The Japanese Government is Finally Opening Up to Cannabis Reform and the CBD Market is Ready to Take Off
The Japanese government has made a groundbreaking announcement on May 30th, declaring that they will now be accepting public comments on their cannabis reform bill. This is a major step towards loosening restrictions on the use of CBD in food products, a move that could have a huge impact on the global cannabis industry.
In February, the Ministry of Health, Labour, and Welfare (MHLW) released a proposal that hinted at changes to the amount of THC allowed in certain products. According to MHLW, this is to ensure the safety and hygiene of these products. AstraSana Holding AG managing director Yves Antoniazzi believes that this is a long-awaited milestone for the cannabis industry, as Japan becomes the first country to approve CBD in food products. This opens up opportunities for corporate companies to list CBD products in retail chains.
The public comment period is now open and will last until mid to late June. This is a crucial time for the Japanese government to gather feedback and make informed decisions about the future of cannabis in the country.
The discussion on medical cannabis legalization in Japan began back in May 2022, and in October 2023, the government amended its decades-old Cannabis Control Law. This was followed by the lower House passing the bill in November 2023, and the House of Councilors passing a revision to the law in December 2023. This revision lifted the ban on cannabis-based pharmaceutical products and reclassified cannabis under the country’s Narcotics Control Law. However, it also introduced stricter laws on illegal use, with violators facing up to seven years in prison.
Before the reform, Japan only punished violations related to import, export, cultivation, and possession of cannabis. But with the changing laws, the country is now poised for rapid growth in the cannabis market. According to a report by Euromonitor, Japan’s cannabis market is projected to expand sixfold from JPY $4 billion (USD $26.3 million) in 2019 to JPY24 billion (USD $173.8 million) in 2023. This growth is driven by the increasing demand for products that offer relaxation, sleep improvement, and stress relief.
The report also notes that Japan was not a target for cannabis market growth due to legal uncertainty. However, with the amendment of the Cannabis Control Law in 2023, the country now presents unique opportunities for the use of CBD in various industries such as medicine, health, beauty, beverages, and edibles. Euromonitor estimates that 0.12% of Japanese people consume cannabis illegally at least once a year, indicating a potential for even more growth in the market.
