The Asia Pacific cannabidiol market size was estimated at USD 440.5 million in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 24.1% from 2024 to 2030. The cannabidiol (CBD) market in Asia Pacific is predicted to expand in line with the growing acceptance and legalization of products based on hemp,increasing awareness of potential health benefits. To cater to consumer demand, companies are creating a diverse range of products infused with cannabidiol, such as edibles, topicals, and beverages. The advent of e-commerce has enabled these companies to tap into a larger customer base and boost their sales via online platforms, which has had a positive influence on the growth forecasts for the CBD industry.
Asia Pacific is the third largest region in the global CBD market. CBD, a non-psychoactive compound found in hemp, is sold in a multitude of forms including capsules, edibles, hemp oil, and vaping e-liquid. Companies like Eos Scientific, under the umbrella term of Ambiance Cosmetics, have launched six CBD-infused cosmetic lines, featuring products like oils, balms, and moisturizers. As knowledge about CBD’s potential health benefits grows, so does investment in research and development to better comprehend its effects and develop new products. This has led to an increasingly competitive CBD market with more companies offering similar products, thereby expanding the market size.
CBD, unlike its primary produce, cannabis, is facing restrictions in many Asian and African countries. Asian countries rarely promote using cannabis-based products, even for medical purposes. These countries have strict laws and stringent punishments for those caught or found consuming CBD-based products and are not in favor of relaxing these laws or decriminalizing use of CBD. Thus, very few countries have legalized the use of cannabis for medical purposes. For instance, drug regulations in Indonesia are so stringent that they include life imprisonment, USD 1.2 million fine, and even death penalty for those found consuming illegal drugs, including cannabis. This is expected to hinder the medical cannabis market in these regions. Moreover, countries such as India have still not taken any decisions related to CBD products. Therefore, patients must rely on import of CBD-based medicines after receiving special permissions, which makes products quite expensive for consumers.
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Market Concentration & Characteristics
The Asia Pacific CBD market is at a high growth stage and is expected to continue its growth trajectory from 2024 to 2030. Increasing adoption of CBD oil and infused products among the youth population for its health and wellness benefits will propel the market growth.
The region’s scientific and research capabilities are expanding, leading to intensive research on CBD’s potential applications. Companies are constantly innovating to create CBD-infused products like beverages, skincare, and pet treats. This region has witnessed various products like CBD oil, CBD concentrates and CBD isolates.
The demand for CBD products is growing rapidly in the Asia Pacific region, as consumers become more aware of its health benefits. The governments in this region are becoming more accepting of cannabis products, which creates more opportunities for the market players. For example, in 2022, Aurora Canabis acquired Austrade Herbs, an Australian hemp and CBD company. This deal gave Aurora a significant presence in the CBD market in Australia and an access to their distribution channels.
The market is poised to have significant growth in the coming years but is greatly impacted by government regulations. Strict restrictions, like bans or high THC limits, can restrict product availability and limit market access. The frequent changes in regulations create an uncertain market for business, making it difficult to plan a long-term investment. Complex regulations can lead to high compliance cost for nosiness, making it challenging for smaller companies to establish growth. But the regulatory landscape in the region is diverse for different countries. Moreover, recent trends show a shift towards more progressive regulations, driven by the increasing consumer demands and scientific evidence.
Rising awareness of CBD’s potential health benefits to alleviate symptoms of various conditions, including anxiety, pain, sleep disorders and skin problems are expected to increase the product expansion in this region. Products like CBD oils & tinctures, CBD edibles, CBD topicals, and CBD pet products are set to have potential expansion. For instance, Hemp Naturals, an Australian company, has launched a range of CBD products in Australia and New Zealand.
CBD, unlike its primary produce, cannabis, is facing restrictions in many Asian countries. Regardless, countries like China are the largest hemp cultivator in Asia and cultivates nearly half of the world’s hemp production. The country also exports nearly 90% of its products to the U.S., Germany, the UK, the Netherlands, and Japan. Many companies are getting into partnerships to expand their market in different regions. For instance, in 2020, CV Sciences, a U.S.-based CBD company, partnered with Health Science Holdings to distribute its PlusCBD oil in Thailand.
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