7,000+ Cannabis Shops Shut as Thailand Tightens Cannabis Regulations

Thailand’s cannabis sector is entering a new regulatory phase following the closure of thousands of cannabis shops nationwide and the Cabinet’s approval of stricter licensing rules. Authorities have confirmed that the changes are aimed at tightening oversight, protecting public health, and ensuring continued access for patients who rely on cannabis for medical treatment.

Brief Overview of Cannabis Regulation in Thailand

Thailand removed cannabis from the list of narcotics in June 2022, becoming the first country in Southeast Asia to do so. While cannabis had already been permitted for medical use, the policy shift nevertheless led to a rapid expansion of cannabis-related businesses across the country.

However, the regulatory framework governing commercial cultivation, sale, and distribution remained limited. Oversight was largely based on earlier ministerial regulations that were not designed to govern a large-scale commercial market. As the number of cannabis shops increased, authorities began reassessing how cannabis should be regulated to address licensing compliance, consumer protection, and community impact.

Licence Renewals Drive Widespread Shop Closures

In 2025, enforcement efforts intensified as large numbers of cannabis business licences expired. According to the Ministry of Public Health, licences for 8,636 cannabis establishments expired during the year. Only 1,339 operators applied for renewal, representing approximately 15.5%.

A further 7,297 businesses did not seek renewal at all, resulting in the closure of more than 7,000 cannabis shops nationwide. As of late December 2025, an estimated 11,136 cannabis establishments remained in operation, down from a total of 18,433 previously registered businesses.

The ministry has indicated that additional closures may follow. A further 4,587 licences are scheduled to expire in 2026, with another 5,210 due to expire in 2027. All will be assessed under tighter regulatory standards.

Cabinet Approves New “Controlled Herb” Framework

Public Health Minister Pattana Promphat confirmed that the Cabinet has approved a draft ministerial regulation that classifies cannabis as a “controlled herb” for commercial purposes. The regulation governs permits for the study, research, export, sale, or processing of cannabis and is intended to replace outdated rules introduced in 2016

According to the minister, the previous framework no longer reflected the scale or structure of Thailand’s cannabis market as it currently exists. The new regulation introduces a dedicated control mechanism to strengthen oversight, protect consumers, and mitigate the impact of cannabis businesses on surrounding communities.

Where Cannabis May Be Sold Under the New Rules

Under the proposed regulation, cannabis sales will be restricted to legally designated premises. Eligible facilities are limited to:

• Medical facilities
• Pharmacies
• Licensed herbal product retailers
• The workplace of registered traditional healers

Cannabis will be dispensed under medical supervision, with doctors prescribing and authorised personnel handling distribution. Authorities have stated that Thailand has sufficient medical professionals nationwide to support this system without disrupting patient access.

Higher Standards for Facilities and Staff

The draft regulation further introduces stricter operational requirements. Licensed premises must install effective odour and smoke control systems to prevent nuisance or disruption to neighbouring residents.

Storage and quality control standards are also expanded. Cannabis must be stored in appropriately sized warehouse spaces, kept separate from other products to avoid contamination, protected from direct sunlight, and maintained under controlled temperature and humidity conditions. Products must not be placed directly on the floor.

Staffing requirements are also being strengthened. Each licensed establishment must have at least one trained staff member on duty at all times, with training provided by the Department of Thai Traditional and Alternative Medicine to ensure that professional and safety standards are met.

Professional Legal Advice

Siam Legal advises businesses and investors on regulatory compliance, licensing requirements, and operational risks arising from Thailand’s evolving cannabis regulations. Businesses seeking guidance on compliance or licensing matters may contact us for professional legal assistance.

Category: Administrative Law