Recreational Cannabis - LATAM | Statista Market Forecast

Revenue in the Recreational Cannabis market market in LATAM is forecasted to hit US$2.31bn in 2024.
The revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 6.19%, leading to a market volume of US$3.12bn by 2029.
When compared globally, the United States is set to generate the highest revenue (US$24.96bn in 2024).
Concerning total population figures, per person revenues of US$644.50 are expected in 2024.
In LATAM, the Recreational Cannabis market is burgeoning, with Mexico leading the way in legalization efforts and market expansion.

Definition:
The Recreational Cannabis market encompasses products derived from the cannabis plant that are used for leisure or personal enjoyment. These products can include dried flowers, oils, edibles, tinctures, and topicals. The availability of these products is subject to the regulations in each country or state, and they can be obtained from dispensaries, retail stores, or online platforms. Consumption methods vary, and can include smoking, vaporizing, eating, or applying topically.

Structure:
The Recreational Cannabis market is a subset of the broader cannabis market, which also includes medical and pharmaceutical cannabis as well as CBD products. The Recreational Cannabis market specifically pertains to products used for personal enjoyment, as opposed to the medical and pharmaceutical markets which focus on products used for treating medical conditions. The market includes various forms of cannabis such as flowers, concentrates, edibles, and topicals.

Additional information:
The 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).

Cannabis containing THC used for recreational purposes
Extracts
Dried cannabis
Edibles
Beverages

Medical cannabis
Pharmaceutical cannabis
CBD Products

The Recreational Cannabis market in LATAM has been experiencing significant growth and development in recent years.

Customer preferences: Customers in LATAM are increasingly showing a preference for high-quality recreational cannabis products that offer a wide range of options, from traditional dried flower to edibles and concentrates. They are also gravitating towards brands that prioritize sustainability and social responsibility, reflecting a global trend towards conscious consumerism in the cannabis industry.

Trends in the market: In countries like Uruguay, the first in the world to fully legalize recreational cannabis, the market is characterized by a strong emphasis on government regulation and control. This has paved the way for a flourishing industry with a focus on quality and safety standards. In contrast, in countries like Mexico and Colombia, where legalization is more recent, the market is witnessing a surge in investments and partnerships as companies rush to establish a foothold in anticipation of exponential growth.

Local special circumstances: Each country in LATAM has its own unique set of regulations and cultural attitudes towards cannabis consumption. For instance, in Brazil, despite recreational cannabis remaining illegal, there is a growing acceptance of medicinal cannabis, which could potentially pave the way for future legalization. On the other hand, in Argentina, a country known for its progressive stance on social issues, there is a burgeoning market for cannabis products driven by changing attitudes and increasing awareness.

Underlying macroeconomic factors: The economic landscape in LATAM plays a crucial role in shaping the recreational cannabis market. Countries facing economic challenges, such as Argentina and Venezuela, see the cannabis industry as a potential source of revenue and job creation. In more stable economies like Chile and Brazil, the focus is on leveraging the market to boost tourism and attract foreign investment. Additionally, the impact of the COVID-19 pandemic has accelerated the shift towards legalizing cannabis as governments seek new sources of revenue to aid in economic recovery.

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.

This report presents a comprehensive analysis and additional information on the Health market, in a PDF format.

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.