Thailand’s fledgling cannabis retail sector has undergone a dramatic contraction following the rollout of a stricter regulatory framework that has led to the closure of more than seven thousand cannabis shops across the country.

Data from the Public Health Ministry indicate that as of late December 2025, licences for 8,636 cannabis outlets expired during the year, yet only around fifteen point five per cent of those businesses applied to renew.

As a result, an estimated 7,297 shops chose not to renew their permits and have ceased operations, reducing the number of active cannabis-related establishments nationwide to approximately 11,136.

The closures mark a significant shift from the rapid expansion of the industry after cannabis was decriminalised in mid-2022, when businesses proliferated in towns and cities nationwide to cater to recreational demand and emerging markets.

The Cabinet-approved regulatory overhaul introduced stricter controls designed to enhance oversight of cannabis commercial activities, protect public health, and formalise an industry that had previously operated with limited legal constraints.

Under the new rules, valid licences will only be issued or renewed for designated facility types — such as medical clinics, pharmacies, herbal product retailers and traditional healers’ workplaces — and sellers must ensure prescriptions are issued by authorised medical professionals before products can be dispensed.

Additional requirements include improved storage and operational standards, such as effective odour and smoke control systems, separation of cannabis products from other goods, and staffed operations with personnel trained under the Department of Thai Traditional and Alternative Medicine.

Public Health Minister Pattana Promphat has emphasised that reforming the regulatory regime is intended not to undermine patient access to medical cannabis but to ensure that legitimate users can continue to obtain treatment without disruption even as the broader commercial market contracts.

Authorities have also reiterated that hospitals and qualified practitioners nationwide have the capacity to serve patients’ needs as the industry adjusts to the new standards.

Looking ahead, thousands more licences are due to expire in the coming years, with 4,587 scheduled for 2026 and 5,210 in 2027, indicating that the consolidation of the cannabis sector may continue as operators assess the viability of meeting the heightened criteria for legal sale and distribution.