r/CannabisThailand Newsletter - Issue #33

Nose dive

Feb 19, 2023

Sawadee Everyone,

This week the average prices for a gram of weed hit 535 baht. The previous lowest price was 541 baht in July of 2022.

As I’m fond of saying, Thailand is doing a speed run through the cannabis industry lifecycle other legalized countries have seen. Without too much of a burden on licensing and the relatively low cost to open a shop the market seems to be racing through the whole boom and bust cycle.

While “bust” may sound like a bad thing, it’s a part of the normal business cycle. That is especially true in new industries.

The Dotcom era had a boom and bust cycle and there is more money being made today in the online sector than there was when the bubble burst on the Dotcom craze in 1999.

The stock market has bull and bear markets, real estate markets have buyer’s markets and seller’s markets. These are just variations on a boom and bust cycle.

In the US and Canada many parts of the industry are struggling to figure out a business model that can survive with very low cannabis prices.

Thailand’s cannabis industry may find itself in a similar situation in the coming months as price contraction for cannabis leaves less room for markups.

We definitely live in some strange and exciting times.

Cheers,

u/CannabisThailandMod