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Views: 0 Author: Site Editor Publish Time: 2026-07-18 Origin: Site
CBD is one of the most important extracts of phytocannabinoids. In 1940, Adams and Todd isolated CBD from Mexican and Indian cannabis. Subsequently, Mechoulam and Shvo identified its exact chemical structure in 1963. CBD has attracted increasing attention due to its wide range of pharmacological effect and properties.Unlike THC, cannabidiol has no psychoactive properties, is non-addictive, non-toxic, and has a wide range of pharmacological effects. In recent years, research on cannabidiol has continued to deepen, the legal scale of industrial hemp cultivation worldwide has been expanding, and the global cannabidiol industry market has been heating up continuously.
The industrial chain of cannabidiol includes upstream hemp breeding and cultivation, midstream cannabidiol processing and extraction, and downstream cannabidiol derivative applications. In these links, "germplasm resources" and "processing licenses" restrict the development of the industry, and terminal products are also subject to the policy environment, resulting in significant risks.
Upstream - Breeding and Planting
01
Seed sources are the starting point for the development of the industrial chain and also a bottleneck factor restricting industrial development.
Yunnan Suma Biotechnology Co., Ltd. and the Institute of Bast Fiber Crops, Chinese Academy of Agricultural Sciences have successively bred a series of special new industrial hemp varieties: Zhonghanma 1, 2, 3, and 4. The average cannabidiol contents are 3.19%, 3.22%, 4.22%, and 4.29% respectively [1-2]. Among them, Zhonghanma 1, bred in 2019, is the first medicinal industrial hemp variety with a CBD content higher than 3% in southern regions such as Yunnan, China. Even so, compared with seeds from North American countries that can reach more than 10%-20%, there is still a nearly 10-fold gap in China.
In terms of cultivation, growers in China must hold an "Industrial Hemp Cultivation License" to engage in cultivation. Considering issues such as indoor costs and light control, China currently mainly relies on outdoor field cultivation.
Midstream - Processing and Extraction
02
The content of CBD in various parts of industrial hemp usually decreases in the order of bracts, flowers, leaves, fine stems, and thick stems, with the highest content in the flowers and leaves of female flowers. Therefore, flowers and leaves are usually chosen for CBD extraction.
The mainstream CBD extraction processes are "solvent extraction" and "supercritical carbon dioxide extraction", with extraction purities ranging from 10% to 99%. Currently, it is difficult to extract pharmaceutical-grade CBD with a purity of over 99% from plants during the extraction process, which is also a key focus of research and development in the processing and purification stage. With the aim of improving the purity and quality of CBD, enterprises from various countries have focused their research efforts on extracting from different plants and actively promoting the artificial synthesis of CBD.
Downstream - Derivative Applications
03
CBD-derived products are mainly divided into five major application categories: daily chemical products, food and beverages, biopharmaceuticals, new-type tobacco products, and pet supplies.
China's strict control over cannabis and its extracts has led to a large gap in the downstream of the domestic cannabidiol industry chain. Before 2021, there was only one downstream sector, namely daily chemical products, in China. However, as more and more companies developed cannabidiol cosmetics, considering that this phenomenon would cause the public to lower their vigilance against cannabis, in 2021, the National Medical Products Administration officially listed cannabidiol as a prohibited raw material in cosmetics in the "Catalogue of Prohibited Raw Materials for Cosmetics" and the "Catalogue of Prohibited Plant (Animal) Raw Materials for Cosmetics", further compressing the terminal market of the domestic cannabidiol industry.
Due to the extensive application value of cannabis and its derivatives in various fields, countries around the world are actively promoting the issuance of policies. Policies related to industrial hemp are gradually being liberalized, while vigorous efforts are made to develop related industries, accelerating the global process of cannabis legalization. For example, after the United States introduced the U.S. Farm Bill in 2014, which allowed industrial hemp pilot projects and research, industrial hemp cultivation business developed rapidly in the United States. In 2018, Trump signed the 2018 Farm Bill, which removed industrial hemp from the Controlled Substances Act. The U.S. Food and Drug Administration allows cannabidiol to be sold in pharmacies along with prescription drugs and is considering making cannabidiol available over-the-counter. Up to now, 36 states in the United States have legalized medical cannabis, among which 13 states have legalized both medical and recreational cannabis. The cannabis market has a promising future.
Industrial hemp in China is mainly grown in three provinces: Yunnan, Heilongjiang, and Jilin. To accelerate the development of the industrial hemp industry, these three provinces have successively introduced a series of encouraging policies.
The global market size of legal cannabis and cannabis derivatives was $12.8 billion in 2020, and it is expected to grow at a compound annual growth rate (CAGR) of 26.3% from 2021 to 2028. Consumer demand for cannabis in medical and recreational aspects is increasing day by day, and more and more companies are also expanding the market for cannabis products. The increasing legalization of cannabis products and the awareness of the health benefits of cannabinoids are key factors driving market growth.
