Latin America’s medical cannabis industry dreams big
RIO DE JANEIRO, BRAZIL – Considering that more comprehensive regulations are still lacking in the countries with the greatest potential for turnover, the estimates fail to aggregate the full potential that the sector’s chain would have if all legal frameworks were working as the players would like, especially including permission for recreational use.
Forecasts for three years from now, based on revenues of US$168 million in 2020, according to the startup accelerator The Green Hub, point to Brazil and Argentina as drivers in the South American sub-continent, from producers to investment funds. Respectively, each contributes 24% and 11% of the total from Patagonia to Mexico.
And until 2024, the potential Brazilian market, in figures, would be worth R$4.7 billion (US$900 million).
And while the regulatory framework extending the scope of cannabis use – Bill 399/2015 was passed in a Special Committee on June 8 – and in Argentina the government recently submitted a more comprehensive regulatory bill – players from both countries are discussing the future of the cannabis industry and the production of cannabis and hemp.
In Brazil, for instance, the plant’s local, legalized production is one of the obstacles in the legislation, while Argentina is at the forefront breaking barriers, such as legalizing abortion.
On Wednesday, July 7, The Green Hub is promoting the Cannabis Thinking Talks with the president of the Argentine Cannabis Chamber (Argenvann), Pablo Fazio.
There are now several other initiatives between Argentine and Brazilian companies, according to the consultancy and startup accelerator.
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