Cannabis - South America

South America

Revenue in the Cannabis market in South America is forecasted to reach US$1,171.00m in 2024.
The revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 2.17%, leading to a market volume of US$1,304.00m by 2029.
When compared globally, the United States is expected to generate the highest revenue (US$42.98bn in 2024).
In terms of per person revenues relative to the total population, US$65.71 is generated in 2024.
In South America, the Cannabis market is rapidly expanding, with Uruguay leading in progressive regulations and Colombia emerging as a key player in cultivation.

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

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Analyst Opinion

The Cannabis market in South America has been experiencing significant growth and development in recent years.

Customer preferences: Consumers in South America are increasingly turning to cannabis products for both medicinal and recreational purposes. There is a growing acceptance and demand for cannabis-based products, driving the market expansion.

Trends in the market: In countries like Uruguay and Colombia, where cannabis has been legalized for recreational use, there is a surge in the number of companies entering the market to capitalize on the growing demand. These countries are becoming key players in the cultivation and export of cannabis products to other regions. Additionally, there is a trend towards the diversification of cannabis products, with an emphasis on innovation and quality to meet consumer preferences.

Local special circumstances: One of the unique aspects of the South American cannabis market is the presence of a large informal market that operates alongside the legal market. This informal market poses challenges in terms of regulation and oversight, but also presents opportunities for market expansion and reaching a wider consumer base.

Underlying macroeconomic factors: The economic landscape in South America plays a significant role in the development of the cannabis market. Countries in the region are looking to cannabis cultivation and exports as a way to boost economic growth and create new opportunities for investment. Additionally, shifting attitudes towards cannabis and changing regulatory frameworks are creating a more conducive environment for market growth.

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.