United States: The Main Investment Venue for the Cannabidiol Industry in North America
In 2019, the U.S. cannabidiol market was hit by the COVID-19 pandemic. Many cannabidiol brands faced operational difficulties, and the overall price of CBD showed a downward trend. By the autumn of the second quarter of 2020, driven by e-commerce, the cannabidiol market began to recover, with sales increasing by 14% compared to the 4.2 billion U.S. dollars in 2019. Many cannabidiol brands shifted their business models from physical sales to online sales and achieved success. With the normalization of the COVID-19 pandemic, physical sales channels for cannabidiol began to reopen in 2021, and subsequently, offline market sales also increased. Since 2021, on the basis of the original fields such as pharmaceuticals and electronic tobacco, products such as tinctures, gummies, capsules, and beverages have emerged in the U.S. cannabidiol market, and they have occupied a large market share. By 2025, the U.S. CBD market is expected to reach 16.8 billion U.S. dollars.
Europe: The second largest CBD market after the United States
Europe is the second-largest CBD market after the United States, covering major countries such as Germany, the United Kingdom, Italy, France, Spain, Switzerland, the Netherlands, Belgium, Russia, Denmark, Sweden, Poland, and Turkey. According to the "EU CBD Consumer Report" released by New Frontier Data in 2020, the European CBD market consumption in 2020 was approximately 9.75 billion U.S. dollars, among which the annual expenditures of Germany and the United Kingdom were 2.17 billion U.S. dollars and 2.03 billion U.S. dollars respectively, accounting for 23% and 21% of the European market. (Source: New Frontier Data)
China: The world's largest planting area of industrial hemp
According to the "China Agricultural Statistical Yearbook" and statistical data from the Food and Agriculture Organization of the United Nations, China is the country with the largest industrial hemp cultivation area in the world, accounting for approximately half of the global total, and its output accounts for 25% of the world's total output of raw industrial hemp. Currently, the industrial hemp cultivation area in China is about 1 million mu. Among them, the industrial hemp cultivation area in Heilongjiang is about 400,000 mu, and that in Yunnan is about 200,000 mu. In addition, it is also grown in Jilin, Inner Mongolia, Anhui, Shandong, Shanxi, Guangxi and other regions. There are over 50 enterprises in China with industrial hemp cultivation licenses and about 10 with processing licenses.
That said, China's CBD industry is still in the early stage of development, mainly because the entire industry chain from upstream to downstream is subject to strict policy restrictions. To prevent hemp extracts with excessively high tetrahydrocannabinol (THC) content, which could be used as drugs, from entering illegal channels, domestic enterprises must apply for CBD extraction in accordance with the regulatory requirements for drug-type cannabis and can only proceed with production after obtaining approval. When importing or exporting CBD, a permit for the import (export) of psychotropic substances is required. Moreover, the application of CBD has not yet been permitted in China. This has led to extremely limited domestic demand for CBD at this stage, and the CBD produced by Chinese enterprises is mainly exported to the United States for use by drug researchers.
Hong Kong, China: A market that domestic and foreign manufacturers are rushing to enter
In the Hong Kong region, the use of CBD is not regarded as a dangerous drug controlled under Chapter 134. For pharmaceuticals containing CBD but no other dangerous drugs, they can be sold or distributed after being registered with the Pharmacy and Poisons Board in accordance with the provisions of the Pharmacy and Poisons Ordinance (Chapter 138). Starting from the beginning of 2020, domestic and overseas CBD manufacturers have successively entered the Hong Kong CBD market, covering fields such as food, beverages, and cosmetics. Subsequently, they have launched products in these corresponding fields one after another and received good market feedback.
At present, China has filed 171 patents in the application field of cannabidiol (CBD), among which 135 are under examination, 25 are valid, and 11 are invalid, accounting for 78.95%, 14.62% and 6.43% respectively. Most of the invalidation reasons are withdrawal and rejection. From the perspective of patent protection types, this field is mainly protected by invention patents, accounting for 98.83%. In the application field of cannabidiol (CBD), there are many patents under examination and valid patents, with a high degree of technological innovation.
The number of patent applications for cannabidiol (CBD) application fields in China generally shows a developing trend, especially after 2015, when the number of patent applications gradually increased, reaching a peak of 44 patents in 2019, indicating that domestic market attention is gradually rising. At the same time, the number of granted patents also shows an upward trend, which indicates that the authorization prospects for this technical direction are good.
Although China has strictly regulated and restricted the production, processing, and use of cannabidiol in terms of policies, a large number of foreign applicants have still increased their attention to the Chinese market. Among the relevant patent applications in China, 78 patents were filed by foreign applicants, accounting for 46%; 93 patents were filed by domestic applicants, accounting for 54%. Moreover, foreign applicants started their patent layout nearly ten years earlier than various domestic innovation entities.
