Latin America Cannabidiol (CBD) Market

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Latin America Cannabidiol (CBD) Market

Key Takeaways

  • According to an article by the LatinAmerican Post, the CBD market in Latin America is currently valued at $9.8 billion and is expected to grow at a CAGR of 20.2 percent between 2021 and 2026.
  • Statista reported that the Argentine cannabis market had an estimated value of $1.1 billion in 2019 and that the medical cannabis market in Argentina is projected to reach $753.4 million by 2028, while the recreational and industrial markets are expected to reach $371.1 million and $1.1 million, respectively.
  • A report by Statista stated that in 2020, the CBD market in Uruguay was estimated to have an approximate value of $4 million and is expected to reach $5.5 million by 2024.

Introduction

As mentioned in the initial round of research, data availability surrounding the consumer and commercial cannabidiol (CBD) markets in Argentina, Paraguay, and Uruguay is low to limited in the public domain. As a result, finding qualitative and/or quantitative insights into the consumer and commercial CBD markets of these countries proved to be difficult, and we were forced to expand our scope to include the general cannabis market in some instances. Relevant insights surrounding the cannabis markets in Argentina, Paraguay, and Uruguay have been provided below. We have also included some of the insights found during the initial hour of research for a more comprehensive report.

Latin America CBD Outlook

  • Due to years of violence stemming from drug trafficking, Latin America has a complicated history with cannabis. However, several Latin American countries are “finally taking steps to create legal markets for cannabis and CBD products although business opportunities for domestic retail sales are still limited.”
  • Cannabis sales in Latin America in recent years as reported by Brightfield Group, a leading research firm for emerging markets including CBD, cannabis, and wellness, can be seen below.
  • However, according to an article by the LatinAmerican Post, the CBD market in Latin America is currently valued at $9.8 billion and is expected to grow at a CAGR of 20.2 percent between 2021 and 2026.

CBD Legal Status in Argentina, Paraguay, and Uruguay

  • As of September 2020, Argentina allowed CBD use if prescribed by a doctor for medical purposes. In addition to a doctor's prescription, the country’s process “requires that there be scientific evidence that CBD can help the condition.”
  • In Paraguay, CBD is “legal for medical use by people with intractable conditions thus users can only access CBD if they have a certificate from a recognized physician.”
  • On the other hand, in Uruguay, CBD is legal for both medical and recreational use provided that the THC content is 1% and below. Additionally, before farmers can grow hemp, they need to apply for a permit with the Ministry of Agriculture.

Relevant Insights into Argentina, Paraguay, and Uruguay's Cannabis Markets

    Argentina

  • Statista reported that the Argentine cannabis market had an estimated value of $1.1 billion in 2019 and that the medical cannabis market in Argentina is projected to reach $753.4 million by 2028, while the recreational and industrial markets are expected to reach $371.1 million and $1.1 million, respectively.

    Paraguay

  • The cannabis market in Paraguay appears to be one of the promising markets in Latin America especially after the government’s “recent decision to trial a licensing process for cannabis production in its territory.”
  • While people have been allowed to import cannabis in Paraguay for medical use since 2018, “each case for doing so is assessed individually and only small amounts have been brought into the country due to costly import prices.” However, this is set to change after the country “offered 5 licenses permitting cannabis cultivation and manufacturing of medicinal cannabis products.”
  • Additionally, although Paraguay is one of the main producers of cannabis in South America, it does not allow its recreational use. Biz Latin Hub reported that Paraguay “authorized the importing of cannabis oil in May 2020, under the control of the health ministry.”

    Uruguay

  • A report by Statista stated that in 2020, the CBD market in Uruguay was estimated to have an approximate value of $4 million and is expected to reach $5.5 million by 2024.
  • Another report published by Statista in July 2021 revealed that the market value of recreational legal cannabis in Uruguay is expected to stagnate at around $3 million between 2020 and 2024.
  • As of 2018, approximately 9% of the total population in Uruguay used regulated cannabis for medical, recreational, and industrial purposes. This figure increased to 11% in 2020 with the illegal cannabis market accounting for the remaining 89% of users.

Research Strategy

To find qualitative and/or quantitative insights into the consumer and commercial cannabidiol (CBD) markets in Argentina, Uruguay, and Paraguay, we leveraged the most reputable sources that were available in the public domain, but information availability was low to limited. Thus, we were forced to expand our scope to include insights into the general cannabis market in some instances. We leveraged information from sources such as Statista, Brightfield Group, and Biz Latin Hub to compile the findings above.
Sources
Sources