Newsletter October 2023

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Thai Cannabis - where is it heading?

It’s been way over a year since Thailand has decriminalized Cannabis, widely referred to ‘Ganja’ or ‘Kancha’ in the local tongue. The Thai Food and Drug Administration officially removed the cannabis plant from the Category 5 narcotics list in June of 2022. Possession, cultivation, distribution, consumption, and sales of all cannabis plant parts were made legal, the first and most probably last country in Asia for the foreseeable future to do so.

Yes, that really happened and what has followed since, has been an mighty avalanche ripping through a tropical, mangrove-jungle that is the land of smiles! Since the legalization of marijuana, Thailand's cannabis industry has grown very rapidly. According to a study conducted by the University of the Thai Chamber of Commerce (UTCC), the cannabis industry is projected to show significant growth, with its value estimated to exceed 40 billion THB by 2025. As a comparison in its first half year of legalization in 2022 the Thai cannabis industry accounted for a total revenue of roughly 900 million THB.

This newly created industry means big business and opportunities that everyone wants to take advantage of. As a cannabis connoisseur myself - cultivating, cooking and consuming the plant, I give you my personal insights and thoughts about the ‘pros’ and ‘cons’ of the Thai Cannabis industry to date - what challenges there are and what the future holds for this industry. 

Let's start with the positive aspects - effects since the rise of the this newly, booming industry last year. What are the major pro's, draws and rewards?

1. Jobs & Tax revenue

   yes, stoners are semi-responsible for newly created employment opportunities for locals and boosting the economy. If working on farms, in dispensaries as a budtender or in a medical cannabis capacity - numerous jobs have been created and that has to be a good thing, especially after COVID and the drought of tourism Thailand had suffered over that time period. It was a little light at the end of the tunnel after shit hit the fan and many local businesses and workforce lost their jobs due to the pandemic. The cannabis industry is providing a significant amount of people their current livelihood and that shouldn't be swept under the carpet. It's fantastic. Besides, the government should be pleased with additional tax revenue and increasing cannabis tourism in the country.

2. Real Estate

   How much has the real estate market benefited in all of this, seriously! Shops are opening left and right all over the country, currently counting over 12'000 registered dispensaries - that's insane! Not even mentioning all the facilities of major recreational and medical grow operations.

3. EGAT

   One million people registered for home cultivation of cannabis, one million! Obviously not everyone is growing indoors but the enough of us do and go through sky-high electricity bills - not to speak of the professional operations who need a great deal of power to run their indoor growing farms, dry and cure rooms. It's safe to say, EGAT - the state owned enterprise is doing well with this current energy consumption.

4. Quality

   The first 4-5 months into legalization were a bit brutal, very low-quality or mediocre flowers were available at first, imported American weed dominated the market and fetched astronomical prices as well as good local indoor grow. Both has changed, dispensaries are following the regulation more and more of not selling imported weed anymore and to only buy from licensed, local growers. The quality has spiked, there are immensely skilled growers in Thailand now who put out top shelf product if you look at the right places. The arrival of western heavy-hitters in the cannabis industry like Greenhouse, Cookies, Dutch Passion and others have also left their mark and helped balancing out the shop prices.

5. Variety of Products

   More and more you can see hemp related businesses offering a wider range of hemp products in the market. From textiles, therapeutic and medicinal purposes or construction, I am very excited about what is yet to come and to witness a comeback of hemp on an industrial level. Also walking into dispensaries these days, you'll be amazed by the full range of cannabis and hemp products that are available now. Cannabis and Hemp is very versatile and we finally get to see it in some of its glory!

6. Stoners Heaven

   I've been to Amsterdam a numerous of times, never been to Denver or California since it's been legalized there, heard of the scene in Barcelona or Copenhagen but nothing is like Thailand in my opinion. Amsterdam has its charm and place in my heart - no doubt but most shops there aren't very modern and comfortably decorated like they are here. In Bangkok for example you'll find great designs, comfortable smoking areas, rooftops, hidden places - the options are immense and almost every shop has great flowers nowadays. My personal favorites are Greenhouse, High Society the Original, Dutch Passion, Cookies and Four Twenty in Asok.

7. Police Resources

   Legalizing recreational marijuana has decreased the costly enforcement of marijuana laws and debilitate the illegal marijuana market. Although, the black market is still strong, the Police can actually allocate their resources and funding to other important issues or actual drug-related crimes that are a real threat to our society.

8. Medical Cannabis

   Medical use, with patients requiring a prescription, has been made legal since 2018 and you'll be able to find various hospitals in Thailand now with medical cannabis treatment programs such as BNH Hospital or Bumrungrad. With advanced medical programs and state of the art facilities, Thailand has become a viable option for alternative medicine seekers - people who are in need of such treatments coming from overseas. The medical tourism in places like Bangkok or Phuket has been strong in the past 20 years and is not slowing down. Medial cannabis is now contributing to these numbers, for example from the middle East or China - patients who come here for medical treatment and procedures.

