The Recreational Cannabis Business in Mexico: The new investment opportunity.
In the midst of the strongest economic crisis of the last 200 years, the cannabis industry is the key when choosing where to invest.
This industry has grown worldwide, estimating that by 2025 its legal business will have a growth of 77% with sales of over 160.000 million dollars.
The advance of legalization in the use of marijuana and the growth of Latin America according to world powers, becomes Mexico in an excellent opportunity to direct investment there.
The Mexican Senate passed legislation enabling the recreational use of marijuana, and now the House of Representatives has to discuss it until February 2021. Therefore, it is optimal to analyze the panorama to anticipate the new economic phase.
We are talking about a country where it is estimated that cannabis is one of the most consumed drugs, in a population of 128 million people. There is the greatest potential of marijuana consumers; 60% of the population are between 18 and 60 years old, the age range in which consumption is usually higher.
The great demand that already exists, will increase after the legalization. Times of economic growth never before thought are approaching.
Literally, Mexico could become an extremely important industry that could generate more than 35 billion dollars in 2021.
This business is bigger than all the US states combined where recreational consume is legal, -which the amount is 109.4 millions - and it is 75% larger than Canada, California and Uruguay combined - which the amount is around 79 millions -.
It could even compete with the cannabis industry in the USA and Canada, as a result of the low production costs that the Latin America country offers.
Let's consider that the cannabis industry in the USA has been growing at a year-on-year rate of 25%. In 2019, the recreational cannabis sales were estimated to exceed $8 billion, and projections indicate that total sales will range between $18 and $22 billion by 2023.
In the case of Canada, total sales were set at $7.17 billion in 2019, although this figure includes unregulated sales.
Other benefit of Mexico is that trade relations with the North American country were strengthened, reaching its peak in 2019, to the point that in September of that year it has become the most important commercial partner.
In simple words, Mexico is the preferred business partner of the world's leading economy, surpassing the prestigious countries of China and Canada.
Also, this country is one of the most open economies in the world, with important commercial relations such as its relationship with the European Union. Mexico has signed the Free Trade Agreement in 2000, which has allowed a significant growth in bilateral trade.
All these advantages indicate that the future of the economy growth lies in the Mexican recreational cannabis trading, being the right time to prepare your best resources.