As reported on the ICBC Blog…
Central and South America have long served as top sources for agricultural crops, and in recent years, the two regions have also emerged as top sources for legal medical cannabis products. According to leading international cannabis economist Beau Whitney, the region’s growing cannabis market is worth a considerable amount of money.
“Central and South America together are an $8 billion total market; however, its low-cost manufacturing and drive towards EU GMP and GAP certifications is making the region an attractive source of supply for the EU.” Whitney stated in a recent newsletter.
Whitney’s analysis was originally provided as part of his presentation at the inaugural Andean Hemp and Cannabis Trade Summit in October where he presented on the Central and South American hemp and cannabis markets.
In addition to the overall market value analysis, Whitney Economics also provided the following market information as part of his presentation:
- Five countries in Central and South America make up 89% of the regional demand
- Brazil is home to the largest domestic market ($2.5 billion)
- Total Central and South American market demand requires 6.3 million pounds of cultivated output
- Peru is an estimated $0.8 – $2.2 billion domestic market
- Peru’s hemp industry has strong opportunities in fibers, grains, and isolated cannabinoids
South America will forever be home to the first country on earth to adopt a national adult-use cannabis legalization measure. Lawmakers in Uruguay approved a national recreational cannabis legalization measure in 2013, with legal sales launching in 2017. Legal adult-use sales are limited to residents of Uruguay.
Due to low labor costs and an ideal climate for outdoor cannabis cultivation, cannabis can be produced in Central and South America at a fraction of what it costs to produce in larger emerging cannabis markets, particularly in Europe. As such, legal cannabis from Central and South America will presumably be dominant in the global export market going forward.
Cannabis Industry In Central And South America Is Worth An Estimated $8 Billion
