Over 7,000 cannabis shops shut as tighter laws reshape Thailand's marijuana market

Data from the Ministry of Public Health reveals a stark contraction in the industry. As of Dec. 28, 2025, Thailand had 18,433 licensed cannabis shops. However, of the 8,636 licenses that expired last year, only 1,339 outlets, approximately 15.5%, chose to renew. Consequently, 7,297 shops have ceased operations, leaving 11,136 active dispensaries, as reported by The Nation.

The mass closures follow the Public Health Ministry's official move last year to restrict cannabis use exclusively to medical purposes. The new regulatory framework aims to prevent misuse and ensure the plant's benefits are channeled solely for health.

Under the revised rules, access to cannabis now requires an authorized medical prescription, limited to a 30-day supply. Patients must obtain their treatment through a licensed medical professional.

Tourists face similar hurdles; visitors can only obtain medical cannabis after being examined by a licensed Thai doctor and receiving a medical certificate.

Operational standards have also been tightened. Dispensaries are now required to have qualified medical personnel on staff and are strictly barred from selling cannabis online or in designated public areas.

All forms of cannabis advertising are prohibited, and public consumption remains illegal, with offenders facing fines of up to 25,000 baht (US$795).

This restrictive environment marks a sharp pivot from 2022, when Thailand became one of the first countries in Asia to decriminalize the recreational use of cannabis.

Since then, tens of thousands of shops and businesses selling cannabis have sprung up across Thailand, many of them located in the country's tourism hubs.

The Thai Chamber of Commerce had previously estimated that the industry, including medicinal products, could be worth $1.2 billion by 2025, according to Reuters.

However, the reality of 2026 is one of consolidation and loss. Industry analysts estimate that the wave of closures could wipe out tens of millions of baht in investment, covering sunken costs such as rent, renovations, equipment, and staffing. For many entrepreneurs who entered the market during the initial boom, the regulatory pivot has proven fatal to their businesses.