The cannabis market in Japan is expanding rapidly due to regulatory changes

Explosive Growth in Japan’s Cannabis Market

Japan experienced a sixfold expansion in its cannabis market over a four-year period, reaching ¥24 billion ($154 million) in 2023. This growth is anticipated to accelerate following the December amendment of cannabis laws, according to a report from market research firm Euromonitor International. The surge in sales of products containing CBD (cannabidiol), a marijuana-derived compound, is driven by increasing demand for items that provide relaxation, aid in sleep, and offer stress relief. Euromonitor International estimates that there are currently 588,000 CBD users in Japan.

CBD Demand Surges Following Legal Amendments

CBD is often viewed by many as a substitute for tobacco and alcohol, commonly used for relaxation while watching movies or TV shows, the firm noted. Despite the trend towards legalization or decriminalization of marijuana in some countries, Japan upholds a strict zero-tolerance policy, forbidding possession or sale of the substance.

Navigating the Legal Landscape of CBD Products in Japan

While the legality of products containing cannabinoids, compounds derived from cannabis, has been somewhat unclear, Japan has not regulated CBD extracted from matured stalks and seeds. An increasing array of CBD-containing products are making their way onto the market, frequently sold as dietary supplements, cosmetics, lotions, and oils. However, there have been instances of trace amounts of THC being detected in products claiming to solely contain CBD. Additionally, products utilizing synthesized THC derivatives have been on the rise, leading regulators to grapple with a growing array of derivative products.

Japan’s Legislative Shift: Paving the Way for CBD Integration

In a significant development, Japan’s parliament passed a bill in December to amend the 1948 Cannabis Control Law, marking the first step towards decriminalizing medical products derived from cannabis. The revisions aim to provide clarity on the use of CBD in Japan and facilitate its legal application in various sectors like medicine, health, beauty, beverages, and edibles. Aya Suzuki, a senior analyst at Euromonitor International, emphasized the potential for large businesses to enter the market with food, beverages, and dietary supplements containing CBD. It is crucial for the industry to collectively establish guidelines to eliminate illicit products and ensure compliance with government regulations for the CBD market to flourish in Japan.