This article is from WeChat official account:Eleven people in finance and economics (ID: caijingEleven) , author: Ma Lin, Yang Li Yun, head FIG from: description for FIG. (Photo / Yang Li Yun, The picture shows the hemp skin care brand at the China Cosmetics Innovation Exhibition)

From being vigorously sought after by capital two years ago, to the worries and worries of the industry in recent days, and even cosmetics brands “talking about the color change”, China’s industrial hemp industry has been on a “roller coaster”.

On March 26, the China Food and Drug Administration issued the “Notice on Public Consultation on Revising Prohibited Ingredients in Cosmetics.” The “Opinions” proposed that in accordance with the national drug control policy requirements, hemp seeds, hemp seed oil, hemp leaf extract and cannabidiol are proposed to be used. (CBD) and other raw materials are listed as prohibited components of cosmetics, and are now open to the public for comments.

Screenshot from official website

A project investor in the industrial hemp industry told the Caijing reporter, “In the past few days, various industry groups have exploded. Some time ago, the industry’s expectations were still high. The news of the opinion draft was quite sudden. Now everyone They are all worried about the future policy direction.”

Although hemp has a long history of cultivation in China, China is already the world’s largest exporter of industrial hemp paper products and textile materials, but because hemp contains THC, which is used to make stimulants and drugs.< span class="text-remarks" label="Remarks">(THC), so in addition to paper products and textile industries, my country is very cautious in the development and application of industrial hemp. Cosmetics was once considered to be the only industry that may have substantial changes in policy.

Industrial hemp refers to a low-toxic variety with a THC content of less than 0.3%, which is a high-value economic crop. China occupies about half of the world’s industrial hemp cultivation area, and hemp will be exported in large quantities. Industrial hemp industry sources told Caijing reporter that policy changes will not affect the export of industrial hemp raw materials.

According to some brands, hemp ingredients can play a role in emollient, anti-oxidant, and allergic effects in cosmetics and skin care products. At present, cosmetics and skin care products with the concept of industrial hemp are still on sale on Taobao, but industry insiders told Caijing reporters that it is not clear whether they will be removed from the shelves in the future.

1. Cosmetics brand “talking about hemp color change”

On March 29, a reporter from Caijing visited the China Cosmetics Innovation Exhibition. In the domestic brand hall, most of the brand owners “talked about hemp discoloration” and said that they did not use industrial hemp ingredients. A promoter of the medical dressing brand Fuerjia said: “Now the country has banned it, so what CBD are you looking for.” The agent of another brand, Ximuyuan, which contains hemp ingredients, is reluctant to talk more, just saying that they are waiting. The opinion of the brand side.

There are also some brands that have launched products containing hemp ingredients. As the current stage of soliciting opinions, manufacturers and distributors are waiting and watching and will not withdraw first.

Kosmic cosmetics giant Cosmic exhibited its “Audrey” brand. The brand’s main product is hemp extract skin care products. The product packaging is dark green with hemp leaves printed on the box. Audrey has launched products such as Live Yan Essence, Moisturizing Eye Cream, Cleanser, Facial Mask, etc., all of which contain cannabis extract and are also marked in the product ingredients.

An Audrey promoter introduced that these products are produced in Shanghai and will be launched on Taobao in February 2021. Currently, they are mainly sold in Taobao.

The promoter said that due to recent policy uncertainties, many exhibitors have come to ask whether hemp skin care products can continue to be sold. He said that in the past, large and small companies entered the cannabis field, but the industry is not yet regulated. Now the country may have to strictly control it. As the current stage of soliciting opinions, including manufacturers, distributors, and consumers, everyone is watching and will not withdraw first.

He admitsTherefore, if the final “one size fits all” prohibits the sale of industrial hemp products at all, then these brands will no longer exist. If the final policy implementation is to raise industry standards, it will be good for large companies like Cosmos, because the industry is shuffled and small companies will be eliminated.

The hemp skin care brand at the China Cosmetics Innovation Exhibition. Photography/Yang Liyun

Shanghai Meilan Cosmetics Co., Ltd. focused on promoting hemp skin care products this time. According to the staff, the company is a large-scale OEM factory that manufactures for many brands such as Natural Hall. However, most well-known brands have not yet set foot in cannabis. Meilan’s cannabis skin care products are currently supplied with two wechat brands.

Meilan produces hemp products because Yunnan Huayun Jinxin Biotechnology Co., Ltd., which is controlled by its parent company Shenzhen Datong, has the legal qualifications for hemp cultivation and processing, and can form a whole industry chain within the group.

