Japan's hemp market offers a real opportunity for international suppliers, despite strict regulation and specific requirements. In 2023, the country imported 416 tonnes of hemp seeds worth a total of USD 1.8 million, which points to steady demand for these products.
Key market indicators
- 416 tonnes — hemp seed imports in 2023
- USD 1.8 million — total value of imports
- Minus 4% — average annual rate of decline in seed imports
- 72% — China's share of imports
Economic foundation
Japan's economy, the fourth largest in the world with a GDP of USD 5.76 trillion, provides a solid foundation for the development of specialized markets. With a population of 126 million and a GDP per capita of USD 46,400, Japan is an attractive market for premium hemp products.
Import dynamics
Hemp seed imports show an interesting trend: despite an average annual decline of 4%, the market peaked in 2020 and is showing signs of stabilization. China dominates supply with a 72% share, while Canada ranks second with 19.6% of the market.
Hemp seeds and hemp oil have attracted significant attention for their nutritional properties and versatility of use. Hemp meal — a by-product of oil extraction — is also gaining popularity as a sustainable and nutritious alternative in animal feed.
Market drivers:
- Consumer awareness — growing understanding of the nutritional value of hemp
- Legal framework — strict regulation ensures product quality
- Technological advances — innovations in hemp processing and applications
Japan's key demographic and economic indicators
- Head of state: Emperor Naruhito
- Form of government: unitary parliamentary constitutional monarchy
- Capital: Tokyo
- Population: 126 million (2020 census)
- GDP: USD 5.76 trillion (world's fourth-largest economy)
- GDP growth: 1.9% (2022)
- GDP per capita: USD 46,400 (2024 estimate)
Japan is located in the northwestern Pacific Ocean: it is bordered to the west by the Sea of Japan, extending from the Sea of Okhotsk in the north to the East China Sea, the Philippine Sea, and Taiwan in the south. The country is part of the Pacific Ring of Fire and comprises an archipelago of 14,125 islands.
Hemp seed imports into Japan by country
Total hemp seed imports into Japan for 2019–2023 amounted to USD 11.27 million. The breakdown by supplier country:
- China — USD 8.09 million (71.8% of imports), average annual change minus 2.9%
- Canada — USD 2.21 million (19.6%), change minus 19.4%
- France — USD 0.4 million (3.6%), change plus 34%
- Lithuania — USD 0.23 million (2%), change plus 184.2%
- Australia — USD 0.22 million (2%)
Imports peaked in 2020 and then declined. EU countries increased their market share, while Canadian imports fell by more than half.
Structure of use and applications
Japan's hemp market is characterized by a clear division of applications. About 80% of imported seeds are used as bird feed, with the remaining 20% directed toward human consumption. The market is served by roughly 20 companies, with up to 40 companies working with products for human consumption. The largest seller of hemp seeds for human consumption is the Costco chain.
The traditional use of hemp seeds in Japan is linked to the production of shichimi — the classic Japanese seven-spice seasoning. All producers of this seasoning use exclusively imported hemp seeds, a sign of the reliance on external supply.
Modern hemp products on the Japanese market:
- Hemp hearts (hulled seeds)
- Hemp protein
- Hemp milk
- Hemp bars
Canada's presence in the market
Canada holds a special position in Japan's hemp market as the second-largest supplier of seeds. Manitoba leads among Canadian provinces with a 64.2% share, followed by Alberta (32.1%) and British Columbia (3.7%).
Canadian products sell at prices three times higher than Chinese ones thanks to a reputation for high quality. Japanese buyers value the strict quality-control standards applied from farm to plant.
Hemp oil and meal exports from Canada
Statistics on hemp oil are limited: import data is grouped with other oils under general customs codes. It is known that total Canadian oil shipments over five years amounted to 38,451 kg, with an average annual decline of 31.9%; Manitoba accounts for 72% of the volume.
Hemp meal exports, by contrast, are growing: in 2023 they reached USD 784,014. Total exports over five years stood at 13.2 million kg, with average annual growth of 22.8%; Manitoba's share was 67.3%.
Regulatory environment and requirements
Japan's regulation of hemp is characterized by strictness and detail. The principal laws include the Foreign Exchange and Foreign Trade Act, the Cannabis Control Act, the Plant Protection Act, and the Food Sanitation Act.
The Ministry of Health, Labour and Welfare applies a zero-tolerance policy toward THC: imported industrial hemp products must not contain narcotic substances. Mandatory heat treatment at 90 °C for one hour prevents seed germination, while germination tests take 1–2 weeks.
The import procedure involves five steps:
- 1. Exporters provide heat-treatment certificates
- 2. Importers submit a certification request
- 3. Germination tests are conducted (1–2 weeks)
- 4. The Ministry issues a certificate of approval
- 5. Customs clearance
Trade relations and agreements
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) creates favorable conditions for Canadian exporters by eliminating or reducing tariffs on key goods, including agricultural and agri-food products. In 2023, Canada's exports to Japan amounted to USD 15.8 billion, while imports came to USD 20.7 billion. Japan ranks third among Manitoba's agri-export destinations.
Innovation and new products
Japan's hemp market is going through a period of innovation. In 2021, Endian LLC, partly funded by Coca-Cola Bottlers Japan Inc., launched the Chill Out relaxation drink made with hemp seeds. The product is selling successfully in stores and vending machines.
The brand Hello Products LLC (part of Colgate-Palmolive) released a line of personal-care products based on hemp oil: toothpaste, mouthwash, and dental floss.
The food industry accounts for about 50% of all hemp use in Japan. Other applications include personal-care products, dietary supplements, animal feed, and industrial products. The global hemp market is projected to grow at an average annual rate of 22.4% from 2024 to 2032.
Conclusion
Japan's hemp market is a niche but stable segment with room to grow. Strict regulatory requirements create barriers to entry but, at the same time, enable premium positioning for high-quality products. Canadian suppliers hold competitive advantages thanks to their reputation for quality, despite price competition from Chinese producers.
The market's future is tied to innovation in the food industry and the expanding use of hemp products across various sectors. Companies prepared to meet Japan's strict standards can count on access to one of the most demanding and high-spending markets in the world.
Key takeaways:
- Steady demand for high-quality products
- Premium positioning for suppliers with a reputation for quality
- Growing innovation in the food industry
- Market growth potential over the medium term
This is what we make
Our own full-cycle plant in the Uzlovaya SEZ. Wholesale, EAEU documents, 0% THC.
Hulled hemp hearts (separated)
Protein over 30% · omega-3/6
Cold-pressed green hemp seed oil
Omega-6 : omega-3 = 3.5 : 1
Hemp protein flour
Protein 40–45 g/100 g
We’ll match a product to your production need and send samples with documents.