"The cannabis industry in Thailand is flourishing, offering prospects for entrepreneurs looking to enter the market. Yet, like any growing industry, some challenges must be addressed to ensure the success of businesses," says Deron Caplan, Senior Consultant at Sostanza. In this article, Deron will explore the unique advantages of the Thai cannabis market and draw valuable insights from mature cannabis markets like Canada and the United States.
"At Sostanza, we've been at the forefront of supporting Thai growers in establishing efficient, profitable, and sustainable cultivation businesses. Our experience has revealed the intricacies and distinctive benefits of the industry in this beautiful country, presenting an immense growth opportunity for those who take the plunge," Deron says.
Deron Caplan
Navigating evolving regulations
Deron explains that while cannabis production and sales in Thailand have surged, the industry's regulations are evolving, often vague and unclear. "It is only a matter of time before regulators introduce more defined and stringent rules concerning product safety, traceability, taxation, and consumption. When thoughtfully applied, these new regulations can offer advantages to cannabis businesses and consumers."
According to Deron, there is an important need for stricter controls on product quality, including mandatory testing for harmful heavy metals, pesticides, microbes, and accurate measurement of cannabinoids. "Pesticide use in Thai cannabis farms currently lacks clear guidelines, posing risks to public safety and local ecosystems. To mitigate these concerns, we recommend Thai growers adopt established pesticide use guidelines from mature markets such as Canada, Oregon, Washington State, and California. While product testing and responsible pesticide use may present added costs and challenges, they are forward-thinking practices that build consumer trust by ensuring product safety and consistency and minimizing environmental impact. By embracing these practices early, Thai entrepreneurs can position themselves as industry leaders before regulations become more strict."
A different take on THC
"In our interactions with Thai consumers, dispensaries, growers, and wholesalers, we've noticed that the local market places less emphasis on high THC content compared to Western markets," Deron says. "Instead, Thais care more about how the cannabis smells, looks, and makes them feel. Mature markets often view THC as the primary indicator of cannabis quality due to its psychoactive properties. Still, experienced users know that higher THC does not necessarily equate to a better or more enjoyable experience."
Factors such as terpene content, cannabinoid ratios, and product quality substantially shape the cannabis experience. "The Thai market's preference for these attributes offers a unique opportunity for local entrepreneurs to focus on cultivating distinct cannabis strains that cater to the local market and entice tourists seeking novel experiences. As enthusiasts, it's been our pleasure to assist Thai growers in sourcing these unique strains," Deron says.
A promising future
According to Deron, Thailand's cannabis industry holds vast potential for growth. "Thai business owners can be leaders in this new industry by learning from older markets and doing things the right way from the start. With favorable regulations on the horizon and a local market that values quality over high THC content, daring innovators have many opportunities. These forward-thinking individuals will help ensure that Thailand's cannabis industry continues to flourish safely, efficiently, and sustainably."
Supporting Thai growers
The Sostanza team is dedicated to supporting growers throughout Thailand in designing, constructing, and operating facilities that meet or exceed Western standards. "We are committed to helping growers produce cannabis that is not only clean and sustainable but also unique and highly desirable to vendors and wholesalers. Our team is active in Thailand and will participate in the Asia International HEMP Expo on November 22-25 and the Phuket Cannabis Cup on December 1-2. We are eager to connect with other industry professionals and share our knowledge and expertise with those interested in delving deeper into the world of cannabis cultivation. Contact us here if you want to work with us or learn more about our services."
For more information:
Sostanza Global
www.sostanzaglobal.com