According to a report from MarketsandMarkets, the cannabis market is currently valued at 27.7 billion but will increase to $82.3 billion in 2027.
The Medical Segment
The medical segment also significantly contributes to the total cannabis market. Cannabis is used in treating various medical situations like anxiety, gastrointestinal disorders, seizures and epilepsy. An increased network of cannabis dispensaries will help increase the reach of the cannabis products to consumers, thus projecting a bright future for the market.
Despite increased knowledge of its medical benefits, existing manufacturing inefficiencies and manufacturers’ poor-quality control are hindering output. Many products fail to meet regulatory and content requirements. However, because of enhanced manufacturing procedures and quality standards, the pharmaceutical industry is now poised to supply more consistent products.
The CBD-Dominant Segment
High demand and progressive policy reforms will ensure the cannabis industry’s growth. As more people around the world experience burnout because of work and other stresses, consumers are more inclined to focus on self-care and mental wellness, and CBD fits perfectly into this change. The CBD market has risen because of the progressive growth in the availability of CBD products. Furthermore, the industry is predicted to grow positively because of CBDs growing presence in edibles, skincare and increased online distribution channels.
Medical Cannabis in South America
The market in the region is driven by the legalization of medical cannabis. The legalization of cannabis originated in Uruguay and Colombia, which was later joined by Argentina, Brazil, Chile and other South American countries. Although personal cultivation of recreational cannabis for personal consumption is legal in many countries in the region, commercial sale is limited only to Uruguay. Several countries in South America have decriminalized possession of small amounts for personal use such as Chile, Colombia, Costa, Ecuador and Peru. The South American cannabis market is also growing tremendously as many local companies are receiving EU-Good Manufacturing (GMP) certification, and countries are approving favorable legislation. This market also benefits from the favorable climate, low-cost labor and construction costs, as they are very low as compared to North America.