On the High: Marijuana in Thailand – Beragampengetahuan

Like many other industries, the legal cannabis market in Thailand faced challenges during the COVID-19 pandemic. The market experienced a decline from 2019 to 2020 due to lockdowns and disruptions in industrial activities. Supply chain disruptions and reduced research on CBD also contributed to this decline.

**Industrial Growth and Market Dynamics**

The hemp segment, focused on industrial hemp, dominated the Thai legal cannabis market in 2021, accounting for 88.4% of revenue. Hemp is prized for its seeds and fibre, used in products ranging from oils to ropes and clothing. While the Thai government has restricted the importation of hemp until 2026, it encourages private-sector involvement in hemp commercialisation.

However, marijuana is projected to exhibit the fastest CAGR of 86.9% in the forecast period, driven by growing consumer acceptance and awareness of its health benefits. The marijuana segment encompasses flowers and oil & tincture, with extensive research being conducted on their medical applications.

The cannabidiol (CBD) market segment led the way in 2021, claiming about 68.4% of revenue. CBD’s popularity stems from its effectiveness in treating conditions such as epileptic seizures and chemotherapy-induced nausea. It is also explored for anxiety, Crohn’s disease, Parkinson’s disease, pain relief, and other chronic conditions. The medical segment, too, is on the rise, supported by clinical trials and growing social acceptance. Various industrial sectors are now infusing marijuana in their products, for example- tea, soaps, toothpaste, etc. As the cannabis is legalised. The industry’s growth is further propelled by the increased rate of FDA approvals, the development of a proper regulatory framework, and growing investment in this segment. Medical marijuana is highly used in the healthcare sector for treatment and research studies. Flowers, oils and tinctures are segmented with marijuana, which is being extensively studied for numerous medical applications.

The medical segment is also projected to grow at a lucrative rate. Various studies have proven that medical CBD is safe for the treatment of patients suffering from chronic pain and neuropathic pain. The rising percentage of clinical trials with marijuana to treat chronic pain and neuropathic is a contributing factor in increasing its usage for pain management, which directly impacts the industry positively. Also, the growing social acceptance of marijuana, increased amount of disposable income, the rising awareness around its benefits and the growth of popularity of its therapeutic properties within the country have accelerated the growth.

Various domestic companies have planned to enter the CBD market as cannabis production is legalised. In October 2021, Sri Trang Agro-Industry announced that its subsidiary Sri Trang Rubber and Plantation had received a license to grow hemp in Thailand. Depending on the demand, they would expand their portfolio into the CBD market on this company.

The key participants in the Thailand legal cannabis market are coming up with different strategic initiatives to expand their business footprint and gain a competitive edge in the market. Key players focus on strategic initiatives like- mergers & acquisitions, collaborations, partnerships, funding & investments, innovative product developments & launches to expand their expertise & product portfolio, and many other things. In May 2023, a leading global cannabis and consumer packaged goods company named- Tilray Brands, Inc. launched a new infused tea collection by cannabis wellness brand Solei, marking the brand’s first cannabis-infused drink line.