There’s a reason why China is poised to take over the CBD market. But why? Read along to find out why China is likely going to outproduce the rest of the world in CBD production.
The United States, Canada, and Europe are responsible for an uptick in demand for CBD. However, none of these countries can provide the amount of CBD that’s required to satisfy the need for cannabidiol. This is where China comes in.
China has a very strict drug policy, which includes THC. However, hemp does not contain THC, but instead, it has a large amount of CBD. CBD is the non-psychoactive cannabinoid that’s wildly popular in the West for its potential to help support a number of mental and physical issues.
China is a massive country that is perfectly suited for hemp cultivation. Landrace cannabis has been growing in the mountains of Yunnan province for millennia, so growing hemp is an easy task.
As China typically does, they find what the world needs, and they produce it on a massive scale. The same goes for CBD production, and many farms have now transitioned towards hemp cultivation.
Hemp cultivation is viewed as a means to reduce poverty and increase jobs in rural China. Due to this, many farmers are quickly dropping food crops and beginning to cultivate the next boom crop - hemp.
Who Can Compete?
Currently, it’s unlikely that any country can compete with China’s ability to produce hemp and CBD. This is why it’s likely that many CBD products will contain CBD that’s extracted and cultivated in China, instead of North America.
With such high demand, the supply of CBD needed to increase to satisfy the market. In the case of CBD, China stepped up to the plate and is preparing to dominate the CBD market. The global CBD market is expected to reach $20 billion by 2024, according to market analysts. Currently, the global CBD market is worth roughly $450 million. This means that the CBD industry is primed to grow exponentially, especially as more countries allow CBD products.
There’s no doubt that more countries will be involved in CBD production; however, it’s apparent that China has the upper hand in out producing the rest of the world.
As the demand for CBD continues to grow, especially in the United States, it’s apparent that many Chinese companies are beginning to see the value in hemp. It’s for this reason that Chinese agricultural and biotech companies are betting big on the CBD boom. It’s likely that China will take over the CBD market within the next few years, especially if CBD gains traction in China - and not just abroad.