Thailand’s once-booming cannabis industry, valued at over $1 billion, is facing an uncertain future after the government reintroduced a ban on recreational use in June 2025. The abrupt policy shift has sent shockwaves through thousands of cannabis shops across the country, many of which now fear they’ll be forced to shut down or operate illegally.
Since the landmark legalization of cannabis in 2022, dispensaries have flourished, particularly in tourist hotspots like Bangkok’s famous Khao San Road. Colorful storefronts offering various strains and infused products became a staple in the area, catering to both locals and tourists seeking a legal high. But under the new rules, cannabis can only be purchased with a prescription from a licensed medical professional, drastically narrowing access and reshaping the market overnight.
The government has yet to finalize the operational details, leaving business owners scrambling for clarity. Some reports suggest dispensaries will need to re-register as medical clinics, a costly and complex process that many small businesses simply can’t afford.
Natthakan Punyathanaworakit, a cannabis entrepreneur in Bangkok, has already closed one of her three shops due to mounting uncertainty.
The shift in policy follows political turmoil, with the Bhumjaithai Party — originally a champion of cannabis reform — exiting the ruling coalition. Health Minister Somsak Thepsutin defended the new restrictions as necessary for protecting public health, especially young people. However, critics argue the move is more political than protective, and disproportionately harms small operators.
Entrepreneurs like Chokwan Chopaka fear the reforms won’t actually improve safety. She notes that even previous regulations were poorly enforced, putting compliant businesses at a disadvantage. “When there’s no enforcement, there’s just no way I can compete,” she said.
The repercussions also extend to farmers and workers who have invested heavily in the cannabis sector. Oler Silasilarat, who works at Hygge Flower, expressed concern for small growers now burdened with expensive licensing requirements. “They have knowledge, but they cannot grow anymore because they cannot compete with big companies,” he said.
Tourist-focused shops have already seen a drop in foot traffic, as visitors are unsure of the new legal landscape. Thammarat Siritanaratanakul from iStoned, a cannabis store on Khao San Road, noted, “Tourists, they’re scared.”
For now, Thailand’s cannabis pioneers are caught in limbo, trying to navigate shifting laws and uncertain futures in a rapidly changing legal environment.