Cannabis in Japan and its future

After World War II, the General Headquarters of the Supreme Commander (GHQ), which created occupation policies in Japan, restructured the country by detaining war criminals, democratising the nation, and changing agricultural and educational policies.

One of these was the regulation of cannabis. Today cannabis is strictly regulated in Japan, however, cannabis news is communicated from North America and Europe almost everyday and it is reaching Japan. Japan’s neighbour, Thailand, has decriminalized cannabis and legalized a medical market. Google has announced that it would begin to ease restrictions on CBD advertising in 2023.

Current Situation

THC is completely banned in Japan, but not everything related to cannabis.
CBD and other cannabis products are gradually gaining popularity just as in North America or Europe. This trend began around 2016. At that time, there were only a few kinds of products like oral oil and gummies on the market, and these products were normally imported from overseas.
However, as the news from abroad drew attention to these products in Japan, vapes and other edible products, as well as cosmetics such as creams and lotions containing CBD, began to appear. In recent years, major Japanese retailers such as Rakuten and PPIH (Don Quijote) have begun to carry these products, and attention has been growing.

The Japanese cannabis market is now dominated by CBD and other cannabinoids.
While it has only recently begun and is still a niche market, this sector has a bright future. Japanese over the age of 65 have traditionally sought out alternative remedies to address their health and age-related issues. In 2019, there were 33.95 million people over the age of 65, or 26.8% of the total population.
It is predicted that by 2055, there would be 36.26 million people over the age of 65, or close to 39.4% of the population. This aging population is expected to drive demand for CBD. The Japanese have always tended to use natural products as they are – preferring foods and medicines in their natural forms.
It is for this reason that the market for natural foods and health products is very large, and CBD and other cannabinoid products are expected to grow and expand in this category.

MHLW's response to global trends

In 2020, the United Nations Commission on Narcotic Drugs (CND) removed cannabis from the Schedule IV list. This led the Japanese Ministry of Health, Labor, and in 2021, Welfare (MHLW) to review the Cannabis Control Law, and an expert committee was formed to study the regulations. Since then, the Japanese government has been evaluating the Cannabis Control Law, and last year, in 2022, the Ministry of Health, Labor and Welfare issued the following statement.

  • There are already some CBD and other cannabinoids products that are not made from parts prohibited by the Cannabis Control Law in Japan. They are mainly imported and sold as supplements or food products. However, there are 15 CBD products that have been recalled from the market as of July 2022 because THC was detected in trace amounts. There is need to establish a system that enables the use of cannabis-derived medicines, rather than just hemp-derived medicines.
  • For import, manufacture of cannabis products in Japan should be possible when the efficacy and the safety have been confirmed and approved under the Pharmaceuticals and Medical Devices Law.
  • As with other narcotic medicines, a distribution control system such as a licensing for the manufacture, formulation, processing, distribution under the Narcotics and Psychotropics Control Law should be introduced for cannabis-derived products.
  • The maximum amount of THC in cannabis-derived products should be set and clarified in the Cannabis Control Law. Unlike pharmaceutical products, these products are food or supplements, and necessary testing should be standardized and conducted under the responsibility of the companies that manufacture and sell cannabis-derived products.
  • Under proper management through a licensing system, in addition to the purpose of collecting fiber or seeds under the current law, these purposes should be added with new industrial uses and purposes, including production of raw materials related to CBD products.
  • Cultivation for the purpose of pharmaceutical raw materials, which is not permitted under the current law, should be added to the list, taking into account the possibility of new research and development of cannabis-derived medicines in the future.

  • Legal amendments scheduled for 2023

    Because of the above, it is anticipated that amendments will be suggested in a bill that would be introduced in 2023. This will likely permit the use of medical cannabis as well as cannabis health products. Some leading analysts and market researchers are predicting a huge growth in the Japanese market for cannabinoid products in 2023 and 2024. Large corporations from a variety of industries, including food, beverages, supplements, and cosmetics, are expected to enter the market once the law is amended.

    A cannabis expo known as MJBizCon is held annually in the United States. It is the largest cannabis expo in the world, attracting cannabis businesses and brands that come together to actively network and share information. This expo has become an essential driver for the growth of the global cannabis market. During a panel discussion at the 2022 exhibition, Berner, the CEO of Cookies, one of the top cannabis companies in the US, offered his opinions on current trends in the industry. He also discussed Japan’s current situation and future possibilities, indicating that international businesses are also preparing for this market.

    One of the most anticipated revisions to the Cannabis Control Law is the easing of restrictions on THC content. Under current Japanese law, THC is entirely prohibited and cannot be used under any circumstances. Also, while many countries make a distinction between cannabis and hemp based THC content, there is no such distinction in Japan, so that full spectrum products, by definition, do not exist there. This has been a stumbling block for many companies to enter the Japanese market, but if full spectrum products can be sold as a result of the deregulation, more companies will be able to enter the market and sell their products in Japan.

    Reference list: Ministry of Health, Labour and Welfare「Cannabis Regulation Study Committee」