An opinion piece by Gaurav Segal, CEO of Siam Green
Where We Started and Where We Are Now
Cannabis has had quite the roller coaster ride in Thailand. Initially, it was introduced with very strict measures where companies needed to partner with educational, government, or medical institutes for growing and researching CBD. THC was much more restricted purely for government and medical facilities to research and was being dispensed through Traditional Thai Medicine clinics during this time.
All of this was happening right as COVID-19 was becoming prevalent – once it hit, the Thai economy, relying hugely on tourism and foreign direct investment, took a serious blow. June 9th, 2022 came almost like a knight in shining armor when cannabis (THC) was suddenly de-listed as a narcotic. Not only that, but the government said people could grow it in their homes [check if the dates align and are correct] for personal use, private companies could grow and sell THC flower with the right licenses which were (and still are) extremely easy to acquire. Not only that, but the requirements to open a store shocked almost everyone, including those who opened stores! All you needed to have was a rental agreement, 3,000 baht (cost of license), and a purchase order or agreement to buy flowers from any farm. Possibly a few more documents, but fundamentally this was it.
Within under 3 years, the number of cannabis shops surpassed the number of 7-11’s, which Thailand already has been known to have a huge number of. With the lack of laws, regulations, and enforcement combined with the low barrier to entry, the industry attracted all sorts of people, including a large amount of people who decided that the law didn’t matter, and sold whatever they wanted, legal or illegal, did not urge customers not to consume in public as was (and still is) the law. Public opinion quickly started to sway against cannabis, and the government then decided that they needed to do something about it.
The Regulatory Pivot Nobody Expected
- Industry of as mid-2025: the rules that rewrote the Thailand cannabis landscape
- Medical-only framework and what it actually means for operators
- Prescription requirements and the compliance burden on dispensaries
- How you as a dispensary owner deal with higher costs
Again, out of nowhere – the government announces cannabis is medical again and stores require prescriptions. So many stores start teaming up with doctors and offering prescriptions. Once again though, the number of stores that don’t follow the law exceed the number of stores that do – so now we find ourselves in a position where the government talks about requiring the point of sale to be either a licensed herbal shop, or a formal clinic. Stores begin shutting down, or can’t renew licenses because their paperwork was not in order, or just cannot be bothered to deal with the constant changes, increased cost, harassment from police, surprise inspections, and so on.
From a personal standpoint, I have extremely mixed emotions about all of this. My mind trying to make sense of it: Should businesses follow the law in order to raise and elevate the image of cannabis and to support its destigmatization? Absolutely. Did the government make a dire mistake in making it too easy to enter the business? I personally believ so. Is it a problem that the majority of those in the consumer-facing side of the industry are breaking the law and not having it enforced? Absolutely. Is trying to collect everything and shove it back into Pandora’s box a dream that will only clean up the face, but shift the business to the black market? 100% absolutamente. I believe strongly that there is a middle ground to this “clean up” that seems to be in process. For example: background checks, education as part of sales license process, supply chain & safety regulations to ensure consumers are purchasing safe, mold-free product that will not harm them. Make it about safety rather than difficulty. Raise the standards, require more things that make sense for the licenses, or don’t issue new ones. If cannabis which does not cause aggression, accidents, impulsiveness, while severely harming livers, brains, and other vital organs requires a doctor’s prescription, then why on Earth is alcohol available at all 7-11’s with nothing but an ID check?
The Numbers That Actually Matter
- What metrics, numbers, and trends that matter to you and that you look out for
- Medical cannabis vs. recreational: where the real sales are for SG
- Southeast Asia as the next frontier for Thai cannabis exports and how SG is pioneering
Now that my rant is over – let’s go into what actually matters. Is cannabis here to stay, or is it dwindling? You will hear all kinds of answers to this. It’s hard for me to remain unbiased here as I’m a heavily active member of the industry, but I have reason to tell you why this is only the beginning of what will likely be explosive growth.
- Consumption has not decreased. Demand will always find its way to a supply, black, white, or grey. Medical, recreational, whatever you want to call it, people who want it will get it.
