Thailand’s Cannabis Industry Faces Major Overhaul with New Regulations

Thailand’s rapidly growing cannabis industry is on the brink of a seismic shift as stringent new regulations threaten to shutter up to 12,000 cannabis flower shops by the end of 2025. The proposed rules, driven by the Department of Thai Traditional and Alternative Medicine (DTAM), aim to transform the sector into a strictly medical framework, mandating the presence of qualified professionals at retail outlets and restricting sales to prescription-only transactions. As the government tightens its grip on a market that exploded after decriminalization in 2022, the changes raise critical questions about economic impact, public health, and the future of small businesses.

A Regulatory Revolution

The forthcoming ministerial regulations, expected to be finalized after public hearings concluding on July 12, 2025, will require cannabis flower shops to operate as clinics or healthcare facilities. This overhaul is designed to ensure that cannabis use aligns with medical guidelines. In the future, these shops will have to become clinics or healthcare facilities. The 18,000 existing shops nationwide, 12,000 face license expirations by year-end and must adapt to the new model to renew their permits.

Under the proposed rules, only professionals from seven designated fields—General Medicine, Thai Traditional Medicine, Applied Thai Traditional Medicine, Dentistry, Pharmacy, Chinese Traditional Medicine, and Folk Doctors—will be authorized to issue prescriptions. Each prescription must include the professional’s license number, alongside detailed patient information such as name, age, nationality, ID number, and diagnosis. Quantities will be capped at a 30-day supply, and shops must retain these records for monthly inspections by health authorities.

Current guidelines further limit the scope of permissible use. Modern medical protocols allow cannabis for just four conditions: epilepsy, nausea and vomiting from cancer treatment, neuropathic pain, and muscle spasticity. Thai Traditional Medicine covers eight symptom groups, including headaches and cancer-related pain. However, only the Medical Council and Thai Traditional Medicine have finalized their guidelines, leaving the other five professional groups unable to issue prescriptions until their frameworks are complete. This interim restriction means many shops may struggle to comply immediately, relying solely on general medical doctors or traditional practitioners.

Economic Fallout for Small Businesses

The economic implications of these regulations are profound. Thailand’s cannabis industry has boomed since decriminalization, with small retailers and entrepreneurs capitalizing on a relatively lax regulatory environment. The sector has become a significant source of income for thousands, particularly in urban centers like Bangkok and tourist hubs such as Phuket and Pattaya. However, the requirement to employ on-site medical professionals and transition to a clinic model could impose prohibitive costs on small operators.

Industry analysts estimate that the cost of hiring qualified staff and retrofitting shops into healthcare facilities could range from 500,000 to 1,000,000 Thai Baht (US$14,000 to US$28,000) per establishment, based on exchange rates as of May 24, 2025. For many of the 12,000 shops at risk of closure, such expenses are simply unfeasible. “This is a death sentence for many small businesses” said a cannabis retailer in Bangkok, speaking on condition of anonymity due to fear of regulatory scrutiny. “We’ve built a livelihood on this trade, but hiring a full-time doctor or transforming into a clinic is beyond our means.”

The potential closure of two-thirds of existing cannabis shops could also ripple through related sectors, including agriculture and tourism. Farmers cultivating cannabis for retail supply may face reduced demand, while tourist-driven sales—a key revenue stream in areas like Chiang Mai and Koh Samui—could dwindle if access becomes overly restricted. The government’s push for medicalization, while aimed at curbing recreational use, risks undermining an industry that has contributed millions to the national economy.

Public Health Priorities vs. Accessibility

From a public health perspective, the regulations are framed as a necessary step to ensure safe and controlled use of cannabis. The DTAM’s insistence on prescription-only sales and professional oversight reflects broader concerns about unregulated consumption, particularly among youth and tourists. Smoking cannabis on-site at shops will be explicitly banned, and patients are advised to retain prescription copies to avoid legal issues when possessing larger quantities.

Yet, critics argue that the stringent requirements could limit access for those who genuinely rely on cannabis for medical relief. With only two of the seven professional groups currently equipped to issue prescriptions, patients in rural areas or smaller towns may find it difficult to obtain the necessary documentation. “The intent behind medicalization is sound, but the execution feels rushed” said a public health advocate based in Ho Chi Minh City, who monitors regional health policies. “If the infrastructure isn’t in place to support patients, this could backfire.”

Moreover, the removal of a predefined list of 15 diseases or symptom groups from the prescription guidelines introduces further ambiguity. While professionals can now specify symptoms based on their field’s standards, the lack of uniformity across disciplines may lead to inconsistent application. Until all seven groups finalize their guidelines, the system remains incomplete, potentially exacerbating confusion for both patients and retailers.

Political and Cultural Dimensions

The regulatory overhaul also carries political weight. Thailand’s decriminalization of cannabis in 2022 was hailed as a progressive move, aligning with global trends toward liberalization. However, the subsequent proliferation of recreational use sparked backlash from conservative factions and public health officials, prompting the current clampdown. The balancing act between economic freedom and regulatory control reflects broader tensions within Thai politics, where progressive reforms often clash with traditionalist values.

Culturally, the integration of Thai Traditional Medicine into the regulatory framework underscores the government’s commitment to preserving national heritage. By empowering traditional practitioners alongside modern doctors, the policy nods to Thailand’s rich history of alternative healing practices. However, it also raises questions about capacity—whether enough trained professionals are available to meet the demand created by the new rules.

Public hearings on the draft regulations, ongoing until mid-July, offer a glimpse into the diverse opinions shaping this debate. While some stakeholders welcome the emphasis on medical oversight, others decry the potential loss of livelihoods. Sentiment reviewed on popular Thai social media, reveal a polarized sentiment, with users split between supporting stricter controls and lamenting the impact on small businesses. “Cannabis was supposed to be our economic boost, not a bureaucratic nightmare” wrote one user from Bangkok, echoing a frustration shared by many.

Looking Ahead: A Transformed Industry?

As Thailand navigates this regulatory pivot, the future of its cannabis industry hangs in the balance. The transformation of shops into clinics may succeed in aligning the sector with medical priorities, but at what cost to economic vitality and patient access? With the drafting process still underway—pending approval from the Committee for the Protection and Promotion of Thai Traditional Medical Wisdom, the Minister of Public Health, and ultimately the Cabinet—there remains room for adjustments based on public feedback.

For now, the 12,000 shops facing license expirations stand at a crossroads. Their ability to adapt will determine whether they survive as legitimate healthcare providers or disappear under the weight of compliance costs. Meanwhile, patients and advocates watch closely, hoping for a system that prioritizes both safety and accessibility. As the Royal Gazette prepares to publish these transformative rules, one thing is clear: Thailand’s cannabis experiment is entering a critical new phase, with far-reaching implications for the nation’s economy, health system, and cultural identity.