Over 7,000 cannabis shops in Thailand close due to stricter regulations and new law

BANGKOK – Over 7,000 cannabis shops across Thailand have decided not to extend their licences following

stricter regulations

and changes in marijuana policies, resulting in huge financial losses for many small business owners.

According to data from the Public Health Ministry as at Dec 28, 2025, there were 18,433 cannabis shops operating nationwide.

However, 8,636 of these shops saw their licences expire in 2025. Of those, only 1,339 (15.5 per cent) renewed their licences while 7,297 shops chose to shut down. This leaves 11,136 cannabis shops still in operation.

Experts estimate the closure of 7,297 shops could result in the loss of tens of millions of baht in investment, including costs for rent, renovations, equipment and labour.

Many of these businesses were established after the government decriminalised cannabis on June 9, 2022.

However, following the policy shift by the Pheu Thai-led government, which banned recreational use and restricted cannabis use to medical and research purposes, a new ministerial directive has made it much harder for businesses to comply.

One of the most challenging new requirements is that cannabis shops must have a licensed or registered traditional medicine practitioner on-site to operate legally.

As at February 2026, the Thai Public Health Ministry has dramatically tightened its control over the cannabis industry, marking a departure from the “wild west” decriminalisation period of 2022.

The government has officially shifted to a “medical-use only” framework, criminalising recreational use once again.

Cannabis flower is now classified as a “controlled herb” and can only be sold with a prescription from a licensed medical professional.

A valid prescription is required

to purchase cannabis with a 30-day supply limit.

Tourists can access medical cannabis only after a consultation with a Thai doctor and obtaining a medical certificate.

Also, dispensaries must employ licensed medical professionals and are prohibited from selling cannabis in certain public spaces or online.

All cannabis advertising is banned and smoking cannabis in public is illegal, with fines up to 25,000 baht (S$1,000).

Struggling to survive

A cannabis shop owner in Bangkok said their business started with an initial investment of 200,000 baht and gradually expanded, with nearly 1 million baht invested in renovations, equipment and stock.

With the new policy changes, including the requirement for specialised staff and higher operating costs, the business is no longer viable.

“At first, I believed this policy would be sustainable because the government positioned it as an economic opportunity. But now, with the new laws, our licence will expire in October 2026, and the new conditions make it impossible to renew. All the money invested now feels lost,” the business owner said.

The pressure to reconsider cannabis legalisation comes not only from the business sector but also from rising public health costs.

Dr Bandit Sorpaisan, a scientist at the Centre of Addiction and Mental Health in Canada, commented that Thailand’s cannabis policy is an example of decriminalisation without a clear regulatory framework, leading to increased health and economic costs in the long term.

Data from the Ministry of Public Health’s Health Data Center shows a more than threefold increase in cannabis poisoning cases, a near sevenfold increase in cannabis addiction and a similar rise in cannabis-induced psychosis since the policy change.

In one of Thailand’s major tourist destinations, cannabis-related emergency room visits have risen from zero to over 90 per month, with more than 80 per cent of these cases involving foreign tourists. This has had a negative impact on the tourism industry and public confidence. THE NATION/ASIA NEWS NETWORK