Australian medical cannabis takes on the Chinese market

The Australian medical cannabis company Creso Pharma has signed a commercial partnership with the Chinese hemp producer Zhejiang Kingdom Creative, which will import hemp and cannabis derivatives from Australia for the Chinese market.

Kingdom Creative already produces hemp and flax for use in fabric manufacturing. The agreement with Creso also includes the creation of a line of dietary supplements, nutraceuticals, and cosmetics. The two companies will thus collaborate on research and development and on the distribution of their products.

Creso has opened four offices in China to establish its marketing presence and expand its sales while managing the distribution of its products in China.

«This will enable Creso to expand rapidly into other Asian markets,» the company said in a press release.

The Chinese health and wellness market, which includes vitamins, dietary supplements, herbal extracts, and traditional Chinese medicine, is currently valued at 40 billion euros and is expected to grow by 10% annually through 2025.

The medical cannabis market is also expected to grow as the country gradually expands access to medical cannabis treatments and the production of cannabis-based products for patients.

Creso is reportedly in advanced discussions with other Asian pharmaceutical and cosmetics companies to distribute its products more widely in Asia.

China is currently the world's leading producer of hemp, ahead of France. The possession and use of cannabis, however, are prohibited. and subject to 10 to 15 days in prison and a fine of up to 2,000 yuan (€260).