Pioneering Thai medical cannabis, hemp company nurtures global ambitions
88 Cannatek Co, one of Thailand's first firms to enter the medical cannabis and hemp business for holistic health and wellness from upstream to downstream, has launched its first product and service with the goal of elevating the country's cannabis and hemp industry to the level of a global player.
Pornprasit Sibunruang, the managing director of 88 Cannatek, told a press conference on Wednesday that Thailand's decriminalisation of cannabis, as well as the removal of marijuana and hemp from the narcotics list, has created long-term investment opportunities in the use of cannabis and hemp for health and wellness.
"Thailand is the first and only Asian country that allows the cultivation, extraction, production, and the use of CBD derived from hemp. ther countries, such as Japan, Malaysia, and South Korea, only permit use of the plant but not to grow it,” Pornpasit stated.
This regulation provides significant opportunities and competitiveness to the country. After three years of importing hemp seeds and growing them, the company has reached the final stage of its comprehensive business model, “Planting — Extracting — and Processing”, with the introduction of the CannBE Cosmetique product line and the CannaHealth Clinic, which cater to consumer needs for alternative herbs, he said.
This facial care product will contain cannabidiol, or CBD, a hemp extract that is non-psychoactive and has medicinal properties that are beneficial to the body such as relieving anxiety, increasing appetite, inducing sleep, fighting inflammation, reducing wrinkles, and many others.
Meanwhile, the company has entered the wellness industry with the launch of “CannaHealth”, the first comprehensive medical and holistic healthcare clinic that incorporates cannabis and hemp into Thai traditional medicinal treatments for health and beauty.
The product will be available at the end of October, and the clinic will officially open in mid-November.
He said that the company plans to sell facial care products under the brand “CannBE”, both through the brand’s online platforms, such as Facebook, IG, Line, or TikTok, and through distributors.
He added that 88 Cannatek's marketing strategy is to gain a 40 per cent domestic market share and a 60 per cent export market share in raw material, hemp flower-derived CBD oil, and products such as cosmetics, herbs, and dietary supplements.
Customers from 7-8 countries, including New Zealand, United Kingdom, Germany, Vietnam, Malaysia, Japan, the United States, and Turkey, have contacted the company to purchase all of these products.
"We may begin to see the revenue from selling hemp flowers and seeds to the contract farming companies, but we aim higher. We have started soliciting funds for phase 2 expansion through Sinwattana Crowdfunding, a platform that has been licensed by the Office of the Securities and Exchange Commission of Thailand," said Pornpaist.
He estimated that by 2023 the company would have a revenue of one billion of baht from more than 1.2 million units of products that would gradually be launched onto the market in the fourth quarter of this year.
He noted that according to a Krungsri Bank report, cannabis and hemp have long been used for medicinal and commercial purposes around the world. It is estimated that the market size is currently 800 billion baht and would grow to 1.3 trillion baht by 2025. The Thai market for hemp alone is expected to increase from 600 million baht today to 50 billion baht in 2025.
He said that hemp and cannabis would be widely used throughout the world, so it is time for the company to develop their technology for growing and extracting these new economic crops, as well as educate the public about the true benefits of hemp and cannabis.