Every medal has two sides, there is no difference with the Thai cannabis industry and the negatives that are hanging over it. These are the points of concern that I want to highlight. Not necessarily agreeing with all con's but being objective enough to have to address them when making such a list.

1. Political instability and turmoil 

   It's no secret, the political instability is the biggest challenge, fear and risk the industry is facing. There is a reason, why international companies are reluctant to invest in the Thai market due to these exact reasons and that includes most industries for many decades. From protests, coups, rigged elections or workforce strikes - Thailand is a very hot boiling pot to operate your business in. The cannabis industry is facing the never ending rumors of going back to outlaw the plant with the constant influx in the government and its representatives. It is and has always been a mess on a political level in Thailand with no stability. At the end of the day it's usually about money, influence and power. To me, there is just too much money going around for the government to do a back flip, there is too much on the line for them. So, my advice is to embrace it, open up your palms, take all the credit and all the applause you are receiving from the international media outlets for being forward-thinking and progressive.

2. Regulations

   It's been wild here, where basically everyone is doing what they want to. From selling imports to edibles and other strong extracts without any regulations on it, the industry needs some proper regulations very desperately. Effectively this will result in more tax money for the government and governmental institutions who are there to regulate the market, if done the right way. Dispensaries should be held by high practicing standards and controls, as well as growers and farms in their practices to ensure that only quality products reach the end-consumers. Grows without proper licensing and business structure should be more drastically fined and punished. Which leads us to the next point..

3. Black Market

   The black market is still going strong. Obviously, not everyone can afford the prices at dispensaries and many consumers are still looking to the black market to purchase their cannabis from. This was especially the case when everything first started and the prices in certain dispensaries were just astronomically high and greedy. Thankfully, that has balanced out quite a bit. You can't get away anymore with selling a gram for 1'000 THB or more, not even the top-shelf stuff fetches these prices. You can find quality buds now for 250 - 400 THB a gram, which should make it more frequent for consumers to skip the black market for dispensaries.

4. Market Crash

   Let's be honest, there is way much more supply, then there is demand for cannabis in Thailand. The market is heavily over-saturated with produce. Always when this happens, the market price of that product or service goes into a free fall. The prices growers are fetching these days for their hard labor and quality grow, isn't that great as they all hoped for 12 months ago when they first started. That is just the reality and many people have gotten burned by it since, making significant investments without being able to move a lot of product and not gaining enough returns to keep the operations running. Now with the approaching high-season, the industry is hoping for a boost, it is the survival of the fittest and only the well-funded and properly ran operations will still stand in a year. Markets behave like nature and will set everything into its place.

5. Big Fish Eat Little Fish

   You can see the trend already, small businesses within the cannabis industry will have it more and more difficult to make it going forward. The amount of money and resources that have been poured in are just on a different level than if you are a small scale-operation. It will be very difficult to compete over the long run with these massive billion-dollar companies.

6. Obnoxiously In Your Face

   Everywhere you can smell it, everywhere it is consumed. Tone it down, we are pissing off more and more people with obnoxious behavior and consumption in public areas. We don't want to piss on the wrong trees.

7. Carbon Footprint

   It is estimated that cannabis indoor grow CO2 emissions could range from 0.5 to 15 million metric tons per year, which is roughly equivalent to an additional 3.5 million cars on the road. The lights used to grow cannabis indoors are consuming a lot of electricity, but facilities require a lot of energy to maintain a comfortable environment for the plants by regulating humidity, temperature and airflow. That means air conditioners or heaters to maintain proper temperatures. Producers also pump carbon dioxide inside to increase plant growth. This accounts for 11% to 25% of facilities’ greenhouse gas emissions. The biggest energy use of all comes from the need to constantly bring fresh air into growing facilities. All of this outside air needs to be treated so that it is the correct temperature and humidity. This is an energy-intensive process since the air exchange rate is typically so high. All of these inputs contribute to greenhouse gas emissions.

Conclusion

The positives outweigh the negatives for now. Is it perfect? Far from it but as every other new industry, you hit the ground running, you learn, you fail, you grow and you evolve. I think it's great to see the community that is building and how cannabis businesses collaborate and bring people together. With growing understanding and public knowledge, this industry is here to stay. Personally, I would like to bring a bit more class and finesse to the scene with the cannabis cuisine that I'm specialized in. 'Ganjalicious' is my interpretation of what can be done with cannabis in a fun, elegant and delicious way.

Interested to come to our private table in Sathorn?

Below the October dates for 'Ganjalicious' River View!

For all info click 'Ganjalicious'

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