Over the past two years, the Latin American cannabis industry has “emerged from the shadows” to command the attention of international firms and investors. Legal cannabis sales within the region are on track to reach $125 million in 2018; that figure is expected to rise to $12.7 billion by 2028.
These are the conclusions of The LATAM Cannabis Report, newly released by UK-based international cannabis industry consultants Prohibition Partners—a rather ironic name, since it’s dedicated to tracking and spurring the growth of the sector as it burgeons in the nascent post-prohibition world.
Prohibition Partners arrived at the figures through an analysis of pricing, consumption and patient datasets in the region. The greatest share of the market value will come from the medical sector, anticipated to be worth $8.5 billion a decade from now. Since Uruguay passed its ground-breaking general legalization law in December 2013, no less than 10 countries in the region have legalized medical cannabis to one degree or another.
Following a pattern set in other industries, the report predicts that the Latin American market will undercut global cannabis prices. “Offering a low-cost alternative to North American and European markets, licensed producers will look to cultivate in Latin America, creating an