According to a report from Euromonitor International, Japan’s green scene has seen “staggering growth over the past four years,” ballooning from JPY4 billion (USD 26.3 million) in 2019 to a whopping JPY24 billion (USD 173.8 million) in 2023. And no, we’re not talking about wasabi-flavoured edibles.
This surge is all thanks to folks craving some R&R: relaxation, sleep improvement, and stress relief. Apparently, everyone’s trading in their sake for CBD-infused teas. Euromonitor points out that big Japanese companies were initially shy to dip their toes into the cannabis pool due to legal murkiness and a not-so-great reputation around cannabis use.
But hold the matcha! 2024 brought a game-changing amendment to Japan’s “Cannabis Control Law,” making it easier to sprinkle CBD into everything from medicine and beauty products to beverages and edibles. The company expects this change to “significantly accelerate the use of CBD in diverse fields.” Talk about a green light!
Despite Japan’s traditionally low cannabis consumption (only 0.12% of the population are yearly users of the illicit stuff), there’s been a sneaky rise in illegal growing and smuggling, especially among the young and restless. In fact, the black market for cannabis in 2023 was estimated to be a jaw-dropping 2.5 times larger than the legal CBD market. That’s a lot of secret green thumbs!
Japan’s House of Councillors got in on the action last December, easing restrictions on medical cannabis but also laying down stricter penalties for the recreational stuff. We’re talking up to seven years in the slammer for getting caught with a joint. Ouch!
Lawmaker Rep. Taro Yamamoto wasn’t thrilled, saying, “What previously had no penalties will now be harshly punished. I opposed the bill because there is a serious problem here.” Tell us how you really feel, Taro!
The law change also gave the green light (pun intended) for hemp cultivation, aiming to cut down on imports. Euromonitor credits this shift to Japan feeling the peer pressure from other countries easing up on cannabis regulations. They even formed an expert panel to review the Cannabis Control Law in 2021. Fancy, huh?
But don’t go thinking Japan’s CBD market is a fully bloomed cherry blossom just yet. Euromonitor says it’s still in the early stages. “CBD products remain relatively unknown to most consumers,” they note, citing concerns over product safety and regulations. Remember those CBD-infused gummies causing a stir in 2023? Yeah, tighter rules are coming.
Despite the hurdles, Euromonitor predicts that CBD sales will outpace the illicit cannabis market by 2026. They stress that education, quality control, and compliance will be key. So, if you’re planning to dive into Japan’s budding cannabis market, you better bring your A-game and some solid research.
In a nutshell (or should we say, a bento box?), Japan’s cannabis market is like a rising sumo wrestler—big, powerful, and getting everyone’s attention. The future’s looking green, Japan!
Photo by: Belle Co
