Japan's CBD companies are scrambling to find producers of hemp-derived cannabinoids with extremely low THC levels after strict government restrictions put an estimated $170 million industry in deep crisis. .
“Many Japanese CBD brands are suffering right now because THC limits are incredibly low,” one company executive told HempToday. “These brands are looking for manufacturers that can produce quality CBD, CBN, and CBG ingredients with less than 10 ppm (THC).”
Japan recently set a THC cap on CBD products and the raw materials used to manufacture them. Following Japan's post-World War II cannabis policy, its restrictions are among the strictest in the world. For CBD products, the THC content threshold is set at 10mg/kg (= 0.001% = 10ppm) for oils and powders, and even more stringent for aqueous solutions (0.10mg/kg = 0.00001% = 0.1ppm) and food products. Restrictions apply. (1mg/kg = 0.0001% = 1ppm).
These limits are at least 200-300 times more stringent than the thresholds in most other countries with established CBD regulations (where 0.3% THC limits are observed for all product categories).
illegal by design
Of course, Japanese stakeholders are crying out that strict limits on THC will put them out of business and limit product availability. That may be true, but it is also true that regulation, whether planned by governments or not, will intentionally crack down on illegal markets. CBD manufacturers have long circumvented Japanese laws by claiming their products are made from hemp stalks. Hemp stalks are one of two parts of the plant that are legal in Japan (the other being the seeds for food). Of course, this is bullshit. No one makes CBD from hemp stalks.
For now, the Japanese government remains resolute in enforcing strict measures against hemp cannabinoids. I'll say it again. CBD companies shot themselves in the foot in Japan, just as they did elsewhere, by doing things a little differently.
Despite the crackdown, Ministry of Health, Labor and Welfare officials said they are considering further studies to assess CBD's effects on patients. So far, even the world's only widely approved CBD drug, Epidiolex, hasn't fared all that well. Rigorous Japanese scientists studied the effectiveness of this product and found it to be weakly effective in key clinical trials in Japan.
The study found that Epidiolex, an oral solution to treat a rare form of epilepsy in children, significantly reduced the incidence of seizures, according to Jazz Pharmaceuticals, the parent company of GW Pharmaceuticals, which makes the drug. A phase 3 trial showed that it did not reduce the
Phase 3 trials are important in the four-step drug development process because they provide the most comprehensive data on a drug's efficacy and its safety profile. This data is used by regulatory agencies such as the Food and Drug Administration (FDA). The US, the European Medicines Agency (EMA) and the UK's Healthcare Products Regulatory Agency (MHRA) will decide whether to approve the drug for general use.
Japan's lawmakers have already passed reforms that signal the government's intention to limit medical cannabis to CBD-only products that require a doctor's prescription. Many believe that this regulation will eliminate the majority of companies that currently rely on the over-the-counter market.
Here today. . .
An April 2023 report by Euromonitor International predicts that the Japanese CBD market has grown six times between 2019 and 2023. The market grew from $26 million in 2019 to $173.8 million in 2023, driven by consumer demand for products that provide relaxation, improved sleep, and stress relief. , according to the report
According to Euromonitor estimates, CBD currently accounts for 28% of Japan's total cannabis market, with the remaining 72% made up of illegal cannabis sales. The country's relatively relaxed enforcement of CBD regulations has allowed this market to flourish, even though current law only allows products derived from hemp seeds or stems.
Euromonitor estimates that approximately 150 companies are currently involved in Japan's CBD trade as importers or distributors. These companies serve an estimated 588,000 regular CBD users nationwide who purchase their products through both online platforms and brick-and-mortar stores.
. . . Will it be gone tomorrow?
The future of Japan's CBD market remains uncertain. Although strict THC limits are in place by law, the impact on the market has not yet been fully realized. Continued enforcement of these regulations by the government, coupled with a potential shift to prescription-only CBD products, will result in many companies exiting the market and few, if any, being able to comply with the new rules. This suggests that it may only be a company.
For now, Japan's CBD industry is in a state of flux, with companies scrambling to adapt to new regulations and secure ultra-low THC raw materials. As crackdowns intensify, the market could shrink dramatically, overshadowing Japan's once-promising CBD sector.
who is at risk
Some of the notable companies in Japan's CBD space appear to still be in business. Their business in Japan can be considered at risk.
healthy tokyo
Head office: Japan
Products handled: CBD oil, edibles (gummy, chocolate), skin care products, CBD cafe operation
cancel cell
Head office: Japan
Products: CBD-infused skin care and beauty products
Pharma Hemp Japan
Headquarters: Europe (Slovenia)
Products: CBD oil, e-liquid, cosmetics
Elixinor Japan
Headquarters: USA
Products: CBD tinctures, capsules, skin care products, topicals
CBDFX Japan
Headquarters: USA
Products: CBD tinctures, edibles, and e-cigarette products
Naturecan Japan
Head office: UK
Products: CBD oil, softgels, creams, edibles
Endoka Japan
Head office: Denmark
Product: Full Spectrum CBD Oil
