Recently, CBD has become popular on social media and in cosmetics and supplement stores. News reports of overseas celebrities and athletes using it have been a hot topic, and many people may think it is "kind of dangerous."
In fact, CBD (cannabidiol) is a type of ingredient found in cannabis plants and hemp, but it is said to have almost no psychoactive effects, and has rapidly gained attention overseas over the past few years. Now, it is making a big impact on the global market, with major European and American food manufacturers and cosmetic brands all announcing new products.
The reason why CBD is gaining popularity worldwide is actually closely related to the latest research and social trends. In this article, we will not delve too deeply into technical terms, but will instead focus on the reasons why CBD is now being called "amazing" and research trends both in Japan and overseas.
1. The background to the explosive spread of CBD for "relaxation" purposes
1-1. Social media posts by foreign celebrities
One of the reasons why CBD started to become known to the general public was because of social media posts by foreign celebrities. Hollywood actors and popular artists started using CBD for the purpose of "relaxation" and "improving the quality of sleep", and the media quickly gained popularity. In fact, it is not uncommon to see people in North America keeping CBD oil in their studios and offices and using it during breaks from work.
Even among athletes, there are increasing numbers of people using products such as CBD balms that do not violate doping tests.
1-2. Stressful society and the wellness boom
On a global scale, people have become more health conscious and wellness-oriented since the COVID-19 pandemic. There has been an increased need for "natural ways to relieve the stress of remote work and urban life."
In Japan, the number of products with a "chill" feel has increased, but with many of the GABA and Chill products, it is difficult to feel the effects, and many people wonder if they have truly been able to relax.
That's where CBD came in. Especially in the United States and Canada, the market for CBD products has expanded rapidly since around 2018 when legal regulations began to be put in place , and they are now available in a wide range of categories, including supplements, snacks, and cosmetics.
On the other hand, in Japan, the image of cannabis has been significantly damaged by the incident of "cannabis gummies" that contained a large amount of the narcotic ingredient THC, which is now illegal. However, with strict legal reforms scheduled for December 2024 and major pharmaceutical companies entering the CBD field, future growth is expected as health consciousness increases.
2. What potential does the latest paper reveal for CBD?
2-1. Movement for scientific evidence
The reason why CBD is said to be "amazing" is that many researchers and medical professionals are trying to understand its mechanism of action. In Western universities and research institutes, an increasing number of papers are being published investigating the neuroprotective and anti-inflammatory effects of CBD, and presentations on CBD are becoming more frequent in medical journals and international conferences.
For example, major overseas media and academic websites have been reporting that attention is being paid to the possibility that CBD may support the body's regulatory function called the endocannabinoid system (ECS). The ECS is said to play a wide range of roles, including stress, sleep, and immune regulation, and CBD may be the "key" to influencing this system.
2-2. Pick up the latest papers from Japan and overseas
- Foreign Journal: Verification of the Relaxation Effect <br>A small-scale study conducted by a university hospital in the United States reported that subjects who took CBD may have been able to balance their autonomic nervous system (however, a causal relationship has not yet been determined and research is ongoing).
- European Institute: Link to the immune system Some papers suggest that CBD may have a regulatory effect on immune cells. Research is particularly ongoing on autoimmune and inflammatory diseases, and this is an area where future medical applications are expected.
- In Japan: More and more cases of entering the CBD business <br>Although it is slightly different from the paper, the number of companies and university laboratories conducting research on CBD in Japan is increasing. There are also cases where it is applied to food and cosmetics within the scope of domestic regulations.
However, these are still only at the stage of showing "possibility" and have not been fully proven medically . Personally, I predict that as research progresses, more reliable data will be collected, which will have a positive impact on the market. On the other hand, caution is required, as excessive expectations may lead to increased investment risk due to subsequent tightening of regulations and uncertainty about research results.
3. The CBD market is expanding! Business highlights
3-1. Diverse product categories
What's interesting about the CBD market is that it can be commercialized in a wide variety of forms. It's available in supplements such as oils and capsules, as well as gummies, chocolate, coffee, and even skin care and pet products . Major companies are also starting to take an interest in this market, and there are increasing reports of new product development and joint research.
As far as I have researched, in North America, the trend is to put CBD in everything, such as CBD-infused soft drinks and CBD candy. Due to high consumer interest, new entrants are appearing one after another, and data (reports from Grand View Research, etc.) show that the market size is growing by double digits on average each year.
3-2. Regulations and brand strategy
On the other hand, the laws and regulations surrounding CBD vary greatly from region to region. Even within the United States, the handling varies from state to state, and regulations in Europe and Asia are diverse. In Japan, the mainstream rule is to only handle safe CBD ingredients that have had the illegal component THC removed .
Companies that have already entered the CBD business are strengthening their branding to differentiate themselves by claiming to be "organic," "low-irritation," "supervised by experts," etc. In particular, CBD is a product for which consumers are highly sensitive to the "safety and security" aspect, so transparent manufacturing processes and traceability of raw materials are key factors in gaining support.
4. The attractions and risks of the CBD business
4-1. What is the growth potential and timing for entry?
The CBD market has a very high growth potential. In particular, the US and Europe have already formed a multi-billion dollar market, which is expected to expand further in the future. If regulations were to be relaxed in Asia, including Japan, the global market could expand rapidly.
However, there is a risk that demand could plummet if additional legislation or negative research results regarding CBD are published.
4-2. Business model and long-term perspective
There are many different business models for CBD-related companies, from companies that extract and supply raw materials to startups like us that are launching their own brands . In addition, there are cases where major pharmaceutical companies overseas are developing CBD-based medicines, and there is active M&A and partnership activity.
If you are going to enter the CBD business, it is important not to just jump on the trend, but to thoroughly check the research and development capabilities, patents, brand building capabilities, etc. While there are hopes for applications in the medical field, many products lack evidence of safety and effectiveness, so it is necessary to assess the technical capabilities and research data of each company.
5. Summary: Is the CBD boom real?
There are various reasons why CBD is attracting worldwide attention. In addition to the "demand for relaxation" in a stressful society, it is also important to note that academic credibility is increasing due to an increase in domestic and international research. Furthermore, it should have the flexibility to be deployed in a variety of product categories.
Article Author
