With cannabis forming an ever-greater part of economies across the world and garnering further traction in the legislation of numerous countries, market value is set to only increase. Not only this, however, with greater publicity comes greater opportunity, and with Latin America having represented itself as a leader of innovation, updates are regular and constant, hence the purpose of this article. We will be sharing some exciting news and projections from the last couple of months within the region, which, in conjunction with some of our older articles contextualising the markets of different countries, should hopefully get you excited about what is to come for legal cannabis in Latin America in the near future!
First, here is some background on what the industry looks like in the region at the moment. The market is worth approximately US$9.75 billion as of March 2021, covering legalised forms of cannabis from medicinal, industrial and recreational products, an already high figure despite the relative lack of legalisation across Latin America. Brazil currently has the largest market in Latin America, spending US$370 million per year on medicinal cannabis by 2027. Following on with this theme of projections, the regional market for recreational cannabis alone by 2024 is set to reach around US$300 million, emphasising the increasing acceptance of cannabis, with greater opportunities and returns to be found in the near future.
Recreational cannabis
March 2021: Mexico
The bill which was approved earlier this year provides hope that Mexico will follow Uruguay in legalising recreational cannabis in the near future depending on a couple more subsequent votes, paving the way for a frankly huge market opportunity due to the geographical advantages of Mexico in relation to both North America and the rest of Latin America. The stigma surrounding recreational cannabis is slowly changed due to decisions such as this, meaning while it is good for Mexican citizens looking to use cannabis recreationally, it is also a positive for the rest of the region, as the Mexican case study may provide a model for more countries to follow soon. If we are talking specifics, people would be able to carry 28g or less, have 6 plants at home, and over 18s would be able to buy it from licensed sellers. Permits would be required to grow any kind of marijuana plant for personal use, though.
Industrial cannabis
December 2020: Colombia
Hempfull, a Colombian company, set up with the intention of increasing the presence of industrial hemp in various sectors of the economy, provides evidence that 2021 will see expansion of the usually overlooked properties of cannabis. We have spoken about Hempcrete frequently on our blog, however, the applications of hemp in cosmetics, food and materials has a potential for growth as demonstrated recently in Colombia. The idea is to use old, traditional techniques alongside the modern, innovative hemp market in order to better the environment, as well as the quality of the textiles industry. With Colombian hemp market estimations of a 20% compound annual growth rate between 2021-2026, it is clear that the developments of late 2020 and early 2021 are setting the pace for things to come in the region.
Medicinal cannabis
February 2021: Mexico
For this, we will be heading back to Mexico, reiterating the drive for greater legislation of legalised cannabis in the country. In this instance, the focus is on medicinal cannabis, and specifically, the Khiron Life Sciences programme for postgraduates in medicinal cannabis which has gained international recognition. It is a virtual course with the TecSalud School of Medicine and Health Sciences, and while it is unusual news, it is extremely significant as one of the key obstacles for implementation of concrete legislation the world over surrounding cannabis is the lack of knowledge, and with this, imparting knowledge of medicinal cannabis to students from across Latin America and eventually the world, the gateway will be flung open allowing the market to experience exponential growth with the number of people with the appropriate knowledge to allow it to happen. The short-term goal is to facilitate the improvement of 1 million people’s lives that are affected by various illnesses with symptoms that can be eased by the use of medicinal cannabis products by 2024.