CBD is increasingly gaining acceptance in Thailand and different parts of the world. This means that there is an expansion and possibly an explosion of the CBD market across the globe. It is good news for investors and other stakeholders in the CBD industry because there is more opportunity to grow the business and make profits.
One of these new emerging markets would be Thailand. The legalization of cannabis has a lot to do with this sudden interest in the CBD trade. The country’s investors are rushing to be among the first contributors in the Asian market. As things seem, other countries in the region may soon follow suit.
However, speculation aside, are there any other indicators that mark Thailand as a leader and potential hub for cannabis business growth? If so, these are the markers that people in business and investors need to keep their eyes on. This article attempts to explore some of the potential reasons why Thailand may be the next big investment block for CBD investors. It will also reveal whether or not you should consider putting your money there or looking elsewhere for now. But, if you’re a user who would love to buy CBD edibles while in Thailand, click here for more info.
The Numbers Don’t Lie
One of the things that seem to work wonders in every form of investment is inviting numbers. You may want to understand that it is a fundamental and somewhat unspoken principle for investors to follow what the numbers say. If the profit margins are high and the risk levels are good enough, many investors would want to venture into this path.
Such has been the case with Thailand’s cannabis industry. Experts reveal tremendous growth in the past few years, making the sector ripe for more investment. Performance indicators are also interesting to look at.
A perfect example would be the Thailand medical cannabis market which attained a value of US$ 26.3 Million in 2020. This is very enticing to investors since it proves enough potential to put their money on the line. What’s more, the market and the industry, in general, are expected to experience an explosion as forecasts indicate a constant growth of up to 32 percent more between 2021 and 2026.
Companies continue to track the impact of the pandemic and another indirect trigger that may affect the development of the industry moving forward. All things kept constant; there is a vast potential for growth in this sector and region, which is why an investor should consider moving their money here.
Thailand’s Investors are Looking this way Too.
If the numbers are not convincing enough, you may want to look at what other big industry players are doing. Sometimes, especially if you are a small-time player or just starting in the industry, you may observe what other players are doing. Whenever there seems to be a massive shift of significant industry players, then the chances are that this is the direction you also need to look at.
There has been a lot of talk about the potential of cannabis becoming the next big Thailand economic plant in the next few years. Companies are strategically positioning themselves to be at the right place when this finally happens. Major companies in the world have invested in systems to ensure top-notch quality cannabis product manufacturing. They are also investing in quality checks, especially for the medical cannabis niche. Logically and ideally speaking, not many investors will make such bold moves if they have not anticipated positive growth in the industry.
To make this argument even more solid, there is a shift seeing a lot more world investors support world marijuana markets research. These efforts are geared towards making marijuana more acceptable as a healthy alternative for treating specific illnesses, thus boosting the needs.
Government Legalized Cannabis
Overall, one of the most significant contributing factors that may have led to the current growth of the cannabis industry in Thailand is that the government legalized the product. Even though the legalization follows specific guidelines, it is still a big step for the industry. Currently, 99% pure CBD oil is accepted. This means that it must contain not more than 0.1% THC.
It is a win for investors since old extracted from hemp and cannabis is no longer considered a narcotic under Thailand’s Narcotics Act of 1979. One may argue that the Thai government’s standards are a little more stringent, considering that 0.3% THC levels are acceptable in all CBD products in the US. Investors know that this is a big move by the government as it is better than the complete restriction and criminalization of the product. It also shows that there may be room for future negotiations if need be.
The important thing currently is that such legalization opens up the country and allows the over 70 million population to explore medical cannabis with THC. Such a vast market potential has significant implications on the investors and the industry at large.
License to produce cannabis oil
However, even as you celebrate the small wins, there are a few other details that investors need to remember. All forms of importation, exportation, sale, and possession of cannabis extracts will be highly regulated.
There are governing laws that require manufacturers to have a license to produce cannabis oil extracts. Medical use of the product also seems to happen only when prescribed by a trained medical doctor. When it comes to foreigners investing in the industry, the Thailand Ministry of Public Health always facilitates global investors’ contribution to this industry.
While currently no importation of CBD oil made from hemp or cannabis is allowed, Thais will have to wait at least five years, until 2024 when they can freely access CBD oil. The chances are that these measures were put in place to protect the country’s interest and allow for its cannabis industry growth and sector to thrive without outside influences.
Many cannabis markets in the world continue to open up as governments and governing institutions legalize the product. Thailand has not been left behind in this. Investors should consider looking into Thailand’s cannabis industry as the next big platform for their growth.
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