Chinese companies start producing CBD for the global market

Demand for CBD is exploding in Europe and North America. In food and cosmetics, CBD is the new wellness trend. In the United States alone, the CBD is estimated at 22 billion by 2022. Faced with these business opportunities, Chinese companies are rushing to position themselves on the global market.

CBD made in china

China is the world's leading producer of hemp, a plant used in the textile and paper industries. It alone accounts for 50% of world production. It exports its production internationally, notably to the United States, which does not use hemp.’have authorized its cultivation only very recently. Originally, China did not cultivate hemp to produce cannabidiol, but for some time now certain provinces have been granting licenses to companies to extract CBD from hemp. This production is destined for export, as CBD is not currently authorized for consumption in food or medicine in China.

«There is enormous potential» explains Tan Xin, Group Chairman Hanma Investment which in 2017 became the first company to receive permission from’extract CBD in Yunnan, a region renowned for its hemp crops.

Through its subsidiary Hempsoul, located in the village of Shanchong, grows over 647 hectares of hemp, from which it extracts CBD in the form of oil or crystals. «It's very good for people's health,» explains Tian Wei, the subsidiary's director. «China may have realized this a little late, but there will definitely be opportunities in the future. The company has global ambitions, and has set up subsidiaries in the USA and Canada.

In addition to Hempsoul, Yunnan province has granted three other licenses to subsidiaries of the Conba Group, a pharmaceutical company based in Zhejiang. In total, this represents around 14,569 hectares of hemp crops for CBD production on its territory, almost equivalent to French production. In 2017, the province of Heilongjiang also authorized hemp cultivation, and the neighboring province of Jilin has declared that it will do the same. Given China's production capacity and lower labor costs, once the industry is up and running, Chinese CBD products, sold at lower costs and therefore more competitively, could flood the global market.