Europe and North America currently have the largest markets for cannabis, and are projected to take up nearly 80% of the global market share by 2024. However, Asia is something of a dark horse, being home to the greatest number of cannabis users in the world – the region combined takes up just under a quarter of global cannabis users. This number is expected to grow rapidly as government stances soften and regulations begin to take shape.
Once the legal cannabis industry in Asia begins to materialize, it is set to experience high growth in the next few years, reaching a market value of $12.5 billion by 2024. But this is only the tip of the iceberg considering the total market potential of $133 billion. While Asia is likely to follow North America’s trajectory of growth, venturing into medical, F&B and wellness segments as consumer acceptance increases, there are also factors that will differentiate the Asian cannabis market from others. Firstly, China grows nearly half the world’s legal hemp. In 2018 sales, mostly of textile fibre made from the plant’s stalk, totaled $1.2bn. Now global demand for its seeds, leaves and flowers is surging.

Given that China alone is the largest hemp producer in the world, hemp production will greatly contribute to the growth and innovation of the cannabis industry in Asia. Development of innovations in hemp, such as cultivation and processing technology, as well as measures to mitigate risks of THC or soil contamination, can be applied to the wider cannabis industry. Further, due to traditional use of cannabis for health benefits in countries such as China, India and Thailand, there will be unique market opportunities pertaining to traditional applications. Some Asian countries are slowly but surely opening themselves up to the opportunities in the cannabis industry, and consumer acceptance will gradually follow.