How China has gradually evolved into a cannabis superpower
In 2018, China had 1,4 billion people. 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 shifted to natural forms of medicine like CBD. Currently, the consumption of cannabis is illegal in China. However, CBD oils, including those made from hemp, are legal. Due to the legal CBD in China, a shift has occurred among their residents regarding their views on CBD and hemp.
For centuries, Cannabis Sativa is cultivated 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, the seeds and leaves of hemp have been used in traditional Chinese medicine for centuries. Hemp production is spread across 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 as hemp contains very low 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 full production of cannabis. In general, much of the growth in hemp production has come 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.
This applies, to only to what kinds of products your potential customers buy, but also to the way these products are promoted through advertising and marketing content. World Intellectual Property Organization, more than half of the more than 600 patents related to the cannabis plant in the world are now held in China, thanks to research carried out by China in the past and currently. Overall, however, the CBD market in China is growing at an extremely rapid rate. While products containing THC remain illegal, hemp products can be sold in Chinese markets.
MGC Pharmaceuticals enters the Chinese market with CBD products
Biopharmaceutical company MGC Pharmaceuticals enters the Chinese healthcare market by signing an agreement with e-commerce import platform YuShop Global to sell its line 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 signing 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, with YuShop being responsible for collecting and transferring the proceeds from sales to MGC immediately after the completion of transactions. YuShop has already started an eight-week market test campaign to collect data to enable the launch of a large-scale marketing and sales campaign, scheduled for June. YuShop specializes in importing and marketing innovative health and wellness consumables, directly targeting the “affluent middle class Chinese consumer” through its cross-border digital commerce platform.
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 said foreign products are currently in high demand due to perceived “higher quality” and “reduction in counterfeit products often associated with domestic brands”.
YuShop CEO Nathan Halsey said MGC's current product offering, along with its roadmap, is expected to "be at the forefront of demand for CBD products in China, supported by technology."
“While most brands of CBD today are limited to oil tinctures and CBD gel capsules, MGC Pharma's expanded line of protein powders, multipurpose vitamins and nutraceuticals is not only advanced. for the UK and North American markets, but it is in a league of its own in China, ”said Mr. Halsey.
Delivery of products to meet these first orders is scheduled for this month, said MGC.
“China is today the global engine of hemp production, a leader in cultivation, processing, manufacturing and exports. In 2017, domestic hemp sales in China were estimated at $ 1,1 billion, or more than a third of the global market. South Korea, the cultural center of Asia, has a booming market in the beauty and personal care industry, with sales of over $ 8,5 billion in 2016. The company Australian MCG Pharmaceuticals has entered into a $ 40 million ($ 31,3 billion) supply contract to supply Korean company Varm Cosmo with 15 kg of CBD skin care products per month for three years. Other markets in the region are also considering easing restrictions on industrial hemp and medical cannabis, notably in Malaysia, Thailand, Japan and other countries ”
