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In recent years, the cannabis industry in South America has shown tremendous potential to become the fastest-growing CBD market behind the EU and North America. According to statistics, the cannabis market in Latin America is expected to grow exponentially by 2025, with the market projected to reach $44.8 billion. [1]
Countries like Uruguay, Columbia, Brazil, Argentina, Peru, Chile, and Ecuador have taken steps toward legalizing cannabis both medicinally and recreationally, which is why the market in South America is seeing such growth. With these countries leading the cannabis market from strength to strength, it has made the cannabis business more appealing, with several cannabis-related ventures coming to fruition over the last decade.
Cannabis businesses in South America now include everything from processing, cultivation, and distribution to retail, research, and pharmaceuticals. As more countries begin to hop on the lucrative cannabis business bandwagon and international investments in the cannabis sector in South America increase, it’s an excellent idea to know the business and market trends.
That’s why this blog dives into the cannabis business and markets in South America. After reading what’s discussed, you should better understand how this region’s cannabis industry is growing and why it’s significant.
Cannabis Business Market Trends On A Global Scale
Before taking a more in-depth look into cannabis business trends and market statistics in South American countries, it’s important to understand the cannabis business market globally.
Based on recent statistics, the global cannabis market was valued at approximately $33.84 billion in 2024 and is estimated to grow at a compound annual growth rate (CAGR) of 15.4%, reaching around $69.25 billion by 2029. [2]
Evidently, globally, the cannabis industry is experiencing rapid growth, which is being driven by the increasing legalization and decriminalization of recreational and medicinal cannabis across countries, including Canada and many found in South America.
Some nations like Mexico and Germany are moving toward similar reforms, and even the United States is seeing more legalization across states. In particular, states like California and Colorado are seeing key market activity, with these states significantly contributing to the country’s cannabis market growth.
It’s important to note that although recreational legalization is occurring, more nations are legalizing the cannabis business for medicinal purposes, with Australia, Germany, and several Latin American nations adopting medical cannabis programs.
However, the demand for cannabis products is ever-growing. Globally, more people are seeking products like beverages, edibles, and topicals that contain CBD. This has led to several major cannabis producers developing differentiated products that help them gain a competitive edge in the market. =
There are even several major companies in South America that are focusing on producing cannabis products to benefit business growth and remain competitive within the global space. Since this is the case, unsurprisingly, there has been massive investment in the cannabis industry globally. In 2023 and 2024 alone, there were hundreds of acquisitions and mergers with large businesses, heavenly investing in cannabis startups and established companies. [3]
Cannabis Business Trends In South America: By Country
In South America, cannabis businesses specialize in producing medicinal or recreational (or both) cannabis products and services depending on country regulations and legislation. To better understand the current cannabis business trends and market findings in South America, we’ve looked into trends and market insights in six South American countries that are flourishing in the cannabis industry.
Brazil
In Latin America, Brazil is easily one of the biggest cannabis markets, with its growth and success primarily driven by the country’s medical cannabis sector. Brazil’s medical cannabis market is currently valued at over $100 million, and even more growth is expected in the coming years.
Based on data findings, the country is experiencing these profits because it has experienced significant developments with its medical cannabis extracts, oils, and pharmaceutical products.
However, there is an ongoing debate in the country surrounding the decriminalization of the recreational use of cannabis, which has led to legal uncertainties, particularly surrounding cannabis possession. At the time of writing, it’s still illegal in Brazil to use cannabis recreationally.
Columbia
2023 statistics revealed that Columbia’s cannabis exports market reached an incredible $5 million this year. It is believed that the market could grow to reach $50 million annually by 2025. This is unsurprising, considering Columbia has emerged as a major player in the global cannabis industry in the last decade. Like Brazil, Columbia’s market growth is driven by its medicinal cannabis sector.
Currently, the country has over 1,200 licensed cultivators, and its favorable climate allows it to enjoy multiple harvests annually, which is not the case in other parts of the world. In fact, Columbia’s climate is one of the main reasons international investors have heavily invested in the country’s cannabis business of late.
Unfortunately, capitalization of the recreational cannabis market remains out of reach for businesses in Columbia producing cannabis, with the recent bill to legalize recreational cannabis archived. However, new investments and exports remain steady, so it’s only a matter of time before the country reaches its full potential in the cannabis sector.
