September 17, 2019 - Chicago, Illinois - In their recent report, Brightfield Group, a leading consumer and market intelligence firm for the legal CBD and cannabis industries, provides a level of realism to the much-discussed Latin America CBD and Cannabis markets. While many Latin American governments are finally taking steps to create legal markets for cannabis and CBD products, business opportunities for domestic retail sales are still limited. Overall CBD and cannabis market growth through 2023 is estimated to grow to $563 million.
“The cannabis market in Latin America looks absolutely nothing like the market in North America - and even in Europe - and businesses looking to develop similar operations are going to have a rude awakening. There are opportunities, particularly over the longer term, though investors and entrepreneurs will need to very carefully evaluate the nuances on the ground in order to be successful,” Brightfield Managing Director, Bethany Gomez, explains.
Key highlights from the report:
- Overall, CBD market growth in Latin America is significantly more promising than Cannabis: $448m through 2023 compared to $115m (recreational and medical).
- Because CBD is not a scheduled substance in the United States, many individuals have found that U.S. CBD brands are easier to import than Canadian CBD products, which are still considered scheduled products in Canada, thus adding another layer of difficulty to getting imports approved and the shipping process to Latin America completed in a timely manner.
- The decriminalization of personal cannabis consumption and some level of home grow permissibility are attractive alternative options in Latin America, as a regulated market similar to Canada or U.S. states is far too costly to administer and the price of cannabis is too high to be able to compete with the illicit market prices in local markets.
- The legalization of cannabis cultivation and export in Uruguay, Colombia, Argentina, and Peru may represent significant market opportunities for domestic and international companies, thanks to lower farming costs and favorable weather for crops.
About Brightfield: Brightfield Group is the leading consumer insights and market intelligence firm for the CBD and Cannabis industries. They work with well-known brands, manufacturers, and agencies across the world, providing strategic data, insights, and guidance for these dynamic markets. Leveraging a unique multi-source approach, Brightfield Group delivers a holistic, forward-looking view into the everchanging brand, market, and consumer landscape.