceuticals. For instance, beauty brands such as Element Apothec, derived from hemp are available in Thailand. Moreover, the rising trend for using organic and sustainable clothing has impelled growth opportunities for adopting hemp-based textiles in the textile & clothing industry. For instance, Prestige Creations Co. Ltd., a Thai manufacturer of packaging bags, offers modern printed hemp cushions for home decoration, durable hemp cosmetic bags, and medium-sized hemp handbags.

The marijuana segment held the second-highest revenue share in 2023. The demand for marijuana in Thailand is expected to increase due to growing awareness about its therapeutic applications, such as appetite enhancement, pain management, and eye pressure reduction, and changing consumer behavior toward recreational marijuana. Moreover, smoking cannabis is much more economical than purchasing oral products or tinctures, and hence, most people prefer smoking. In addition, the onset of action post-smoking cannabis is rapid. For instance, according to several studies conducted in Thailand, 41% of individuals with cancer expressed a desire to use cannabis-based products, which included cannabis flowers and buds. This increases the growth potential of the segment.

Cultivation Insights

The indoor cultivation segment accounted for the largest revenue share in 2023 and is expected to register the fastest CAGR of 54.5% during the forecast period. Indoor cultivation refers to growing cannabis in an enclosed area, which could be a room, tent, or designated area mimicking nature. Thai and foreign investors are greatly interested in the Thailand market. The country has seen a rise in investment in indoor farming from various countries such as the U.S., Russia, Australia, Singapore, and Europe. For instance, in April 2022, Medicana Lab Co planned to spend USD 3.36 million (120 million baht) to boost its medical hemp business by manufacturing CBD oil from its hemp farm via a closed system.

The outdoor cultivation segment is expected to grow significantly over the forecast period. The cost of cultivating cannabis outdoors is comparatively cheaper than other cultivation methods due to the natural environment providing most of the essential growing factors for cannabis plants. This results in a rise in the number of outdoor cultivation farms, as it eliminates the need for expensive growing equipment and lowers the overall cost of operation, thereby boosting the segment's growth.

Derivatives Insights

The CBD segment dominated the market with the largest revenue share of 79.5% in 2023, and the segment is registered for the fastest CAGR growth over the forecast period. Increased use of CBD in nutraceutical products, is positively impacting the industry growth. Numerous nutraceutical companies are incorporating CBD into supplements and functional foods and offering them in different packaging forms. For instance, in China, MGC Pharmaceuticals offers a range of nutraceutical-based products such as BCAA CBD hemp powder, CBD capsules, CBD herbal V-pen, and water-soluble CBD solution. They have plans to expand their operations in Thailand, Japan, Vietnam, and South Korea. In addition, some companies have introduced CBD-based pet food to the market.

The THC segment is expected to witness lucrative growth over the forecast period. The legal landscape of cannabis in Thailand has recently undergone a transformative shift, and more people are accepting THC. The Thai government allows controlled levels of THC in various cannabis products. This change highlights the increasing recognition of the therapeutic potential of THC and its positive effect on medical conditions, resulting in a significant expansion of segment growth in Thailand.

End-use Insights

The industrial use segment dominated the market with a revenue share of 46.9% in 2023. Hemp is one of the oldest known textile fibers and has experienced a boost in demand after its legalization. The legalization has increased the focus on analyzing the technical properties of hemp, thereby increasing research efforts. Furthermore, consumers are increasingly adopting cannabis in various non-textile applications to reduce pollution, deforestation, and non-biodegradable waste in landfills. For instance, Hempcrete, a construction material made from hemp, is an effective insulator that can help maintain comfortable indoor temperatures in Thailand's tropical climate, thereby reducing the need for energy-intensive cooling systems.

Recreational use segment held a significant market share in 2023 and is expected to grow at the fastest CAGR over the forecast period. The legalization of cannabis in Thailand resulted in a cannabis tourism boom for the country. As a result, people across the globe visit Thailand for cannabis-themed events. Furthermore, certain parts of Thailand possess advanced infrastructure to cater to cannabis tourism compared to other areas of the country.

Key Thailand Legal Cannabis Company Insights

Key companies in the market are adopting various strategies, including mergers & acquisitions, partnerships & collaborations, and new product launches, to increase their market share and strengthen their position in the market. For instance, in August 2023, Go High Thai, a leading Thailand cannabis dispensary website, launched a comprehensive directory listing all legal cannabis dispensaries in Thailand.

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.

Thailand Legal Cannabis Market Report Scope

Thailand Legal Cannabis Market Report Segmentation

This report forecasts revenue growth at country level and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the Thailand legal cannabis market report based on source, cultivation, derivatives, and end-use:

• Source Outlook (Revenue, USD Million, 2018 - 2030)

  • Hemp

    • Hemp oil

    • Industrial Hemp

  • Marijuana

    • Flower

    • Oil and Tinctures

• Cultivation Outlook (Revenue, USD Million, 2018 - 2030)

  • Indoor Cultivation

  • Greenhouse Cultivation

  • Outdoor Cultivation

• Deriatives Outlook (Revenue, USD Million, 2018 - 2030)

  • CBD

  • THC

  • Others

• End-use Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Industrial Use

  • Medical Use

    • Chronic Pain

    • Depression and Anxiety

    • Arthritis

    • Post-Traumatic Stress Disorder (PTSD)

    • Cancer

    • Migraines

    • Epilepsy

    • Alzheimer’s

    • Multiple Sclerosis

    • AIDS

    • Amyotrophic Lateral Sclerosis

    • Tourette’s

    • Diabetes

    • Parkinson's

    • Glaucoma

    • Others

  • Recreational Use