Global demand for cannabis products is soaring, and to no one’s surprise, Latin America is a hotbed of activity in the growth of the market. Long a center of the illegal marijuana trade, Latin America saw legal cannabis sales reach over $125 million in 2018. In the next ten years, it is predicted that this will become a multi-billion dollar a year industry and KindXtractor is well on its way to developing relationships with Latin America.
Latin America has an advantage over other regions that positions it to undercut prices on virtually every other global competitor. North American and European markets are liberalizing their policies on cannabis products such as CBD and THC-free isolates but do not possess the agricultural capacity to meet the demand due to decades of prohibition and crackdowns on farmers that sought to grow hemp even for industrial purposes. Many countries in central and South America have a long agricultural tradition of CBD hemp biomass production, but also are home to over 500 million recreation customers and 4.3 million patients who are using CBD medicinal products to treat their medical conditions. This convergence of supply and demand is creating a burning hot market that is rife with investment opportunities.
The recent LATAM CBD Hemp Report took a close look at several Latin American nations as well as those in the Carribean islands and found that, despite complex legal environments in some countries, the low costs associated with investment in the region’s vast agricultural marijuana capacity are attracting significant foreign investment that may provide stimulus to many countries that have grappled with systemic poverty for decades. However, there is a legitimate concern that this newly emerging legal cannabis market will fall prey to the same issues that have plagued Latin American agribusiness sectors in the past. Columbia and Uruguay are leaders in legalizing CBD Hemp production and kindXtractor plans on future relationships with each country.