By Ismail Izi Karadeli
Founder & Head of operations ANDAMAN GENETICS CO, LTD.
In a dramatic shift that has sent shockwaves through Southeast Asia’s cannabis industry, Thailand has officially reversed much of its previous liberal stance on marijuana. Once hailed as a progressive pioneer for being the first Asian country to decriminalize cannabis in 2022, the Kingdom has now enacted strict new laws that reclassify cannabis flower (bud) as a “controlled herb” under the supervision of the Ministry of Public Health.
The policy U-turn, implemented in June and July 2025, marks a significant rollback of recreational cannabis access and a reorientation toward tightly regulated medical use. With the new laws now in effect, tens of thousands of cannabis entrepreneurs, small farmers, and consumers face an uncertain—and in many cases, unsustainable—future. At the same time, a smaller segment of government-authorized stakeholders stands to benefit significantly from the tighter controls.
The New Law: Medicalization and Criminalization
Under the revised regulation issued by Thailand’s Ministry of Public Health, cannabis bud can only be legally sold or possessed with a valid prescription from certified professionals such as medical doctors, traditional Thai medicine practitioners, or dentists. Retailers wishing to sell cannabis must now operate as registered medical clinics with licensed staff on-site, and undergo a complex compliance and licensing process.
Other major provisions of the law include:
- Ban on online sales, vending machines, cannabis advertising, and promotional events.
- Prohibition of public use of cannabis, with fines and imprisonment introduced for offenders.
- Stricter cultivation standards, requiring GACP (Good Agricultural and Collection Practices) certification for all growers, regular reporting, and mandatory inspections.
- Heavy penalties for non-compliance, with violations carrying up to one year in prison or fines up to 20,000 Thai baht (~$600 USD).
In effect, the cannabis industry has been pushed into a highly regulated medical-only framework. Products like THC edibles, infused beverages, and recreational pre-rolls are no longer legally available unless prescribed and dispensed in clinical settings.
Why the Sudden Reversal?
The rapid policy shift stems from a confluence of public health concerns, political pressure, and international scrutiny.
After Thailand decriminalized cannabis in 2022, the industry exploded. More than 12,000 dispensaries opened in less than two years, many targeting tourists and casual consumers. The pace and scale of growth far outstripped regulation. Critics argued that a legal gray zone had emerged—one that enabled widespread recreational use under the thin veil of “wellness” claims.
Health officials reported increasing cases of cannabis-related hospital visits, particularly among youth. The Pheu Thai-led government, which came to power in 2023, made clear its intention to rein in what it saw as uncontrolled commercialization.
Adding to the pressure were international incidents, including several high-profile cases where tourists were caught attempting to smuggle Thai cannabis into countries where it remains illegal. This drew global media attention and embarrassed Thai authorities, prompting them to tighten oversight to avoid being labeled a cannabis export hub for the black market.
Moreover, the departure of the pro-cannabis Bhumjaithai Party from the ruling coalition in mid-2025 gave the Pheu Thai government the political space needed to implement stricter reforms without resistance.
Who Is Hurt the Most?
The new cannabis law disproportionately affects small business owners, farmers, and informal workers who were at the heart of Thailand’s cannabis boom.
Dispensary Owners
Most of the ~12,000 dispensaries operating across Thailand do not meet the new medical-clinic registration requirements. These businesses face immediate closure unless they can rapidly restructure their operations—something financially and logistically unfeasible for the majority. The tourism-focused cannabis cafes, street kiosks, and small-town shops that once symbolized the green wave are being wiped out.
Independent Farmers
Thailand’s original legalization wave had promised rural farmers a chance to cash in on a high-value crop. However, under the new rules, cultivators must comply with GACP standards, a complex and expensive process involving detailed SOPs, environmental controls, and ongoing inspections. Smallholders, particularly in provinces like Buriram and Chiang Mai, lack the capital and training to meet these requirements, leaving them behind as corporate operators take over.
Recreational Users and Tourists
For both locals and international tourists, casual access to cannabis is now effectively gone. The days of buying joints at a beach bar in Koh Samui or edibles in Bangkok are over. Without a medical prescription, even possessing cannabis is now risky—and can result in fines, confiscation, or jail time. This threatens to derail cannabis tourism, which had become a growing niche in the broader Thai travel market.
Who’s Winning?
While thousands are facing hardship, a smaller number of actors are poised to profit from the new legal environment.
Certified Medical Clinics
Doctors and Thai traditional medicine practitioners licensed to prescribe cannabis now hold a legal monopoly over cannabis access. Clinics that comply with Ministry of Public Health guidelines can not only charge for consultations but also control distribution. The new regulations have essentially handed the industry to the medical sector, where margins may be slimmer, but legal certainty is stronger.
Large-Scale GACP-Compliant Growers
The new system favors capitalized businesses that have already invested in clean-room facilities, lab testing, and traceability systems. Companies holding or pursuing GACP certification now have an exclusive role in supplying licensed clinics. Foreign investors and domestic conglomerates with ties to traditional agriculture and pharmaceutical industries are particularly well-positioned.
Regulatory & Certification Bodies
Government departments and third-party auditors involved in licensing, training, and compliance enforcement have gained greater relevance—and income streams. As the cannabis industry is forced to professionalize under strict medical standards, services related to certification, SOP development, staff training, and auditing will become increasingly lucrative.
Legal Gray Zones and Risks
Although the new law attempts to draw a clear boundary around legal use, a number of unresolved issues remain:
- Enforcement inconsistencies: Provincial and local authorities vary widely in how strictly they apply the rules, creating confusion for business owners.
- Black market growth: As access to legal cannabis is restricted, many fear a resurgence in the illicit trade—a trend already reported in northern and southern provinces.
- Legal challenges: Several cannabis advocacy groups are preparing lawsuits or petitions challenging the reclassification, citing the economic damage to citizens who had previously invested legally in the sector.
Conclusion: From Green Gold to Controlled Herb
Thailand’s cannabis industry has undergone a breathtaking transformation in just three years—from radical liberalization to heavy medicalization. The country’s initial embrace of cannabis was hailed as a model for Asia. Its current reversal is now being watched just as closely.
For those hoping to see cannabis integrated into Thailand’s broader economic and wellness infrastructure, the new law is a major setback. For those advocating medical professionalism, stricter public health policies, and international reputability, it’s a necessary course correction.
Either way, the new law sends a strong message: Cannabis in Thailand is no longer open for casual business.
