Thailand Legal Cannabis Market Likely To Touch At $9.6 Billion By 2030: Grand View Research Inc.

 


The Thailand legal cannabis market size is expected to reach USD 9.6 billion by 2030, according to a new report by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 58.4% from 2022 to 2030. The growth is attributed to the rising usage of cannabis for recreational and medical purposes. Cannabis legalization has opened new revenue-generating opportunities for various industries in the country. The adoption of CBD oil and tinctures for treating various ailments like nausea, anxiety, and cancer along with the rising prevalence of cancer are some of the significant factors boosting the industry’s growth.

The growing burden of chronic pain has also augmented the rise in the usage of CBD for treatments related to pain management and thus, positively impacting the market growth. Various studies have shown positive outcomes of marijuana and its derivatives to treat symptoms of several chronic conditions. For instance, it has been effectively used to treat patients dealing with chronic pain, nausea induced by chemotherapy, and neurological diseases such as Alzheimer’s and Parkinson’s. Hence, FDA and other government organizations are permitting marijuana derivatives for the prescription of several diseases. This is one of the key factors for the quick turnaround.

In 2018, Thailand legalized the adoption of cannabis for medical purposes. Furthermore, in June 2022, the government decriminalized the distribution, cultivation, consumption, and marketing of all the parts of the cannabis plant. The Thai Food and Drug Administration has also removed the cannabis plant from the Category 5 narcotics list. Although, smoking cannabis in public areas is still illegal.

Furthermore, the rising disposable income of the country, increasing healthcare expenditure, a surge in social acceptance of CBD for its therapeutic applications, and an increasing number of product launches, along with improvements in intellectual property rights of Thailand are some of the key reasons that are expected to fuel the business growth.

Moreover, with this legalization, more domestic players are planning to explore the CBD market and key players are also planning strategic initiatives to expand their product portfolio and regional domination through mergers & acquisitions, collaborations, partnerships, funding & investments. For instance, in December 2020, Tilray Brand s Inc. merged with Aphria and will operate under the name Tilray. Such factors also fuel the industry’s growth. The growing trend of cannabis-infused food and beverages and the rising adoption of CBD oil by cosmetics and wellness industries also boost the industry’s growth within the country.

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https://www.grandviewresearch.com/industry-analysis/thailand-legal-cannabis-market-report/request/rs1

Some of the most common conditions where cannabis is used are: for treating malignant or non-malignant tumors, musculoskeletal disorders such as weakness, spasm, pain or rigidity, and neuropsychiatric disorders. Some other instances where cannabis is used for treatment such asthma, HIV-AIDS, herpes zoster, hypercholesterolemia, hypertension, and others.

According to the Committee for Public Relations on Medical Cannabis of the Ministry of Public Health, in 2021, Thailand had about 800 medical marijuana clinics and Thai traditional medical marijuana clinics under the Ministry of Public Health. Furthermore, on March 2021, 64 clinics and 22 hospitals received medical marijuana licenses from the Food and Drug Administration. Thus, positively impacting the market growth.

Thailand Legal Cannabis Market Report Highlights

  • The hemp segment dominated the Thailand legal cannabis industry in 2021 and accounted for the largest revenue share of 88.4%. Growing usage of hemp for industrial purposes is one of the key factors fueling the segment’s growth
  • The CBD segment held the largest revenue share of about 68.4% in 2021. The growth of the segment is attributed to the rising acceptance of CBD by consumers. However, the THC segment is expected to grow at the fastest CAGR of 61.4%
  • In 2021, the industrial segment held the largest revenue share at 81.9%. Growing adoption of CBD by various industries such as wellness and cosmetics, food and beverages, and others are projected to boost the segment’s growth

In 2018, Thailand legalized cannabis for medical purposes and by June 2022, the government decriminalized the distribution, cultivation, consumption, and marketing of all the parts of the cannabis plant. Due to this decriminalization, about 4,200 prisoners were released. Since then, the Thai Food and Drug Administration has also removed the cannabis plant from the Category 5 narcotics list. However, under the Public Health Act, smoking cannabis in a public area can lead to three months of jail and a fine of USD ~800.

Although, cafes and restaurants are allowed to serve cannabis-infused drinks and food, only if the THC content is limited to 0.2%. Furthermore, to mark the new rule of allowing cannabis production and planning to use cannabis as a crash crop, on 8th May 2022, Thailand’s health minister “Anutin Charnvirakul” posted on its Facebook wall that the Thailand government will distribute 1 million free cannabis plants to households throughout the country, which started on June 9, 2022.

A growing number of CBD-related R&D activities by government organizations, NGOs, private companies, and universities further drives the market growth. The growing healthcare sector within the country is one of the key factors that is increasing the usage of medical cannabis. The healthcare expenditure of Thailand is expected to grow to USD 50 billion by 2026 and the country is also the third most visited medical tourism destination. Thus, fueling the market growth.

Like other industries, the ongoing Covid-19 pandemic had negatively impacted the legal cannabis market. The graph of the legal cannabis industry in Thailand declined from 2022 to 2020, as due to lock down, most of the places were shut down and no industrial movements were taking place which hampered the market during that period. Most importantly, major supply chain disruptions in the cannabis industry and a decline in the research work related to CBD led to a decline in growth.

List of Key Players in the Thailand Legal Cannabis Market

  • PharmaHemp
  • MediPharm Labs, Inc.
  • Cresco Labs
  • Elixinol Thailand Limited
  • Tilray
  • Extractas
  • BOL Pharma
  • Canopy Growth Corporation
  • THC Thailand Group Ltd.

 

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