CBD Products - LATAM | Statista Market Forecast

In LATAM, revenue in the CBD Products market is forecasted to reach US$587.30m by 2024.
The market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 1.28%, leading to a market volume of US$625.90m by 2029.
When compared globally, the United States is anticipated to generate the highest revenue in 2024, amounting to US$2.58bn.
In terms of per capita figures, revenue of US$22.74 is generated per person in 2024.
In LATAM, the CBD Products market is rapidly expanding, driven by shifting regulations and growing consumer awareness of the benefits of cannabis-derived products.

Definition:
The CBD Products market encompasses products derived from the cannabis plant that contain Cannabidiol (CBD), a non-psychoactive compound. These products may include oils, tinctures, edibles, topicals, and capsules. They are typically sold in health food stores, pharmacies, online platforms, and specialty CBD stores. These products are consumed for wellness purposes, and depending on the product, can be ingested, applied topically, or inhaled.

Structure:
The CBD Products market includes products used for general wellness, relaxation, and stress relief. The CBD Products market includes various forms of CBD such as oils, edibles, topicals, and capsules.

Additional information:
Market values represent the revenues generated by retail prices paid to vendors, either directly or through distribution channels (excluding VAT). Reported market revenues include spending by consumers (B2C).

Cannabidiol (CBD) used for recreational purposes

CBD based medicine holding marketing authorisation
CBD based medicine not holding marketing authorisation

The CBD Products market in LATAM has been experiencing significant growth in recent years, driven by changing consumer preferences, evolving regulations, and increasing awareness of the potential health benefits of CBD products.

Customer preferences: Consumers in LATAM are increasingly turning to CBD products as a natural alternative for health and wellness. The preference for organic and sustainable products is driving demand for CBD products in the region. Additionally, there is a growing interest in CBD-infused beauty and skincare products among consumers in LATAM.

Trends in the market: In Brazil, the largest market in LATAM, there is a rising trend of incorporating CBD into food and beverages. This trend is driven by the increasing popularity of functional foods and drinks that offer health benefits. In Mexico, the CBD market is seeing a surge in demand for CBD oil and tinctures, as more consumers are looking for natural remedies for various health conditions. Colombia is emerging as a key player in the CBD market, with a focus on cultivating high-quality hemp for CBD extraction.

Local special circumstances: In Argentina, the CBD market is influenced by the country's economic challenges, leading to a growing interest in CBD products as a potential source of income for individuals. The regulatory environment in Chile is relatively more favorable towards CBD products, attracting investments in the industry. In Peru, traditional plant medicine practices are contributing to the acceptance of CBD products among consumers.

Underlying macroeconomic factors: The economic stability and purchasing power of consumers in each country play a significant role in shaping the CBD market in LATAM. As disposable incomes rise, consumers are more willing to spend on premium CBD products. Additionally, government regulations and policies regarding the cultivation, production, and sale of CBD products impact the growth and development of the market in each country.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on companies' revenues, funding values and global consumer survey data. Revenues include retail, sales and taxes.

Modeling approach / Market size:

Market sizes are determined by a Top-Down approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use financial reports, third-party data. Next, we use relevant key market indicators and data from country-specific associations such as tobacco spending per capita, medical product spending per capita, consumer spending and consumer spending for recreation purposes, population. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, S-Curve function, ARIMA time series model and exponential curve function.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. GCS data is reweighted for representativeness.

Cannabis or marijuana, the psychoactive drug from the cannabis plant is growing in popularity around the globe, both for recreational and medicinal uses. While there are many countries that have legalized cannabis in some capacity for medical purposes, only a handful have done so for recreational use. Even though cannabis is not federally legal in the United States, the combined legal states represent the largest market in the world. After the U.S., Canada, which legalized cannabis nation-wide in 2018 represents the next largest market. In 2021, a new coalition government was formed in Germany that indicated that the legalization of cannabis was on their agenda. Germany would be the largest legal adult-use market in Europe and would act as a test case for other countries on the continent considering the merits of legalization.