Latin America Cannabidiol Market

Latin America Cannabidiol Market Size (2024 to 2032)

The size of the Latin America cannabidiol market was valued at USD 1.34 billion in 2023. This market is expected to grow at a CAGR of 24.34% from 2024 to 2032 and be worth USD 9.52 billion by 2032 from USD 1.67 billion in 2024. 

MARKET SCENARIO

The awareness among people and healthcare providers regarding the health benefits of cannabidiol has been growing rapidly over the last several years, one of the major factors propelling the Latin American cannabidiol market growth. Now, there is substantial evidence to prove that cannabidiol can help reduce chronic pain, anxiety, and stress, improve sleep, and other benefits. Due to this, the demand for CBD products has been growing over the last few years, boosting regional market growth.

The legalization of medical cannabis in the Latin American region is another major factor fuelling the growth rate of the Latin American cannabidiol market. Medical cannabis has been legalized in many Latin American countries, creating a favorable environment for the trade activities of CBD products. Due to the legalization, people have come to know the benefits of CBD products, and the investments in developing innovative CBD products have grown.

The rising e-commerce industry for cannabidiol products in the Latin American region is predicted to drive regional market growth. Increasing demand for natural and organic products in Latin America is anticipated to favor the growth rate of the Latin American cannabidiol market. Consumers are keen on the ingredients used to manufacture the products before consumption, and their preference towards natural and organic products has grown significantly in the recent past. The understanding levels among consumers in Latin America that cannabidiol products are made using natural ingredients and not chemically processed, accelerating the demand levels for these products and resulting in market growth.

Furthermore, factors increasing investments in the Latin American cannabis industry and favorable regulations from the governments of Latin American countries are anticipated to promote the growth rate of the Latin American cannabidiol market.

However, limited awareness among people regarding the benefits of CBD products in some countries of Latin America is hampering the overall growth of the Latin American cannabidiol market. In addition, factors such as lack of standardization for the cannabidiol market in Latin America,                lack of funding for the small and medium-sized manufacturers of CBD products, cultural attitudes and stigmas around the consumption of marijuana and cannabis-related products in some countries of Latin America are anticipated to hinder the market growth in Latin America.

SEGMENTAL ANALYSIS

Latin America Cannabidiol Market Analysis By Type

• Hemp

• Marijuana

Latin America Cannabidiol Market Analysis By Distribution Channel

• B2B
• B2C
  • Hospital Pharmacies
  • Online
  • Retail Stores

Latin America Cannabidiol Market Analysis By End Users

• Medical
  • Chronic Pain
  • Mental Disorders
  • Cancer
  • Others
• Personal Use
• Pharmaceuticals
• Wellness
  • Food & Beverages
  • Personal Care & Cosmetics
  • Nutraceuticals
  • Others

GEOGRAPHICAL ANALYSIS

• Mexico
• Brazil
• Argentina
• Chile
• Rest of Latin America

The Latin American market captured a considerable share of the worldwide market in 2023 and is expected to grow at a notable CAGR during the forecast period. However, while beauty, skincare, and other personal care products are likely to gain traction in Latin America, particularly in Colombia and Mexico, where a legal marketing framework already exists, adoption will continue to be limited to relatively small business populations with the highest incomes in the region.

The Brazilian cannabidiol market is expected to lead the Latin American market during the forecast period. The Mexican Cannabidiol Market is estimated to grow fastest in the Latin American region. It creates a great opportunity for producers of products, from medicinal products to recreational products. With a population of 128 million, Mexico is the largest adult market in the world.

The Argentina Cannabidiol Market is forecasted to perform well during the forecast period. Argentina Allows CBD when allowed by a doctor for medical purposes. The process requires scientific evidence that CBD can help treat the condition. The user also needs a doctor to prescribe it.

KEY MARKET PARTICIPANTS

Pharmahemp d.o.o, ENDOCA, NuLeaf Naturals LLC, Folium Biosciences, Elixinol, Cannoid LLC, Medical Marijuana Inc., and Isodiol International Inc. are some of the companies operating in the Latin American cannabidiol market.