LOS ANGELES- The cannabis market in Japan has shown remarkable growth from $26.3 million in 2019 to $173.8 million in 2023. This growth, detailed in a report by Euromonitor International, reflects a burgeoning demand for products that enhance relaxation, improve sleep, and offer stress relief. The Japanese market’s expansion was somewhat restrained initially due to legal uncertainties and the stigma associated with cannabis use. However, significant changes were prompted by the 2024 amendment to Japan’s Cannabis Control Law, which marked the first modification in over seven decades.
This legislative change is anticipated to broaden the application of cannabidiol (CBD) in various industries such as medicine, health, beauty, and food and beverage sectors. Despite a lower prevalence of cannabis usage compared to Western nations, with only 0.12% of the population engaging in its use annually, Japan has noticed an uptick in illicit cultivation and smuggling, particularly among the youth.
In December 2023, Japan revised its cannabis laws, lifting the prohibition on cannabis-derived medicinal products and introducing stringent penalties for illicit cannabis use, including potential prison sentences of up to seven years. This has sparked controversy among some lawmakers who view the new penalties as excessively harsh.
The amendment also facilitates hemp cultivation, potentially reducing the need for imports. With global shifts toward relaxing cannabis regulations, Japan initiated a review of its Cannabis Control Law in 2021, leading to the recent reforms. These include strict control over THC, continued regulation of CBD, and the endorsement of Epidiolex, a CBD-based antiepileptic drug, for medical use.
Despite the rapid growth of the CBD market, consumer awareness and acceptance remain limited, with ongoing concerns about product safety and regulatory adherence highlighted by recent health incidents related to CBD products. The revised law is expected to establish clearer guidelines, encouraging major companies to enter the market by 2024. The future success of Japan’s cannabis market hinges on effective consumer education about the benefits of CBD, emphasizing compliance and quality assurance.
