From February 1 this year, Hong Kong has banned the production, offer, sale, import, export, and possession of cannabidiol (CBD) products and solutions, including cosmetics and meals. Any individual who violates the rule would be dealt with significant penalties.
With CBD classified as a “dangerous drug” in the nation, cosmetics businesses that had turned to Hong Kong soon after the ban in China two a long time back found by themselves in a predicament.
Prior to the new regulation, CBD was used in a huge selection of cosmetic products and solutions offered in Hong Kong, including facial serum, lip balm and body lotion.
“The ban has forced many CBD firms to take out the merchandise from their cabinets, transform their corporations, or close down absolutely,” Hedy He, Cosmetic Regulatory Analyst at ChemLinked, instructed CosmeticsDesign-Asia.
While a massive vast majority of companies ceased functions, a few have picked to pivot. One of them is C-Hemp, which has turned its shop in the Central district into a attractiveness salon identified as Luxtique.
Between superior-profile corporations that have shuttered is Discovered, the initially CBD cafe and retail retail store in Hong Kong, which stocked CBD-made up of human body balms and massage oils.
Owned by Altum Global, the firm experienced reportedly professional a 20-fold advancement in business since its opening in July 2020 but has now shifted its focus to other marketplaces like Australia and New Zealand, where individuals are authorized to purchase CBD products albeit with limits.
On the very same notice, Hedy stated that CBD firms could search to marketplaces this sort of as Japan and South Korea, which have proven potential for progress.
“Most Asian nations around the world have demanding anti-drug laws and maintain a conservative mindset toward hashish, apart from Japan and South Korea. Cosmetics infused with CBD derived from stalks and seeds of hemp — rather flowers and leaves — and that are cost-free of tetrahydrocannabinol (THC) are lawful in Japan. There are no unique polices concerning CBD cosmetics in South Korea but in practice, the component can be utilised when the volume of CBD and THC are at 10ppm or fewer and 20ppm or much less respectively.
“In addition, CBD merchandise are permitted in particular sections of the United States and Europe. Though Thailand will allow domestic brands to generate cosmetics applying four varieties of hashish and hemp substances, the import of cosmetic products made up of these kinds of ingredients is forbidden. So, for the APAC location, firms can test the waters in the Japanese and South Korean markets,” she described.
Soaring desire irrespective of troubles
Primarily based on a report by Grand Watch Study, the global CBD skin treatment industry size was valued at US$964.1m in 2022. This determine is projected to develop at a CAGR of 31.5% from 2023 to 2030.
In spite of the regulatory hurdles, there is expanding demand from customers for CBD-infused products and solutions owing to escalating recognition between buyers about the helpful statements of the component.
Very last November, Juana Skin became the initially CBD-based mostly skin treatment brand to be released in the UAE, with products ranging from cleanser and exfoliating scrub to experience oil and overall body butter.
“CBD is a natural component derived from the Cannabis Sativa plant that cannabinoid receptors in our entire body recognise and use to lower irritation, control oil glands, and calm aggravated pores and skin. We are focused on harnessing the enormous therapeutic powers of ethically sourced CBD,” said Juana Martini, co-founder of Juana Skin.
The company is also working with the US’s Environmental Doing work Group (EWG) to travel thoroughly clean and sustainable elegance in the Center East and over and above.
“CBD is effective finest when it is put together with the proper elements. Our EWG-confirmed formulations consist of botanical extracts, this kind of as Golden Root and grape seed oil, that aid and enhance the benefits of CBD. It is extremely obvious that there is a demand from customers for responsible and cleanse pores and skin care in the UAE.
“With the EWG on board, our individuals can have peace of mind that our items are safe to use, really powerful at de-stressing the pores and skin, and sort to the environment.”