The Japanese CBD market is growing fast

Following recent regulatory changes, the CBD market in Japan is experiencing unprecedented growth, evolving from a niche industry to a flourishing market segment valued at 173.8 million in 2023. According to a comprehensive report by’Euromonitor International, This growth reflects a paradigm shift in societal attitudes towards cannabis products, especially those infused with CBD.

Japan's changing legal landscape

The Japan's conservative stance on cannabis has always discouraged major companies from investing in this sector, due to legal ambiguities and negative public perception. However, recent changes to the law Japanese on cannabis control marked a decisive turning point. The revised legislation, enacted in 2024, paves the way for the use of CBD in a wide range of sectors, including medicine, health, beauty, beverages and edible products.

The amendments introduced crucial changes, In particular, the authorization of Epidiolex and the authorization of hemp cultivation. This change is in line with global trends, Euromonitor International noting that regulatory changes in other countries have prompted Japan's Ministry of Health, Labor and Welfare to re-evaluate the cannabis regulations.

Japan and CBD

The rapid expansion of market Japanese CBD is driven by changing consumer preferences for health and wellness products. However, the, Euromonitor International perceived a certain persistent hesitancy on the part of consumers, fuelled by safety concerns and incidents involving CBD-infused products.

The report elucidates, «Concerns about product safety and regulatory compliance persist, highlighted by incidents such as CBD-infused candy disorders containing HHCH, widely reported across the country in 2023, prompting stricter regulations.»

Euromonitor International predicts that the market will evolve rapidly, driven by health-conscious consumers looking for alternatives to traditional products such as cigarettes and alcohol.

The report envisages a future where CBD sales will overtake the illicit market by 2026, This is achieved by raising awareness and offering innovative products. However, success depends on a solid quality assurance, and comprehensive consumer education.

Despite severe penalties for illicit cannabis use, Japan is experiencing a significant increase in cannabis consumption, especially among young people. The illicit market is estimated at 2.5 times the legal CBD in 2023.