Japan to legalize medical cannabis

The Japanese government is poised to authorize the medical use of cannabis to treat patients with incurable diseases, according to the outline of draft legislation revealed last week in the Japanese media.

The Japanese government plans to submit several bills, including one to revise the law on cannabis control, during the current session of the Diet, Japan's legislature.

The first Japan's plans to legalize medical cannabis only concerned the authorization of Epidiolex, a pharmaceutical CBD oil prescribed for childhood epilepsy refractory to conventional treatments. In December 2022, Epidiolex entered phase III of a clinical trial involving 84 participants, to test the drug's efficacy and safety.

Epidiolex has been approved by the American FDA and European health authorities.

The proposed revision would also criminalize the recreational use of cannabis, which is not criminalized today. under an initial provision of the Cannabis Control Act, which does not punish consumption in order to protect hemp growers who might unintentionally inhale psychoactive substances from the crop. However, the possession, sale and cultivation of cannabis for recreational and medical purposes are illegal.

By cracking down on the recreational use of cannabis, the Japanese government aims to prevent its growing consumption among young people.

CBD, a market of hope

In parallel with this medical reform, the CBD market is developing rapidly, with sales expected to reach around €120 million by 2022.

Currently, products containing CBD, extracted and manufactured solely from the mature stems and seeds of the cannabis plant, do not fall into the legal category of cannabis, and can therefore be manufactured and sold in Japan.

When importing CBD products, the importer must nevertheless prove that they do not contain THC and that they are extracted solely from the cultivated stem and seeds. Moving from regulations based on plant parts to those based on extract composition would immediately widen the potential gateway for CBD imports and open up new market opportunities.

While CBD oils are the most popular formats for healthy forms of CBD consumption, vaping is the most popular format in Japan. Their popularity is attributable to Japanese e-cigarette regulations, where vapes containing nicotine are prohibited by law. Liquids containing CBD provide the sensation of vapor inhalation without the prohibited ingredients.

The topical products are also good entry-level products for Japan, which has a massive skincare market.