Written by Michael Sassano, CEO of Somai Pharmaceuticals
Thailand's cannabis market is now a full-fledged recreational model and has exploded faster than any other market in the history of legal cannabis. The only comparable markets would be California 15 years ago and New York last year, perhaps with the addition of steroids.
Thai lek boom reminiscent of early California and New York
There are over 12,000 licensed pharmacies in Thailand, excluding unlicensed sellers. California had nearly 3,000 unlicensed dispensaries at the start of its adult-use cannabis market, and within months of decriminalization New York City had thousands of unlicensed dispensaries, but that pales in comparison to Thailand's growth.
This dominance of unlicensed pharmacies in Western markets is difficult to compare with Thailand, which has a largely licensed and legal infrastructure. Potentially, this system is about to be shaken by rumors of a tough medical market ahead. But once you set foot in Thailand, it's almost impossible to imagine an American or European-style medical or recreational model being successful. why? Because cannabis is everywhere!
Thai regulators are cleaning up a messy but busy industry
Thailand's early cannabis laws fostered a pioneering recreational cannabis culture, blending modern entrepreneurship with old-school hippie ideals. There has been a lot of debate and political waves about moving to a medical model, but the chances of putting this genie back in the bottle seem highly unlikely.
On Thailand's side, wealthy neighbors such as Singapore and China are promoting only medical cannabis. Meanwhile, less wealthy countries like Cambodia and Laos look to Thailand for rich ideas, including a burgeoning recreational market. There is pressure from both sides, and legally speaking, only very light cleaning is possible at this point.
Despite active investment activity, Thailand remains an insider market
Internally, massive growth and retail performance has led to powerful conglomerates investing like Thai Stick, American companies like MedMen, every entrepreneurial venture imaginable, and even global underground growers. It extends to But there's no doubt about it. This is an insider market, and the rules are not yet followed or strongly enforced.
For example, each clinic must have a responsible doctor, but enforcement is lax or non-existent. Dozens of combination products and medicines that closely resemble traditional Thai medicine formulas have been approved by the Food and Drug Administration of Thailand and made available to medical professionals. Therefore, it is clear that cultivation and retail sales are highly developed and continue to develop. Additionally, while infused products are severely restricted, nearly every store sells a wide range of homemade infused gummy bears and brownies.
Cultivation will flourish if Thailand builds a foundation for exports
Many international growers are turning to markets in Australia and the European Union, but these countries have few regulations on imports and exports.
Thailand has a rich history of cannabis cultivation and has a low-cost cultivation environment. Therefore, exporting to high-value import markets like Germany is advantageous. Cannabis consultants in Thailand are all building indoor facilities for groups, closed greenhouse hybrid technologies like Thai Stick, and even consulting on outdoor cultivation, and the list goes on.
With cannabis being sold on every street corner and prices falling, the Thai market has clearly reached an inflection point in terms of large supply and corresponding sales infrastructure. Although much improvement is needed, Thailand could provide the world's best cannabis if exported.
Landrace Thai Cannabis Genetics Offers Unique Global Opportunities
Some traditional growers have emerged from the underground world and succeeded in cultivating ancient, pure Thai genetics in new indoor facilities. Local and global markets would be lucky to have these strains available today, all of which have been crossed many times elsewhere. A major limitation is that cannabis can only be exported to EU member states as “samples” or if a special export drug license or certification, such as EU-GMP, is received.
So far, very few groups have received EU-GACP registration and, despite the typical cannabis rumblings and rumors, none are likely to export. If Thailand can export, it will have a major advantage in the global cannabis market. Cannabis exports would bring significant economic benefits to Thailand, similar to cannabis cultivation in countries such as South Africa.
Preparing for the future “medical” cannabis market in Thailand
Thailand's parliamentarians are most likely to pass a medical cannabis law to better control the industry as a whole and allay the concerns of its wealthier neighbors. But there's no doubt about it. Similar to Florida, the cannabis market will exist legally for medical purposes, while functionally it will be one of the most advanced recreational markets ever imagined.
Global companies looking to bring their products to Thailand need not worry. Local residents and an army of consultants continue to expand internal supplies. While dispensaries are shrinking, cultural differentiation and cannabis entertainment will be a boon for innovative local entrepreneurs who can navigate the legal framework.
Exports are inevitable and may be included in future medical cannabis legislation, so global distributors must carefully select and prepare their cultivation partners. Australian carriers are natural future trading partners. Entering the EU market will be a win-win for growers who partner correctly and grow consistent, high-quality cannabis flower.
Don't believe the medical cannabis hype in Thailand
Whatever regulations come, the start of Thailand's recreational business was so impressive and large-scale that reversing the boom would do more harm than good, and a more controlled tax base or It will probably be impossible to achieve the market.
From a global reputation level, clearer quality rules would go a long way in strengthening export demand and providing safety for all consumers. More globally oriented companies will adhere to purchasing quality standards, while most regional operators will support local cannabis markets with less social orientation. If you want to see what a Disney-esque vision of recreational cannabis in Asia looks like, go to Thailand.
