Far from a pipe dream, a wide range of Thai firms are investing in cannabis, seeking to be first movers in a budding multi-billion dollar industry in Asia after Bangkok legalised use of hemp and cannabidiol (CBD), a compound that doesn’t create a ‘high’, in consumer goods earlier this year.
Cosmetics makers, drinks companies and rubber products business are all now investing in developing domestic cannabis farming and products using the plant: importing hemp and derivatives is allowed only for research purposes. Only companies that are majority-owned by Thais can receive licenses to use hemp, under government rules.
To be sure, companies involved and analysts alike agree the path to profitability could be tricky to navigate. Raw materials will be in short supply since there are only a limited number of growers with licenses, while the science of extracting compounds may prove another costly hurdle. Hemp is in demand among consumer goods makers because it is widely considered to be a superfood with health benefits, and has higher concentrations of the non-psychoactive compound CBD, now being researched for various medical applications.
Some, like plant-based food company NR Instant Produce Pcl, are choosing to buy existing cannabis operations, rather than start from scratch, counting on the buzz around the use of hemp in food to generate demand. “It changes the consumer perception when I tell them, ‘This is a hempburger’,” said chief executive Dan Pathomvanich.
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