Entrepreneurs capitalize on Thailand's legalization of kratom
- Posted on: 2021-10-20
- Views: 62
September 11, 2021
(photo by Dimas Ardian, Bloomberg)
After criminal penalties for possession and sale of kratom in Thailand were dropped in late August, entrepreneurs are already making the most of the opportunity.
Within hours, small sellers popped up on Facebook to sell kratom leaves from local sources to nearby customers.
Within a week, many had to stop advertising because demand overwhelmed supply.
Although producers can only sell domestically for now, Thailand plans to allow exports. A draft law allowing imports and exports was passed Sept. 8.
Thai dealers are positioning to sell into the U.S., the world’s most lucrative market, estimated at $1 billion.
Currently, Indonesia supplies most of the kratom sold in the U.S. Thailand could become No. 1 or No. 2 supplier to the U.S. in a year or two.
The liberalization of kratom laws in Thailand followed similar relaxation of penalties for cannabis and hemp.
The local kratom market is estimated at 600 million baht ($18 million U.S. dollars) by next year.
The export market is expected to be significantly higher, once restrictions are lifted.
“Decriminalization will not only benefit farmers but will create a whole new supply chain from upstream to downstream and will likely attract operators looking to turn it into beverages, health supplements and cosmetics,” said a knowledgeable Thai source.
Legalization is expected to lead to “reasonable regulations for growing and processing” kratom in export countries such as Thailand, said Jenn Lauder, director of marketing for Kraken Kratom, an Oregon-based vendor. “
Legalization in Thailand is getting good reviews already. Said a 47-year-old golf caddy who chews leaves to boost her energy while working in the sun: “Before it became legal, I’d have to hide the leaves under my car seat and they’d shrivel from the heat by the time I got home. Now I don’t have to worry.”
The full article is here: https://bit.ly/Thaikratom