The Thai domestic cannabis market has shown significant growth and diversification following the legalization of cannabis. A comprehensive summary is as follows:
Market Size and Growth
- The market was valued at approximately USD 80.3 million in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 58.4% from 2022 to 2030.
- Thailand’s cannabis market is projected to reach around USD 9.6 billion by 2030.
- The medical cannabis market size reached USD 122.1 million in 2022 and is expected to grow significantly, reaching around USD 1,407.96 million by 2028.
Market Segments
- The hemp segment dominated the market in 2021, accounting for a large revenue share due to its industrial uses. Hemp is used in products like oil, ropes, and textiles.
- Marijuana is projected to have the fastest growth, with a CAGR of 86.9%, attributed to increasing consumer acceptance and awareness of its health benefits.
- The CBD segment held the largest revenue share in 2021, largely due to its incorporation into food products, dietary supplements, and the cosmetic industry.
- The THC segment is also expected to grow rapidly, with its use in treating sleep problems, muscle spasms, and chronic pains.
Applications and Uses
- Industrial applications held the largest market share in 2021. This includes the use of CBD in food and beverages, wellness, cosmetics, agriculture, paper, and packaging.
- The medical segment is growing, with medical CBD being safe for treating chronic pain and neuropathic pain. The rise in clinical trials and social acceptance of marijuana is also driving this growth.
Key Players and Strategic Developments
- Key market players include PharmaHemp, MediPharm Labs, Inc., Cresco Labs, Elixinol Thailand Limited, Tilray, Extractas, BOL Pharma, Canopy Growth Corporation, and THC Thailand Group Ltd.
- Strategic initiatives such as mergers, acquisitions, partnerships, and product development are being pursued to expand market presence.
Market Challenges and Opportunities
- The market faces challenges like developing a proper regulatory framework and gaining FDA approvals for new products.
- Opportunities include the growing acceptance of cannabis in various industries and the potential for innovation in product development.
Government Initiatives and Legalization
- The Thai government’s decision to legalize cannabis has opened up new avenues for businesses and has led to partnerships like that of Charoen Pokphand Foods PLC and Gunkul Engineering PLC for developing cannabis-infused products.
Medical Tourism and Healthcare Applications
- The Ministry of Tourism and Sports, in collaboration with the Department of Thai Traditional Medicine, is promoting medical tourism related to cannabis, particularly in areas ready for cultivation.
- Over 70% of the total value of the cannabis market is in the medical and wellness industry.
