Cannabis - Mexico

Mexico

Mexico is expected to witness a significant growth in the Cannabis market, with revenue projected to reach US$2,728.00m by 2024.
The market is expected to show an annual growth rate (CAGR 2024-2029) of 5.99%, leading to a market volume of US$3,649.00m by 2029.
When compared globally, the United States is anticipated to generate the highest revenue of US$42.98bn in 2024.
In terms of per person revenues, in Mexico is estimated to generate US$0.24k in 2024 based on total population figures.
Mexico's cannabis market is flourishing with the recent legalization, attracting significant investments and driving economic growth in the country.

Key regions: United States, Canada, Netherlands, Germany, Thailand

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Analyst Opinion

Mexico has been experiencing a notable shift in its Cannabis market, with evolving customer preferences and local special circumstances driving the trends in the industry.

Customer preferences: Customers in Mexico are increasingly gravitating towards Cannabis products for both medicinal and recreational purposes. The growing awareness about the potential health benefits of Cannabis has led to a surge in demand for CBD-based products. Additionally, there is a rising interest in alternative forms of consumption such as edibles and concentrates, reflecting a diversification in consumer preferences.

Trends in the market: One of the prominent trends in the Mexican Cannabis market is the gradual legalization and regulation of Cannabis for recreational use. This shift has opened up new opportunities for businesses to enter the market and cater to a broader customer base. Furthermore, the emergence of online platforms for Cannabis sales is reshaping the retail landscape, providing convenience and accessibility to consumers.

Local special circumstances: Mexico's unique geographical position and climate make it suitable for Cannabis cultivation, leading to a burgeoning domestic production industry. The country's rich history of Cannabis consumption also plays a significant role in shaping consumer attitudes and preferences. Moreover, the ongoing efforts to decriminalize Cannabis possession for personal use indicate a changing regulatory environment that is conducive to market growth.

Underlying macroeconomic factors: Economic factors such as job creation and tax revenue generation are driving the push towards Cannabis legalization in Mexico. The potential for a new revenue stream through Cannabis sales presents an attractive opportunity for the government to boost economic growth and address budgetary concerns. Additionally, the shift towards Cannabis legalization aligns with global trends, as more countries recognize the economic potential of the industry.

Methodology

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.