The Cannabis Market
The global legal marijuana market size is expected to reach USD 105 billion by the end of 2026.
It is anticipated to expand at a CAGR of 15.3% during 2021-2026. Increasing legalization and use of marijuana in medical as well as recreational applications are expected to promote said growth.
The growing adoption of cannabis as a pharmaceutical product for treating severe medical conditions, such as cancer, Parkinson’s disease, Alzheimer’s disease, arthritis, and other neurological conditions is anticipated to drive demand for medical marijuana in the forthcoming years. The increasing need for pain management therapies and the growing disease burden of chronic pain among elders is also expected to boost demand.
Legalization of medicinal marijuana and decriminalization in some countries has led to a significant decrease in the black market, as people are resorting to legally purchasing cannabis for medicinal as well as recreational use. Moreover, government earnings through taxation are further viewed as an opportunity for countries to earn revenues. The presence of a large customer pool and the legalization of medical marijuana in the U.S. and Canada is expected to propel the product demand in North America.
Global Cannabis Legalisation
The LATAM Market
The trajectory of far-reaching legalisation could see Latin America become a leader in the global market because of the edge it has over other legal, developed countries. The key commercial advantages of Latin America, in terms of cannabis cultivation, production, processing and distribution, are the low cost of labour and favourable climates. Power consumption related to indoor cultivation is a huge disadvantage to countries looking to compete with Latin American countries who, on average, have a robust outdoor growing season. Additionally, the low cost of labour and less strict business regulations allow lower expenses.
Currently, Colombia owns the only exportation license in the region and Uruguay is the only country to legalise and regulate recreational cannabis use.
Colombia offers a significant cost advantage to peers whilst also capitalising on experienced Human Capital with significant,
scalable Cultivation Infrastructure.
A TRANSFORMATIONAL STORY
- LATAM's most advanced cannabis regulatory framework
- Patient-friendly laws; high approval for medical cannabis
- Population of 49 million people (55% under the age of 30)
- 10 major cities with more than 500,000 inhabitants
- 2x landmass of California, 3x landmass of Germany
- Dynamic research community and cannabis talent pool
- Gateway between The Americas; access to two oceans
IDEAL GROWING ENVIRONMENT
- Equatorial climate with 12/12/365 daily light cycle
- Top world ranks for water availability & precipitation
- Elevations ranging from 0 to 13,125 ft above sea level
- #1 in world: flora species/square mile, #2 in biodiversity
- 21 million Ha of land suitable for agricultural expansion
- Hundreds of strains in their natural environment