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The booming Cannabidiol market in China

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How China has gradually evolved into a cannabis superpower

In 2018, China had 1,4 billion inhabitants. Of these, nearly ten million Chinese residents have been diagnosed with various seizure disorders. Although pharmaceutical drugs are available to treat health problems, China has turned to natural forms of medicine such as CBD. Currently, cannabis use is illegal in China. However, CBD oils, including those based on hemp, are legal. Due to the legal CBD in China, a change has occurred among their residents regarding their views on CBD and hemp.

For centuries, Cannabis Sativa is grown in China. One of the main goals of using this plant has been for its strong fibers. The fibers are transformed into rope, fabric and paper, which continues today. In addition, hemp seeds and leaves have been used in traditional Chinese medicine for centuries. Hemp production is distributed throughout China, but some provinces have more hemp farms than others.

In China, two main provinces account for nearly half of the legally cultivated land under hemp cultivation, according to the National Bureau of Statistics. These two provinces are the Yunnan and Heilongjiang. Since 2003, hemp production is regulated in Yunnan. However, in 2010, Yunnan was the first Chinese province to publish official regulations on hemp cultivation, according to the South China Morning Post.

Strong demand for hemp in China

In China, hemp cultivation is called green gold because hemp yields more than 10 000 yuan per year (per hectare). This equates to about 1500 $. In general, many Chinese authorities have turned a blind eye to hemp production before legalization and official regulations in 2016. As a result, more and more hemp farmers are cultivating this crop for a sustainable livelihood.

Despite the strict laws from China, hemp production has gone unnoticed since hemp contains very small amounts of THC. In addition, hemp is an essential source of income for many farmers. Therefore, the authorities do not continue the persecution unless there is a total production of cannabis. In general, much of the growth in hemp production came from Chinese government-funded scientists. These scientists are studying the military uses of hemp in addition to its potential for drugs and fabrics for uniforms.

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According to'World Intellectual Property Organization, more than half of the world's largest 600 cannabis-related patents are now held in China, thanks to research conducted by China in the past and at present. Overall, however, the CBD market in China is growing at an extremely fast pace. Even though THC-containing products remain illegal, hemp products can be sold in Chinese markets.

MGC Pharmaceuticals enters the Chinese market with CBD products

The biopharmaceutical company MGC Pharmaceuticals enters the Chinese health market by signing an agreement with the YuShop Global e-commerce import platform to sell its range of cannabis-based nutraceuticals.

YuShop Global will sell MGC nutraceutical products containing high quality phytocannabinoids to Chinese consumers through its cross-border e-commerce platform.

The company has announced today the signature of a marketing and distribution agreement under which YuShop will provide a turnkey service including sales, marketing, logistics and customer service in China.

Nutraceuticals that the Chinese e-commerce retailer will sell include CBD hemp protein powder, CBD capsules, CBD water soluble solution and CBD-based Vape Pen.

The contract does not contain specified minimum amounts or volumes, as YuShop is responsible for collecting and transferring the proceeds of sales to MGC immediately after the completion of the transactions. YuShop has already started an eight-week market test campaign to gather data to launch a large-scale marketing and sales campaign scheduled for June. YuShop specializes in the import and marketing of innovative health and wellness consumables, directly targeting the "middle class and affluent Chinese consumer" through its cross-border digital commerce platform.

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According to market data, China is home to a vast market of over 350 million consumers of vitamins and vitamin supplements of the middle class, who are expected to buy more than 20 billion US dollars (27,8 billion Australian dollars) of these products. 2020.

MGC stated that foreign products are currently in high demand because of perceived "superior quality" and "reduced counterfeit products often associated with domestic brands".

YuShop CEO Nathan Halsey said MGC's current product offering, along with its roadmap, should "be at the forefront of CBD demand in China, supported by technology."

"While most CBD brands today are limited to CBD gel oil dyes and gel capsules, MGC Pharma's expanded range of protein powders, multi-purpose vitamins and nutraceuticals is not only advanced. for the UK and North American markets, but it's in a special category in China, "said Halsey.

Delivery of products to meet these first orders is scheduled for this month, said MGC.

"China is today the world's hemp production engine, a leader in cultivation, processing, manufacturing and exports. In 2017, domestic hemp sales in China were estimated at 1,1 billion, more than a third of the world market. South Korea, Asia's cultural hub, is experiencing a booming market in cosmetics and personal care, with sales of over 8,5 billion in 2016. The Australian company MCG Pharmaceuticals has entered into a 40 Million Dollar (31,3 Billion Dollar) Supply Agreement to supply the Korean company Varm Cosmo 15 000 kg of CBD skin care products a month for three months. years. Other markets in the region are also considering easing restrictions on industrial hemp and medical cannabis, particularly in Malaysia, Thailand, Japan and other countries "

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