- Thailand doesn’t function the way most markets do. The news may keep falsely saying that Thailand has made cannabis illegal again, but anyone here knows that’s never happened.
- Cannabis education is low – the majority of people who are “against” it actually don’t know about cannabis – and history and data will show us time and time again that once people are educated about it, are at the very least, not against it, but either neutral or positive towards it.
- If your store is well located and run the right way, chances are sales have not changed too much, or at least are proportional to the amount of tourists passing through.
- Exports are increasing on a month on month basis from farms who are growing. Production continues to increase.
What It Actually Takes to Stay Afloat
- Importance of building a trusted brand
- Community trust as a competitive moat
- Quality, compliance, and consistency: SG’s three keys to business success
So what happens next? Ideally, the industry matures. We already see signs of it from the streetfront. Grungy, hole in the wall shops that store owners use as their revenue-generating living rooms gradually upgraded to or got replaced by more professional retail experiences. Farms are gradually upgrading and getting GACP licenses to be able to stay in business (both export and local retail require it). The customer journey continues to improve, and more and more attention gets paid to quality and supply chain regulation, naturally, as farms and distributors compete on service and price justification.
Companies like us pay a lot of attention to building a trusted brand – this is what sets us apart. A customer or patient can walk into any branch of Siam Green and have the exact same journey. Every member of staff receives the same ongoing cannabis education, customer service training, and personal & professional support. These are just some of what Siam Green offers in our aim to build a trusted brand.
You cannot build trust without being trustworthy. Consumers are smart and will see right through it. The way to build that kind of trust is actually a lot more simple than many may think: remember that the consumer walking into your store to ask questions and to buy products, are the most important people in the entire equation. You must protect them at all costs. Protect them from bad products, from misinformation, disharmony, and most importantly, from dissatisfaction. The next are your retail frontliners, usually called budtenders in the cannabis industry. In your organization, these are the soldiers that are out there, collecting information, handling negotiations, representing you and your brand, filtering through complaints that people have about the weather, and everything in between. They are the ones learning about what the consumers want, what they don’t like, what motivates them, and why they chose your store over the thousands of others. They must be kept happy as well because if they aren’t, this too shows right through to the customer. Remember that the percentage of nonverbal communication is higher than that of verbal, and some of it is completely out of our control.
Growing or Shrinking? My Honest Answer
Growing or Shrinking? My Honest Answer
- Why “shrinking market” and “maturing market” are not the same thing in your opinion
- Where you see Siam Green and the industry in the next three years
- The case for staying in, doubling down, and building for the long game
- What exciting upcoming plans you have for SG (new merch, designs, etc)
- Any TCN updates or add ons you want to include
This kind of culture is powerful, and the balancing act is in creating harmony for the front liners while keeping them motivated, while at the same time doing this for your consumers. Master this and you’ve mastered the most important parts of staying ahead of the majority of your competition, and securing your future in the industry.
As I discussed in a previous article, the reason I started the Thai Cannabis Network alongside Siam Green, is because I strongly felt an urge to unite people in this industry – remove the “turf war” mentality, and work together to build something that is so new and has so much to grow. The community has grown to be strong, supportive, and serious information is shared on a daily basis.
About Siam Green
At Siam Green, we don’t just sell cannabis but we create experiences. Our certified budtenders are trained to help you find exactly what you’re looking for, whether you’re a first-timer or a seasoned enthusiast. They’ll walk you through terpene profiles, effects, and proper dosing so you can make informed choices that match your needs.
With five locations across Bangkok (Phrom Phong, Nana, Silom, Chinatown) and Koh Samui (Chaweng Beach), we’re never far from wherever your Thai adventure takes you. Each branch offers the same premium quality, knowledgeable staff, and welcoming atmosphere that’s made us Thailand’s trusted cannabis dispensary since 2022.
Stop by any Siam Green location and learn more about Thailand’s cannabis industry.
Can’t make it to a branch? Connect with us on LINE (@siamgreenco).
