HONG KONG, Dec 23 (Reuters Breakingviews) – Asia is beginning to warm up to the use of cannabis. Thailand legalised marijuana cultivation at home in 2022, while South Korea, Japan and Malaysia are paving the way for pharmaceutical applications. With the weed market estimated to be a $100 billion industry by 2026, according to research firm Prohibition Partners, regional businesses are preparing for demand from Asian consumers.

The Thai decision to remove cannabis from narcotics control lists is nominally to support its medical use, but this will naturally ease recreational consumption, which may boost international tourist inflows. Renewable energy firm Gunkul Engineering (GUNKUL.BK) committed 2 billion baht ($57.6 million) to building a new cannabis plantation and extraction facilities, local Thai media reported. Cannabis-leaf chicken leg snacks and cannabidiol-infused green teas made by Bangkok-listed Srinanaporn Marketing (SNNP.BK) and Ichitan Group (ICHI.BK) already line the shelves of local supermarkets.

Even Japan, known for its strict cannabis-possession laws, allows cannabidiol, an active ingredient in cannabis that does not get users high, commonly referred to as CBD. E-commerce company Rakuten (4755.T) and Pan Pacific International’s (7532.T) Don Quijote supermarkets now offer a wide range of CBD oils and gummies. South Korea was the first country in East Asia to legalise pharmaceutical cannabis, and Japan, Malaysia and Taiwan are all considering similar moves. [Read More @ Reuters]