Arcview Group + Asia Horizon Market Report 2020
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A Report by The Arcview Group and Asia Horizon Takes a Deep Dive into China’s Cannabinoid Industry
— David Abernathy, VP of Research and Consulting at The Arcview Group
LOS ANGELES, CALIFORNIA, UNITED STATES, August 6, 2020 /EINPresswire.com/ — LOS ANGELES, CA (August 6, 2020): China is currently the world’s top producer of industrial hemp, with textiles, animal feed, and seed-based food products the primary outputs. While THC remains strictly prohibited in China, the rapid growth of the global CBD market has prompted the Chinese government to develop regulations enabling domestic production of higher-value, non-psychoactive cannabinoids from industrial hemp. With newfound government support for the industry, one of the lowest cannabinoid production costs globally, and unrivaled large-scale manufacturing infrastructure and expertise, China’s cannabinoid producers are set to capitalize on the global supply chain and also on the emerging opportunity for CBD as an ingredient within China’s domestic market.
“2020 is widely considered to be ‘year one’ of the commercial cannabinoid industry in China,” according to Brian Sheng, Founder & Chief Executive Officer of Asia Horizon. “As the second-largest economy in the world, China represents a transformative opportunity for the global hemp industry. While early in its development, the Chinese industry is accelerating as it learns from developments in the North American market and beyond. Many Chinese public companies are strategizing for early entry as global regulations are increasingly clarified.”
Earlier this year at the Two Sessions (China’s largest annual meeting of the country’s top legislative and consultative bodies), attendees-for the first time- discussed plans to accelerate state support for advancing regulatory development and investments in the hemp industry. These plans, along with anticipated regulatory movements at the UN level, stand to create great opportunities to bring cannabinoid products and investments to the Chinese market.
“There is an increasing domestic demand in China for CBD products”, shared David Abernathy, VP of Research and Consulting at The Arcview Group. “Ultimately many products across health and beauty categories will be infused with CBD. Those who enter China’s market
early are likely to be well positioned to take advantage of the rapid growth of global CBD and other cannabinoid markets by developing the necessary infrastructure to allow rapid and cost-effective scaling.”
Compared with the United States and Canada, China’s domestic market is colossal, making it a potentially enormous source of demand for CBD. China leads global spending across multiple consumer product categories, including those impacted by CBD such as health and wellness, beauty, alcohol, and tobacco. The combination of seismic demographic shifts and rapid expansion in discretionary incomes contributes to forecasts calling for CBD demand to rise significantly in China’s domestic market, echoing CBD’s rapid growth in the West. While the long-term impact of COVID is uncertain, early indications are that consumer confidence is returning, with some 60% of Chinese consumers expecting to spend as much or more post COVID.
The market report on China’s hemp-derived cannabinoid industry, China: A Rising CBD Superpower, draws on two years of on-the-ground due diligence, including more than a dozen trips by Asia Horizon’s executives to the outskirts of Chinese provinces where the industry is being pioneered. Containing interviews of relevant industry participants, from government officials and public company CEOs to rural hemp farmers, the report bridges language, cultural, and political barriers. What emerges is a look into the future where partnership and investment in China’s hemp and CBD market will likely yield fruitful, near-term business opportunities along with long-term value creation. The full report will be available for complimentary download and with webinar registration.
Arcview Group and Asia Horizon will host a webinar to discuss China’s emerging hemp-derived CBD industry on August 13th at 9am PT/12pm ET. Co-hosted by John Downs, Executive Vice President of Asia Horizon, and Kim Kovacs, CEO of The Arcview Group, the webinar’s panelists include Brian Sheng, CEO of Asia Horizon, Geoff Whaling, Chair of National Hemp Association, Jennifer T. Lee, Managing Partner of Growth Platforms for Deloitte Canada, and Ron Wardle, CEO of Yooma Corp. (formerly CEO of leading Chinese e-commerce consultancy Export Now). Vivien Azer, Managing Director and Senior Analyst for Cannabis at Cowen will moderate the session. Event Registration: https://arcviewasia.com/.
About The Arcview Group
The Arcview Group blazed the trail for cannabis investments and is the largest and first vertically integrated firm servicing the industry. As a trusted global leader and nexus for investors, companies, entrepreneurs, money-managers and community, Arcview provides an expansive ecosystem that delivers a broad spectrum of programs and services to the industry. Arcview is synonymous with best-in-class. By providing the necessary tools and curating top-notch cannabis companies, Arcview created the playbook alongside our Investor Members, that have enabled them to invest hundreds of millions in more than 300 private cannabis startups. Furthermore, Arcview Market Research is the #1 source cited for market data, thought leadership and insights. In early 2020, Arcview Ventures was launched as a member-managed fund that pools resources and strategic alliances to make collective investment decisions. Additionally, Arcview Capital, a FINRA approved broker-dealer, was formed to meet the demand for later-stage funding and M&A. Arcview continues to expand novel programs, proprietary technology and platforms and its international footprint. For more information, please visit https://arcviewgroup.com/.
About Asia Horizon Group
Asia Horizon is a licensed producer focused on Asia’s emerging hemp-derived cannabinoid industry with an initial focus on China, where the company is developing a large-scale EU GMP-certified processing and production facility to provide low-cost cannabinoids for the global pharmaceutical supply chain and the emerging Chinese domestic market. The company is also beginning to distribute Western-branded cannabinoid consumer products in China. Asia Horizon aims to create positive change advancing the next frontier in the development of the global hemp industry. For more information, please visit https://asiahorizongroup.com/.
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