Among the innovation entities in the application field of cannabidiol in China, enterprises account for the largest proportion, making up 93% of the total; the number of patents held by individuals and research institutes is relatively small, accounting for 4% and 3% of the total respectively.
It can be seen from the ranking of the top 10 applicants that foreign applicants occupy 6 seats, while domestic applicants only account for 4.
Due to its unique geographical conditions, China has become the country with the largest industrial hemp cultivation area in the world. However, due to prejudices against hemp and strict policy restrictions, China's development in the industrial hemp industry and cannabidiol industry started relatively late, and the industrial chain structure is also incomplete. The current development status of China's cannabidiol industry is as follows:
The downstream application market for cannabidiol (CBD) in China has further contracted. Policy restrictions are strict, and the industrialization process is slow.
The complete industrial chain of cannabidiol includes upstream hemp breeding and cultivation, midstream cannabidiol processing and extraction, and downstream cannabidiol-derived applications. Currently, only Yunnan Province, Heilongjiang Province, and Jilin Province in China have policies related to the development of the industrial hemp industry. In terms of supervision, there is no specific department in China for the industrial hemp industry, but scientific research, cultivation, processing, and product sales of industrial hemp all require strict approval from the Public Security Bureau. At the same time, multiple departments such as the Ministry of Agriculture, the National Development and Reform Commission, the Ministry of Commerce, and the National Narcotics Control Commission jointly supervise the cultivation, processing, and circulation of industrial hemp. In the field of CBD applications, due to domestic policy restrictions, there are certain negative impacts on the development of the CBD industrial chain, and the demand for CBD in application fields is extremely limited.
In contrast, European and American countries have a clear product chain for cannabidiol, with complete supporting policies and rapid industrial development. Europe and the United States have a complete and open industrial chain covering the upstream, midstream, and downstream of cannabidiol. Especially in the United States, 36 states have already legalized medical marijuana, among which 13 states have legalized both medical and recreational marijuana. It is expected that at least 8 more states will legalize recreational marijuana this year. Supported by complete supporting policies, the cannabidiol industry in Europe and the United States is developing rapidly. In 2019, the market size of cannabidiol in the United States exceeded 4 billion U.S. dollars; in 2020, the consumption of the European CBD market was approximately 9.75 billion U.S. dollars.
Foreign companies are actively making business layouts in Hong Kong, China, waiting for the opening of mainland policies to enter the mainland market in one fell swoop. The number of patent applications in China by domestic and foreign enterprises is quite similar. Once the domestic policies are opened, Chinese enterprises will not have an advantage.
Since the beginning of 2020, domestic and foreign cannabidiol manufacturers have successively entered the Hong Kong CBD market, including food, beverages, cosmetics, etc. For example, in January 2020, OH CBD Beer, a Hong Kong startup craft beer company, took the lead in launching the first CBD craft beer; in June 2020, Joyce Beauty, a high-end beauty store in Hong Kong, launched three CBD brands: Natureofthings, Saint Jane, and Treaty. The CBD products sold include not only body lotions, facial serums, brightening lotions, and lipsticks for skin care, but also sublingual tinctures for relaxing emotions, body ointments for relieving muscle pain, etc.; in August 2020, Australian company Altum International opened Hong Kong's first CBD café - Found Coffee; in November 2020, Canadian CBD company Pure Sunfarms cooperated with Found Coffee and Lane Crawford to launch CBD gummies, chocolates, bath salts and other creative CBD products.
Among the patents applied for in mainland China, 78 patents were applied by foreign applicants, accounting for 46%, and 93 patents were applied by domestic applicants, accounting for 54%. The number of patent applications in China by domestic and foreign enterprises is quite similar. This shows that foreign applicants have already made a large number of patent layouts in the field of cannabidiol in the mainland in advance. Once China opens the cannabidiol market, the mainland market may be quickly occupied by foreign enterprises, while Chinese enterprises will lose the first-mover advantage due to fewer innovative achievements and restrictions of the patent system.
In conclusion, as the global cannabidiol (CBD) industry accelerates its compliance process and domestic and international markets continue to expand, the CBD industrial chain is ushering in unprecedented development opportunities. During this critical transition from "unregulated growth" to "standardized development," the midstream processing and extraction stage serves as the core hub connecting upstream cultivation with downstream applications. Its technological barriers and production efficiency directly determine an enterprise's market competitiveness. Therefore, highly efficient, precise, and compliant CBD extraction production line equipment is not only a crucial tool for breaking through the technological bottlenecks of high-purity pharmaceutical-grade CBD extraction and upgrading the industrial chain, but also the core cornerstone for enterprises to seize global market opportunities and prepare for future policy liberalization. Facing broad market prospects and fierce international competition, relevant manufacturing enterprises should seize policy dividends and market demands, continuously increase R&D and technological innovation investments in CBD extraction production line equipment, and empower the high-quality development of the entire industrial chain with high-quality and intelligent equipment.
