In November 2023, the Japanese Ministry of Health, Labor and Welfare (MHLW) was tasked with developing rules and standards for THC levels in Japanese cannabis products. This motion was the first cannabis reform since the Cannabis Control Act, which has shaped cannabis rules in Japan for 75 years. CBD is already widespread in Japan, so what will change with cannabis reform?

The MHLW has already announced it will legalize CBD products that contain traces of THC, as most agree that full-spectrum CBD is more effective than CBD isolate. Japan is widely expected to comply with the international standards of less than 0.3% THC in the final product. With these changes, doctors can prescribe more effective medications, increasing access for the Japanese population.

In fact, with clear rules, the novel foods industry is expected to grow. It may be able to include other non-psychoactive cannabinoids like CBN and CBG, as the main issue is not the benefits of cannabis products but the psychoactive attributes of THC. The legalization of other minor cannabinoids in Japan could enable a new level of cannabinoid research and development, creating one of the world’s most advanced CBD and minor cannabinoid markets and drawing attention away from THC. 

Medical producers may benefit significantly, as the new laws may open access to existing FDA-approved drugs like Epidiolex. Ancient Doctors can prescribe some CBD or THC remedies, but there are very few registered products. Enabling access to Epidiolex or other pharmaceutical cannabis products would open prescriptions to general practitioner doctors. However, it is still being determined whether pharmaceutical THC products like Sativex would be accepted under the new rules. 

Medical manufacturers that can prove the highest quality standards, like European Union Good Manufacturing Practices (EU-GMP) certified operators, would be the biggest beneficiaries in the nascent Japanese market. Producers could develop products containing minor cannabinoids, like CBN and CBG, to differentiate the market and usher in a new era of products focused on minor cannabinoids, providing a massive boom to pharmaceutical manufacturers. 

Finally, although lawmakers announced last November that Japan would allow for the cultivation of hemp and high-CBD/low-THC cannabis strains, it remains to be seen whether Japan can be economical in growing and manufacturing CBD. The country would face stiff competition, as many countries already have established infrastructures. However, just as we see with everything else Japan makes, Japan would doubtless grow the best hemp and make the best products if the country puts its mind to it. 

In the long term, Japanese farming communities and pharmaceutical manufacturers could benefit from domestic hemp production, but global cannabis players would be immediately ready to supply Japanese markets with both registered and unregistered medical cannabis products. International CBD brands, novel foods, and pharmaceutical manufacturers would be the most immediate winners as the cannabis industry in Japan becomes more straightforward and regulated under the new laws.