Mexico: With cannabis legalised, what happens next?
With a market such as that of legal cannabis, development is rapid, and many opportunities relating to the sector often appear all at once and have to be taken advantage of immediately. In 2020, the legal market was valued at US$24.6 billion, and with numbers like this already a reality, the relaxation and adapting of laws in more countries across the globe will simply serve as additional help in raising the value sky high. Mexico is one country in Latin America that is immersing itself in the market, and with Uruguay already having legislation in place surrounding legalised cannabis, the region as a whole appears to be positioning itself at the forefront of activity.
The Mexican cannabis industry
The official legalisation of the production of medicinal, industrial and recreational cannabis occurred on the 10th March 2021. Now, taking into account the current global situation, in which world economies are struggling and many markets have been hit hard by the inability to operate normally, this news is even bigger than it otherwise would have been. It is said that by 2025, the Mexican legal cannabis industry will be worth between US$5 and 6 billion, roughly 25% of the entire current market value.
Where can you benefit?
While the majority of us are suffering from changing daily routines and new working environments, it is clear that advancement is still taking place, and opportunities for investment are continuing to appear with the promise of long-term gains. With Mexico poised to become the largest legal cannabis market following the new legislation, it seems inevitable that the largest investment opportunities will arise from within the nation.
For citizens of Mexico themselves, the legal possession limit for cannabis is raised from 5 grams to 28, meaning recreational users will not have as low a limit as before. However, a more significant area for development is the license that can be applied for to permit small- and large-scale growers with the overriding ambition to sell the plant for the purpose of medicinal or industrial use, such as to manufacture Hempcrete, a building material using hemp as a key ingredient. According to Forbes, this radical legalisation of these various uses of cannabis could lead to US$22 billion being made in about 4 years, demonstrating that now is the time to get involved in the industry in Mexico.
If you are interested in expanding your business portfolio to include Mexico’s legal cannabis industry, contact us today. We are an international team experienced in helping people from all over the world to grow their businesses and find cross-border success, and we would love to help you become the next.