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Why do domestic and foreign CBD manufacturers enter Hong Kong market one after another?


In the world, Asia is almost the most unfriendly region to marijuana. At the 63rd session of the United Nations Commission on narcotic drugs (CND), most Asian countries voted against marijuana. Too conservative leads to the relatively slow development of Asian cannabinoid (CBD) market. However, Hongkong is different from Chinese mainland and many other parts of Asia offbeat.

CBD Disposable Vape Pen

CBD Disposable Vape Pen

According to the Hong Kong Centre for food safety, under the Dangerous Drugs Ordinance (cap. 134), "the illegal import of cannabis or any product containing controlled cannabinoids such as tetrahydrocannabinol constitutes a criminal offence." Among them, CBD is not a dangerous drug controlled by Chapter 134.

For drugs that contain CBD but do not contain any dangerous drugs, "these products must be registered with the pharmacy and poisons administration in accordance with the pharmacy and Poisons Ordinance (cap. 138) before they can be sold or distributed."

Therefore, CBD is legal in Hong Kong.

However, it should be noted that CBD extracted from industrial hemp usually contains low level of THC. In Hong Kong, only those CBD products with zero THC and CBN detected are legal and allowed to be sold on the market. Although the policy is still a bit harsh, for Hong Kong, which belongs to China, it is very rare for pure CBD products to be legal. Because China's policy on marijuana has always been very strict and cautious.

Although the development of CBD market in Asia is slow, there is no doubt that Asia is the most potential market. Especially in China, manufacturers all over the world covet this huge market. But as everyone knows, only mainland China permits licensed factories to grow and process industrial hemp in Yunnan and Heilongjiang. At present, only the cosmetics industry is allowed to add hemp leaf extract, while CBD is forbidden to add in food and health products.

Since Chinese mainland China's policies and regulations are so strict, are there any other ways for foreign CBD manufacturers to enter the Chinese market? Obviously, Hong Kong is a suitable strategic hinterland. For domestic manufacturers, the Hong Kong market is also an excellent test field.

Since the beginning of 2020, domestic and foreign CBD manufacturers have successively launched CBD market in Hong Kong market, including food, beverage, cosmetics and so on.

For example, in January 2020, oh CBD beer, a newly established craft beer company in Hong Kong, took the lead in launching its first CBD craft beer. This CBD beer is 330ml per bottle, alcohol content is 3.5%, contains 20mg CBD, and costs HK $110. This beer was very popular as soon as it was launched. The first batch of 2000 bottles of beer sold out within 10 days. Then the company launched the second batch and the third batch of CBD beer.

In June 2020, Joyce Beauty, a high-end beauty shop in Hongkong, started selling CBD products, including three CBD brands including Natureofthings, Saint Jane and Treaty. The CBD products sold include not only body milk, facial essence, skin lightening liquid, lipstick for skin care, but also sublingual tincture for relaxing mood, body ointment for relieving muscle pain.

In August 2020, altum international, an Australian company, opened its first CBD cafe in Hong Kong, found coffee. This coffee shop provides a series of CBD products including oil, capsules, balsam, etc. In addition, the store also provides a variety of food and drinks with CBD, including coffee, tea, Kombucha, popsicle, cake, bread, chocolate, etc.

In November 2020, pure sunarms, a Canadian CBD company, cooperated with found coffee and Lane Crawford to launch CBD candy, chocolate, bath salt and other CBD creative products tailored for Hong Kong consumers. This is the first time that the company's CBD products appear in Hong Kong.

In addition to the companies mentioned above, many other CBD brands have entered the Hong Kong market. Among them, Gentle Bro CBD has its own organic CBD products made in the United States, including soft capsules, dog snacks, soft sweets, balsam, cream and oil drops; Cubed CBD has provided its own CBD products, including oil, psoriasis and eczema cream, lotion and sprays; American brand Born CBD offers three different strength CBD oils.

In addition to foreign CBD brands entering Hong Kong, there are also many local brands growing up, such as dongjiye CBD skin care brand jointly created by Hong Kong's Longma technology group, Heilongjiang Academy of Agricultural Sciences and Guangzhou Qihua.

Obviously, since the beginning of 2020, Hong Kong's CBD market has been in full bloom. For these manufacturers, the rest is to let more people know about CBD and be willing to pay for CBD products.

As a good hinterland for more Asian markets, Hongkong has become a market for domestic and foreign manufacturers to enter the market. These manufacturers are dormant, trial and development in Hongkong, waiting for the opportunity to enter the larger Chinese mainland market and other Asian markets.

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