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Новости/Аналитика

Will China's market for cannabinoid products become the largest in the world?

11.08.2020

In the short term, China will be added to the number of exporting countries of cannabinoid products, which will initially play “not the last violin” in this market. Compared to the US and Canada, China's domestic consumer market is colossal. The size of this market makes it a potentially huge source of demand for CBD products in the country. A sharp increase in the population due to a change in government policy on the issue of fertility, a significant increase in the income of Chinese citizens create favorable conditions not only for the expansion of cannabinoid products in economically developed countries of the world, but also for the development of the domestic market. 

China is currently the world's leading producer of hemp products in a number of sectors of modern cannabis growing, for example, in light industry (textiles, knitwear), food production, animal feed, etc. Despite the fact that tetrahydrocannabinol Still strictly banned in China, the rapid growth of the global drug-free cannabinoid market has prompted the Chinese government to develop a regulatory framework to allow the production of drug-free cannabinoids from technical hemp. 

For the first time in the country's history, at the largest meeting of the highest legislative and advisory authorities in China, the question of the need for state support for the development of the hemp industry, as well as increased investment in the processing of the most profitable plant used in modern agriculture, was raised. The decisions taken relate to both domestic and foreign markets, where conditions are expected to be created for the further expansion of Chinese products, primarily those containing non-drug cannabinoids, in connection with the planned changes in the regulatory framework at the UN level.

As the second largest economy in the world, China is a huge force in the global hemp market, which can not only shape trends but also set the tone for a number of areas of the modern hemp industry. China's specialists closely monitor the processes that take place on the drug-free cannabinoid market in North America, Australia, Europe and Asia, so Chinese companies avoid mistakes that have been made or are being made by representatives of hemp companies specializing in using the therapeutic properties of cannabis in the above regions of the world. Already, a number of large companies are ready to enter the global market for drug-free cannabinoids, focusing on those regions in which the possibility of using the hemp plant for both industrial and medical purposes is regulated.

Having felt the support from government officials provided by the country's hemp industry, the lowest cost component for the production of cannabinoids in the world, the centuries-old culture of growing the hemp plant, as well as the presence of a large-scale industrial infrastructure, the leadership of a number of large Chinese companies decided to accumulate resources not only for the production of drug-free cannabinoids or goods containing them, but also the sale of these products in the territory of the Middle Kingdom.

Experts from the Asia-Pacific hemp market note that domestic demand for products containing non-drug cannabinoids is growing in China. Significant resources are invested in the creation of production chains that create various kinds of goods (food, cosmetics, food / feed / biologically active additives), which include components of the hemp plant with significant therapeutic potential. That is why the leaders of the drug-free cannabinoid market are actively seeking to enter the  Chinese market in order to use China's resources to their advantage and “catch the trend” of the rapid growth of the global drug-free cannabinoid market in order to develop the necessary infrastructure for this, quickly and economically scale the results obtained “in Chinese resources ”to a global scale.

Commentary of experts of the Association "Ukrainian technical hemp"

Compared to the US and Canada, China's domestic consumer market is colossal. The size of this market makes it a potentially huge source of demand for CBD products in the country. A sharp increase in the population due to a change in government policy on the issue of fertility, a significant increase in the income of Chinese citizens create favorable conditions not only for the expansion of cannabinoid products in economically developed countries of the world, but also for the development of the domestic market. 

Considering the potential of Chinese hemp companies, we can already say that in the short term, China will be added to a number of cannabinoid exporting countries, which will initially play “not the last violin” in this market. Given this trend, it makes sense to create a development strategy for national hemp enterprises. In particular, issues related to the possibility of participation in the global market for drug-free cannabinoids of representatives of national cannabis growing will be considered during the 5th course of training for students of the Hemp University, which will be held in the second decade of September at the National University of Bioresources and Nature Management of Ukraine.

Обучение в рамках "Конопляного Университета"
13.10.2020

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