Cannabis: the potential of a growing industry

2 min. reading
Cannabis / 11 September, 2021

Karla García Gil Journalist

In recent years, cannabis has ceased to be a simple drug and has become a robust market with more than 10,000 different uses, including animal feed, biocompounds, biofuels (bioethanol and biodiesel), beer, paper pulp, compost, cosmetics, food supplements, as well as medicinal and recreational uses.

Thus, legislation for the inclusion of the cannabis industry has been on an upward trend for several years. In Canada, Mexico and Uruguay, practically all uses of the plant have been legalized, including recreational use.

According to figures from New Frontier Data’s Global Cannabis Report: 2020 Industry Outlook, the global cannabis market, both regulated and illicit, is estimated at US$344 billion. The market is mainly comprised of Asia, with 132.9 billion; North America, with 85.6 billion; Europe, with 68.5 billion; Africa, with 37.3 billion; and Latin America, with 9.8 billion.

Meanwhile, the legal cannabis market alone is estimated to produce close to 150 billion dollars a year worldwide, and experts anticipate a five-fold growth by 2023. According to data from Muisca Capital Group, the market has a growth trend of between $45 billion and $67 billion, while it is projected to exceed $100 billion by 2024.

The countries generating the most revenue from medical cannabis are: United States ($10 billion), Canada ($5.5 billion), Germany ($87.2 million), Italy ($47.8 million), and Uruguay ($45.5 million).

In this sense, unlike Canada, which has almost no months for planting, Mexico is positioned as a key player in cannabis production, since it is possible to have product all year round without the high costs of heating or labor, which puts it at an advantage over other producing countries.

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New experiences

Compared to other consumer products, the trend in cannabis is towards the generation of new experiences, as in the case of the wine, food and alcohol industries. In this sense, when alcohol went from prohibition to legality, it made the leap from the discovery of a legally emerging product to the experience, and the same is expected to happen with the cannabis industry.

In the coming years there will undoubtedly be companies that manage to capture this booming market and become excellent generators of income and jobs, therefore, investors from around the world have shown increasing interest in investing in the industry in anticipation of the benefits it can bring them.

 

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