If a CBD brand wants to establish itself globally, Asia should definitely be an important part of its development strategy.
Despite the ongoing COVID-19 pandemic making international business more challenging, Asia looks set to lead the global recovery. Establishing a foothold in Asia now will put CBD companies in a prime position to reap the rewards of its emerging CBD market.
This article will look at why Asia will be such a crucial area for global CBD brands and why executives should be developing a strategy for the Asian markets. Here are five reasons why Asia should be a key part of your CBD brand’s global development strategy:
The first and most obvious point is that Asia is simply too big to miss for any CBD brand serious about operating globally. With around 4.5 billion people living throughout Asia, it accounts for more than half of the world’s population.
While many parts of Asia were once considered developing, and some still are, Asia is now home to around half of the world’s middle-class. Additionally, by 2026, the Asian Pacific is expected to account for around 60% of the world’s middle-class, showing it’s currently in a strong growth phase.
The CBD market in the West has matured over the last four years, and products have exploded in popularity with Western consumers. Meanwhile, the CBD market in Asia is still emerging, and laws and attitudes towards CBD in the region are gradually improving.
The CBD market is estimated to be worth more than $1.5 billion in the USA alone. In comparison, the entire CBD market in the Asia Pacific is estimated to be worth $322 million right now but is expected to be worth billions of dollars within the next few years. In particular, the Japanese market is expected to reach 1.9 billion CHF by 2024.
This shows that there is plenty of growth forecast ahead and plenty of opportunities for CBD brands entering the Asian markets. Unlike in the West, where the market is more saturated, competition is stiff, and leaders have already established themselves, Asia is more of an open playing field for brands trying to make a name for themselves.
In many parts of Asia, they have a long history of using traditional medicines and herbal remedies, and they are still popular today in places like China and Hong Kong. This connection that some Asian consumers have with plant-based remedies could mean they’ll be more open to exploring the health and wellbeing benefits that plant-based CBD products can offer.
Moreover, cannabis itself originated in Asia, and historically, hemp was commonly used for medicines, rope making, textiles, paper, and more. In Japan, hemp cultivation has been occurring for thousands of years.
With new positive scientific studies being published around the benefits of CBD, people’s attitudes in Asia towards it are gradually changing. Asia may see its rising CBD market as a way to reconnect with its long history of hemp cultivation and herbal remedies.
Another reason to build a foothold in Asia is to gain access to its talent pool and manufacturing capabilities. The Asia Pacific has become a strong producer and magnet for diverse talent, which CBD brands should tap into when expanding to Asia.
Hiring local talent within an Asian nation will help you better understand the local CBD market and business environment, helping you get off on the right foot and start generating revenue sooner.
Likewise, Asia is famous for its strong manufacturing capabilities and skilled workforce. Although international CBD brands don’t need to move all their production over to Asia, there are some obvious benefits of having diverse supply chains, such as reduced vulnerability to supply shortages and greater efficiency.
Also, products produced locally to where they’re sold tend to earn more favor with both consumers and policymakers.
Asia is the world’s fastest-growing region economically, some parts of the continent are still developing, and many markets are still emerging, such as the CBD market. Asia also has a median age of 32, meaning its population as a whole is younger than that of Europe and the USA.
The current economic rise in Asia coupled with a large working-age population to fuel it further helps create an overall exciting business atmosphere. Asia has also become an international hub for startups and entrepreneurs, which can be inspiring, and many of its major cities have advanced infrastructure that makes doing business easier.
All in all, developing a foothold in Asia now during this exciting growth phase can bring energy and vitality to your CBD business and helps you position your brand well for the future.
Whether it’s the enormous economic opportunities, exciting business atmosphere, or rich history and culture, there are many reasons why CBD brands should be making Asia a fundamental part of their global development strategy.
As the business world begins to recover from the recent pandemic, Asia appears to be the region set for the fastest economic growth. When coupled with Asia’s emerging CBD markets, now looks like the perfect time for international CBD brands to start establishing themselves in Asia.
Developing a foothold in Asia now could lay the groundwork for CBD companies to prosper from the growing CBD market for many years to come.