As an experienced global cannabis consultant group, we’re excited to share the potential opportunities that the Asian market holds for investors in the cannabis industry. With countries like Thailand, South Korea, Japan, and Malaysia beginning to explore the use of cannabis for both medical and recreational purposes, the potential for growth in this market is significant.
Research firm Prohibition Partners estimates that the cannabis market will reach $100 billion by 2026, and businesses in the region are already preparing for increased demand from Asian consumers. For example, Thai renewable energy firm Gunkul Engineering has committed $57.6 million to building a cannabis plantation and extraction facility, and Thai companies like Srinanaporn Marketing and Ichitan Group are already producing cannabis-infused products like chicken leg snacks and green teas.
Even Japan, known for its strict cannabis laws, allows the use of CBD, and South Korea was the first country in East Asia to legalize pharmaceutical cannabis. Japan, Malaysia, and Taiwan are also considering similar moves, and it's likely that regulated pharmaceutical use will eventually lead to increased recreational use, boosting aggregate demand.
China is a bit more of a question mark, but the country's history with opium and the fact that marijuana grows naturally in Yunnan province suggests that there may be potential for growth in the future. China also produces around 70% of the world's hemp fiber, and full-spectrum hemp oil containing CBD is legal for export under tight scrutiny.
Overall, the Asian cannabis market is likely to grow at least 10 times to roughly $120 million by 2026, and we believe that this presents a significant business opportunity for investors looking to get involved in the cannabis industry. As a global cannabis consultant group, we’re well-equipped to guide and support new investors in this exciting and rapidly-evolving market.