Chile
Many find it surprising that Chile has become a key player on the board when it comes to the cannabis industry, especially considering its more favorable outlook on recreational cannabis legalization. According to statistics, the country focuses on medicinal cannabis, with its medical cannabis market estimated to be worth $10 million annually. This is significant, considering the country only legalized medicinal cannabis in 2015.
Since its legalization, the country has approved the cannabis-based drug Sativex for production. At present, recreational cannabis remains out of reach, but the country is actively working on developing a comprehensive regulatory framework for all cannabis uses. So, in the near future, businesses could get the green light to begin developing recreational cannabis products.
Uruguay
The South American country Uruguay might now be famous for its beef, beaches, and soccer, but it is making waves in the cannabis industry and quickly becoming a thought leader in the space. Few people realize that Uruguay was the first country in the world to wholly legalize adult-use cannabis back in 2013.
In Uruguay, businesses can sell cannabis recreationally and medicinally. In addition, the citizens of Uruguay are permitted to purchase cannabis from pharmacies, join cannabis clubs, or grow their own cannabis at home. However, this doesn’t mean that no regulation exists. The country’s government regulates the cannabis market through the esteemed Institute of Regulation and Control of Cannabis (IRCCA). This institute oversees the country’s production, distribution, and pricing. [4]
With the country’s stance on cannabis far more liberal than the rest of the world and South America, it should come as no shock to know Uruguay’s cannabis market is valued at about $50 million annually currently. It might also be of interest to note that Uruguay is working toward regulatory changes that make it easier for tourists to buy cannabis as a measure to combat the black market. With these upcoming regulatory changes, it’s predicted that the country’s cannabis market will continue to grow and thrive, and so will the country’s cannabis business.
Argentina
Argentina might not wholly allow recreational use of cannabis, but it does have medical cannabis programs that allow patients to cultivate cannabis for personal use. The country’s primary focus is on developing its medical cannabis market, and it’s done well, with current projections estimating Argentina’s medical cannabis market will grow to $50 million by 2025.
Businesses in the medical cannabis sector in Argentina are growing from strength to strength, especially those involved in the caregiving sector. There are even governmental initiatives to improve medical cannabis access, which is helping businesses and patients.
Not to mention, the country is experiencing increased public support toward wholly decriminalizing cannabis recreationally, further than the decriminalization of small amounts of cannabis possession that occurred in 2009. [5]
Ecuador
Ecuador is a South American country that is still in the early stages of developing its cannabis market, considering the country only legalized medical cannabis in 2019. Unsurprisingly, with its slow start in the cannabis sector, its market is currently nascent, but there is expected growth with the country’s regulations soon to solidify.
According to sources, the country is expected to quickly gain traction with its cannabis businesses, which are poised and ready to begin contributing to market growth. Once the green light is given to implement the country’s regulatory framework surrounding the cultivation, production, and distribution of medicinal cannabis, the market will benefit as more companies enter the Ecuadorian cannabis market.
The Biggest Cannabis Companies In South America
There are quite a few impressive cannabis companies in South America that are growing year over year. [6]
Recreational and medical cannabis companies like PharmaCielo, Flora Growth, Silverpeak, and Zebra Brands are leading the charge in South America’s steadily growing cannabis industry because of the region’s positively evolving legal and regulatory frameworks and favorable climate.
Many expert opinions state that these two factors are primarily causing the South American cannabis market to gain significantly on the EU and North American markets and fall just behind them.
The Wrap-Up On Cannabis Business In South America
South America’s cannabis business markets and trends paint a vivid picture. The region is ready to become a major player and contend with industry giants in the EU and North America. Many businesses in South America are capitalizing on the country’s natural and legal favorable conditions to position themselves as leaders in the space.
As the countries within South America continue to refine and legalize cannabis for different uses, the entire region’s market is expected to grow exponentially in the coming year, which will spur international investment and entrepreneurship within country borders.
As trends and markets change, we will continue to keep you informed about the latest happenings in the cannabis business in South America.
References:
1. https://www.statista.com/statistics/1015644/latin-america-cannabis-market-value/
2.https://www.mordorintelligence.com/industry-reports/cannabis-market
3.https://www.cannabisbusinesstimes.com/tag/mergers-acquisitions/
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