Recreational Cannabis - Mexico

Mexico

Revenue in the Recreational Cannabis market market in Mexico is forecasted to reach US$2.25bn by 2024.
The revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 6.27%, leading to a market volume of US$3.05bn by 2029.
When compared globally, the United States is expected to generate the highest revenue (US$24.96bn in 2024).
In terms of per person revenues, US$0.65k are generated in 2024 concerning the total population.
Mexico's emerging recreational cannabis market is attracting international investment, positioning the country as a key player in the global cannabis industry.

Key regions: Spain, South Africa, Europe, Netherlands, Australia

Market

Region

Region comparison

Currency

Analyst Opinion

The Recreational Cannabis market in Mexico has been experiencing significant growth in recent years, driven by changing consumer preferences, evolving regulations, and unique local circumstances.

Customer preferences: Consumers in Mexico are increasingly turning to recreational cannabis products for various reasons, including relaxation, socialization, and wellness benefits. The growing acceptance of cannabis for recreational use has led to a surge in demand for a wide range of products, from edibles to topicals, catering to diverse consumer preferences.

Trends in the market: One notable trend in the Mexican market is the rise of boutique cannabis brands that focus on quality, sustainability, and unique product offerings. These brands are resonating with consumers who value transparency, authenticity, and ethical business practices. Additionally, the market is witnessing a shift towards premium products, as consumers become more discerning and willing to pay a premium for high-quality cannabis experiences.

Local special circumstances: Mexico's proximity to the United States, where cannabis legalization is gaining momentum, has had a significant impact on the Mexican market. The potential for cross-border trade and collaboration presents both opportunities and challenges for industry players in Mexico. Moreover, the country's rich cultural heritage and traditional use of cannabis for medicinal and spiritual purposes contribute to a unique market landscape that blends modern trends with ancient practices.

Underlying macroeconomic factors: The Mexican economy plays a crucial role in shaping the dynamics of the recreational cannabis market. Factors such as disposable income levels, employment rates, and overall consumer confidence influence the purchasing power and consumption patterns of cannabis users. Additionally, regulatory developments, political stability, and international trade agreements can impact market growth and investment opportunities in the long run.

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.