Thailand Recriminalises Recreational Cannabis Use: Implications for the Global Industry

In a significant policy reversal, Thailand has reclassified cannabis as a controlled herb, effectively banning its recreational use. This move comes three years after the country became the first in Asia to decriminalise the plant, leading to a booming cannabis industry.

Policy Shift and New Regulations 

On 23 June 2025, Thailand’s Public Health Minister Somsak Thepsuthin signed an order reclassifying cannabis buds as a controlled herb under the Protection and Promotion of Traditional Thai Medicine Wisdom Act of 1999. The new regulations, effective immediately upon publication in the Royal Gazette, restrict cannabis use to medical purposes only, requiring prescriptions from licensed practitioners. Sales through vending machines, online platforms, and in public spaces are now prohibited, and advertising is banned. Violators face up to one year in jail and a 20,000-baht fine

Impact on Thailand’s Cannabis Industry 

The policy reversal has sent shockwaves through Thailand’s cannabis industry, which had rapidly expanded since decriminalisation in 2022. An estimated 11,200 dispensaries had opened nationwide, contributing to a market projected to reach $1.2 billion by 2025. The sudden shift has left many businesses scrambling to comply with the new regulations or face closure. 

Political Context 

The move to recriminalise cannabis follows the exit of the pro-legalisation Bhumjaithai Party from the ruling coalition, allowing the Pheu Thai Party to pursue its agenda of limiting cannabis use to medical purposes. Critics argue that the abrupt policy change is politically motivated and lacks adequate consideration for the industry’s stakeholders.

Implications for Australia 

Thailand’s policy reversal serves as a cautionary tale for Australia’s medicinal cannabis industry. It underscores the importance of clear regulatory frameworks and the risks associated with rapid policy shifts. For Australian companies, the situation highlights the need for: 

  • Robust Compliance: Ensuring adherence to existing regulations to maintain industry credibility. 
  • Stakeholder Engagement: Involving all stakeholders in policy discussions to build consensus and avoid abrupt changes. 
  • Market Diversification: Reducing reliance on any single market to mitigate risks associated with policy changes. 

Conclusion 

Thailand’s decision to recriminalise recreational cannabis use has significant implications for the global cannabis industry.It highlights the need for stable, well-considered policies and the potential consequences of rapid legal changes. For Australia, the situation reinforces the importance of a cautious and collaborative approach to cannabis regulation. 

For more information on medicinal cannabis regulations and industry developments, please consult with a healthcare professional or refer to the Therapeutic Goods Administration (TGA) resources.