What was recently celebrated as a vibrant “Weed Oasis” in Southeast Asia, Thailand’s burgeoning cannabis industry, now faces an abrupt and precarious future. After a period of open-ended decriminalization since 2022, the Thai government has moved to severely restrict cannabis use, effectively ending the recreational market and leaving thousands of businesses in limbo. This dramatic policy shift has cast a long shadow over the once-thriving sector.
The initial decriminalization transformed Thailand into an unexpected “Weed Oasis,” with thousands of dispensaries, cafes, and related businesses blossoming nationwide. This rapid expansion, attracting both tourists and local enthusiasts, saw the industry boom, contributing significantly to the economy and creating a unique niche in the global cannabis landscape.
However, the lack of clear regulations on recreational use led to growing public health concerns, particularly regarding youth access and social impacts. This mounting pressure from conservative factions and public health advocates ultimately prompted the government to re-evaluate its liberal stance, aiming for a more controlled environment.
Effective June 26, 2025, the Thai government reclassified cannabis flowers as a “controlled herb,” making recreational use largely illegal and mandating that sales are strictly for medical purposes. This means that to legally purchase cannabis, consumers now require a prescription from a licensed medical professional, dismantling the free-wheeling “Weed Oasis” model.
The immediate impact on the estimated 18,000 existing cannabis businesses is immense. Many dispensaries will be forced to shut down unless they can transition into regulated medical clinics, a costly and complex process involving strict licensing and the presence of on-site doctors. This will undoubtedly lead to significant market consolidation.
The shift also has profound implications for tourism. Thailand had become a magnet for “cannabis tourism,” drawing visitors seeking a more relaxed approach to the plant. With recreational use now prohibited and stricter enforcement measures, this particular tourist draw is expected to diminish considerably, affecting local economies.