Altered Market Dynamics: Cannabis Influences Economic Harm Shifts
In a surprising turn of events, Thailand has recriminalized cannabis use, marking a reversal from the 2022 decriminalization that briefly made the country the first Asian nation to allow both recreational and medical cannabis usage. This decision, effective since June 26, 2025, has significant implications for public health, the economy, and small cannabis growers.
The new legislation bans recreational cannabis use, allowing medical cannabis use only under strict prescription-based regulations. Retail sales require certified practitioners and prescriptions, while cultivation and handling necessitate certification and licenses. Cannabis extracts with over 0.2% THC are classified as narcotics, and strict enforcement with significant penalties for violations is expected.
Small growers and local businesses face significant challenges due to the tightened regulations. The need for Good Agricultural and Collection Practice (GACP) certification, special licenses, and adherence to strict documentation and reporting create barriers to entry. The ban on recreational sales and the requirement for medical prescriptions likely reduce the overall consumer base and demand from informal markets, potentially hurting growers who thrived during the decriminalized period. Activists and critics argue that political motives have jeopardized the livelihoods of small cannabis entrepreneurs.
The cannabis industry, estimated to be worth around $1.2 billion by the end of 2025, is at risk of significant contraction due to these restrictions. The recriminalization and strict regulatory framework may dampen investment, reduce tourist attraction related to cannabis tourism, and slow economic momentum in this sector.
The government justifies recriminalization as necessary to protect public health, particularly children and youth from adverse effects of unregulated recreational cannabis use. Authorities cite complaints about the social and health repercussions from widespread consumption. Limiting cannabis use to medical settings is intended to enable better control over dosage, quality, and usage duration, aiming to mitigate public health risks. The policy reflects a shift toward a more cautious, controlled approach focusing on minimizing harm rather than liberal access.
Despite these changes, cannabinol (CBN) continues to be trialled worldwide for its potential health benefits. Unlike tetrahydrocannabinol, CBD and CBN are classified as non-psychoactive substances. There is also speculation that the new regulations may allow students or those below 20 to purchase cannabis with a medical prescription.
The debate over the recriminalization of cannabis in Thailand is complex, with concerns about irresponsible sales and underage use of cannabis at its core. Cannabis advocates will hold a mass rally at the Ministry of Public Health on Monday to protest the government's campaign to recriminalize cannabis.
Meanwhile, the World Health Organization (WHO) has urged authorities to redirect their attention to alcohol regulations and legislation, as alcohol remains a major global cause of death, contributing to over 2.4 million deaths annually.
[1] "Thailand recriminalizes cannabis, a setback for drug liberalization". Reuters. (2025). [2] "Thailand's U-turn on cannabis: what does it mean for the industry?". The Straits Times. (2025).
- The new policy-and-legislation in Thailand bans recreational cannabis use, shifting the focus to mental-health and public-health concerns, since cannabis is only allowed for medical use under strict regulations.
- In the general-news, a debate has emerged over the recriminalization of cannabis in Thailand, with activists and critics arguing that the controversial move has jeopardized small cannabis growers and could harm the $1.2 billion health-and-wellness sector by 2025.
- As Thailand recriminalizes cannabis use, organizations such as the World Health Organization (WHO) are calling for authorities to redirect their attention to alcohol regulations and legislation, as alcohol remains a major global cause of death, contributing to over 2.4 million deaths annually.