Can China seize a US$4.4 billion opportunity in the medical cannabis market and capitalise on growing global demand?

The explosive growth in the global demand for CBD, an active ingredient of cannabis used in a wide range of health products, is opening up business opportunities that China is well poised to capture

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An employee of Thailand’s first indoor cannabis farm holds up a plant seedling. The use of medical cannabis is rapidly gaining acceptance across the world. In Asia, Thailand, South Korea and Malaysia have legalised the research or use of medical cannabis products. Photo: EPA-EFE

Daragh Anglim

Daragh Anglim is managing director of market intelligence and strategic consultancy firm Prohibition Partners.

Published: 2:00pm, 21 May 2019Updated: 10:30pm, 21 May 2019

Two years ago, this newspaper noted how China was quietly, albeit rapidly, developing into a “cannabis superpower”. Of course, at first glance, this seemed like a surprising prediction. China shows no signs of mirroring the sweeping adult-use legislation altering cannabis laws across the globe. Nor does it look likely to follow in the path of Thailand, South Korea or Malaysia in legalising the research or use of medical cannabis products.

Nevertheless, China has an enormous opportunity in the market and has emerged as a powerhouse in the production of hemp, responsible for about half the world’s supply.

The Asian Cannabis Report, published recently by Prohibition Partners, highlights the US$4.4 billion opportunity available to China by 2024 should it choose to pursue a medical cannabis market and capitalise on its favourable climate, industrial capability, heritage in hemp cultivation and the sheer size of its population. The report found that, just as China has become the workshop for the Western world’s demand for consumer goods, it is primed to capitalise on the growing global demand for cannabidiol (CBD), a non-psychoactive ingredient of cannabis, and hemp.