The staff member said that during the current consultation period, various companies will speed up the filing of the State Drug Administration. As long as the filing is successful before the state stops, it will still be able to sell cannabis products in the next three years.

The promoters of Hangzhou Chuanxi Technology Co., Ltd. said that one of the Japanese skin care brands that the company represents has a hemp product that has been approved and has not yet been listed.

A promoter of the skin care brand Meijiafen said that industrial hemp skin care is a false concept, and many other plant extracts have similar effects, but consumers are excited and curious when they hear the word “marijuana”. Enterprises have seized on marijuana to make a fuss.

On the booth of Shenzhen Dameiren Biological Technology Co., Ltd., there is a “Baitrasi jet lag morning and night water injection cream”. The promoters said this product contains hemp ingredients and is currently sold in all channels. There is indeed hemp leaf extract in its product introduction.

II. The industrial hemp industry waits for the implementation of the policy

Two years ago, there was a spring breeze in the industrial hemp industry. At that time, many industrial hemp concept stocks continued their daily limit. The reason was that many listed companies obtained industrial hemp planting licenses. For example, in early 2019, the three subsidiaries of the biomedical company Kang Enbei (600572.SH) successively obtained the “Industrial Hemp Planting License in Yunnan Province” , Approved a total of 24,000 acres of industrial hemp planting area.

According to a reporter from Caijing, my country’s industrial hemp production license is issued by the Provincial Public Security Department. According to industry statistics, there are currently about 16-20 companies that have industrial hemp planting licenses in China. At the same time, about 16 companies are eligible to extract contents from cannabis, among which Yunnan Province has issued 14 licenses and Heilongjiang Province has issued two licenses.

Industry insiders pointed out that the current licenses issued by Heilongjiang are based on the approval system. Enterprises can only produce and operate after officially obtaining the approval documents. The licenses issued by Yunnan Province include planting licenses, extraction licenses, and pre-licenses. The company that purchases the license has not obtained a formal license, but it can cultivate and produce in a small-scale laboratory while waiting for further approval.

So far, the only provinces in China that allow and regulate the cultivation of industrial hemp in the form of regulations are Yunnan and Heilongjiang. In 2010, Yunnan Province promulgated the “Provisions on the License for the Planting and Processing of Industrial Hemp in Yunnan Province”, which requires a license for the cultivation and processing of industrial hemp, and detailed requirements for transportation, storage, and operation. The relevant approval and supervision are all the responsibility of the public security department.

Heilongjiang, in the new “Heilongjiang Province Drug Control Regulations” in 2017, clearly distinguished between industrial hemp and drug hemp, and required the filing of the cultivation, cultivation, processing, and sale of industrial hemp.

In 2018, Jilin Province once stated that it would liberalize the scientific research, breeding, industrial planting, and industrial product processing of industrial hemp.

In recent years, industrial hemp has been considered a promising sunrise industry in China, especially in the fields of cosmetics and skin care products. The legalization of recreational marijuana in Canada, as well as countries such as the United States, Australia, the Netherlands, and New Zealand, are also very important backgrounds for the legalization of marijuana for recreation, medical, and skin care.

There are currently many brands selling hemp skin care products on e-commerce platforms. But an investor in the industrial hemp industry told the Caijing reporter that the industrial hemp industry does need stronger policies because there are many irregularities in the market.

For example, although CBD is not allowed to be added to cosmetics, some brands do add CBD, and some claim to add CBD ingredients but do not add it, “just to lose the heat.”

CBD, also known as cannabidiol, contains functional ingredients and is a substance that the industrial hemp industry is vigorously promoting the use of it. It was recognized by the World Health Organization at the end of 2017 and was included in the international list as an uncontrolled substance .

However, CBD has not been included in the catalog of cosmetic raw materials in my country. In China, brand owners cannot add CBD to cosmetics at will, they need to declare in accordance with the requirements of new raw materials. According to the provisions of the “Used Cosmetic Raw Materials Catalog (2015 Edition)”, my country allows the addition of hemp seeds, hemp seed oil, and hemp leaf extracts to cosmetics.

The above-mentioned person stated that there are also some Taobao stores that sell products with cannabis added, which are actually oral products, but the package says “essential oil”(Essential oils are external products), because products containing cannabis can only be used in cosmetics, and oral products are not cosmetics. “A lot of people are eager to make money, but they don’t really understand professional knowledge.”

The person pointed out that Currently, domestic consumers do not have high awareness of cannabis-containing cosmetics. There were European and American hemp cosmetics brands that wanted to enter China, but because the domestic sales were too low, the company for this person did not have an agent.


This article is from WeChat official account:Eleven people in finance and economics (ID: caijingEleven) , author: Ma Lin, Yang Li Yun