What was once heralded as a liberal era for Thailand Cannabis industry is now facing a dramatic and abrupt reversal. After decriminalizing the plant in 2022, leading to a burgeoning market, the government has moved swiftly to re-criminalize recreational use, sending shockwaves through a multi-billion-dollar industry and dimming the dreams of a ‘cannabis utopia’. The sudden policy shift leaves many questioning what comes next.
The initial decriminalization of Thailand Cannabis sparked a boom, with thousands of dispensaries, cafes, and related businesses mushrooming across the country. This liberal stance attracted tourists and entrepreneurs alike, creating a vibrant, albeit largely unregulated, market that contributed significantly to the economy. It was an exciting, experimental period for the nation.
However, the lack of a comprehensive regulatory framework led to concerns over widespread recreational use, particularly among minors, and a perceived social fallout. Public health advocates and conservative factions pushed for stricter controls, arguing that the policy had strayed too far from its original intent of promoting medical and health-related uses.
The recent policy change, effective June 25, 2025, reclassifies cannabis flower as a controlled herb. This move essentially bans recreational use and mandates that sales are strictly for medical purposes, requiring a prescription from a licensed medical professional. This is a significant blow to the informal market that flourished under the previous relaxed rules.
For the thousands of existing cannabis shops and businesses, the future is uncertain. Many will be forced to shut down unless they can transform into licensed medical clinics with on-site doctors, a costly and complex undertaking. This transformation poses a massive challenge for smaller operators, potentially consolidating the market into fewer, larger entities.
The implications for Thailand’s Cannabis tourism are also considerable. The country had become a popular destination for “cannabis tourism,” drawing visitors attracted by its relaxed laws. With recreational use now prohibited and stricter enforcement in place, this particular tourist draw is expected to dwindle significantly.