The firm behind US-based CBD skin care brand BOTA, Balanced Health Botanicals, says it will no longer invest in the APAC after China announced its proposal to ban the use of cannabis and cannabis extracts in cosmetics.
The news of the potential cannabidiol (CBD) cosmetics ban came as a shock to the company which also owns CBD health and wellness brands CBDistillery and CBDistilleryRx.
“I’ve been trying to wrap my head around it and figure out exactly why. It seems a bit aggressive. I was shocked to see that it was not just CBD but also hemp oils. China has been a huge producer of hemp for thousands of years and the only thing I can think of is that they are having trouble distinguishing hemp from marijuana,” said Chase Terwilliger, CEO, Balanced Health Botanicals.
The Health Promotion Levy taxes applicable beverages at around 10%.
The tax was announced in 2016 and
introduced in 2018: with sugar reduction starting after the announcement in 2016, reveals the study conducted by the University of the Witwatersrand (South Africa) and University of North Carolina (US).
Reductions, however, were greater after the tax came into effect: and the authors say their study offers an insight into the tax’s unique design based on sugar content (each gram of sugar beyond 4 g per 100 mL is taxed).
While countries such as the UK have championed the effectiveness of sugar taxes, the South African study provides an insight into how a tax can work in countries with different underlying incomes and levels of beverage purchases, add the authors.
COVID-related delays and demand for planet-safe products are among the challenges that sunscreen makers will have to tackle in terms of testing in 2021.
John Staton, the Scientific Adviser of Eurofins cosmetics and personal care solar testing facilities, noted that testing sunscreen typically comes with certain challenges brands have to be prepared to take on.
“At this point in time, there s really no option but to test [SPF] on human backs and then there are some in vitro methods under development at ISO. It also involves broad spectrum tests, which can be in vivo, and there are some other methods now for in vitro that most companies would use because it’s cheaper to perform and quicker.”
China’s proposal to ban the use of cannabis and cannabis extracts in cosmetics will likely affect sales via cross-border e-commerce channels as the authorities double down on ‘anti-drug’ education.
Stronger local connections and a proactive approach with regulators are some of the ways regulatory experts believe can help cosmetics regulation in Asia Pacific become as harmonised as possible.
A panel of experts was gathered for the Global Fragrance Summit organised by the International Fragrance Association (IFRA) to discuss the cosmetic regulatory challenges facing APAC, including the potential for regulatory harmonisation in the region
“The reality is there is not much coordination happening at the national level,” said Gil Perez of the Singapore Chemical Industry Council (SCIC).
“From an industry standpoint, there s a vested interest for us to be more internally connected with industry associations at the ground level… and make sure we are able to make the regulators see those differences or overlaps.”