Over the past 24 months, the Latin American cannabis industry has emerged from the shadows to command the attention of the international cannabis community as over ten major markets have legalised medical cannabis. Legal cannabis sales are expected to be worth $125 million in 2018 but that number is expected to rise to $12.7 billion by 2028.

The figure comes from the recently published The LATAM Cannabis Report™, by market intelligence and strategic consultancy firm Prohibition Partners, who have analysed pricing, consumption and patient datasets in the region.

According to the report, the majority of the market value will come from the medical cannabis sector, forecasted to be worth $8.5 billion in ten years time. In addition, the report predicts that the Latin American market will undercut global cannabis prices, currently retailing at $2 per gram on Uruguay’s regulated marketplace. Offering a low-cost alternative to North American and European markets, licensed producers will look to cultivate in Latin America, creating an international export market.

The report explains the complex regulatory environment and provides market forecasts for 11 major markets in Latin America.

Key findings from the report:

  • Medical cannabis will account for more than two thirds of the legal cannabis industry in Latin America, worth an estimated $8.5 billion.
  • The cannabis sector is set to grow by over 300% per year over the coming decade from an estimated $125 million in 2018, to $12.7 billion by 2028.
  • Over 40 licensed producers are active in the region. Colombia has issued the most cultivation licenses in the region, allocating 142 licenses to date.
  • Facility and construction costs are 80% lower than North America and Europe.
  • Chile and Mexico will be engines of growth in the medical sector while Uruguay and Colombia will encourage regionwide recreational cannabis legislation.
  • Patient numbers will increase significantly to over 4.6 million by 2028.