Trends in the worldwide cannabis industry

The use of cannabis and its derivatives is gradually being withdrawn from the criminal sphere in several countries. As such, the worldwide cannabis industry continues to grow.

The main suppliers in the worldwide cannabis industry are South and Central American countries including Colombia, Mexico, Peru, Paraguay, and Uruguay.

You can find more information about the cannabis industry and other important news in the cannabis sector in the Hemp.im app. This app collects the latest marijuana news among cannabis sectors that investors operate in.

Hemp.im provides the latest news about the CBD and hemp sector, which is predicted to be worth more than $14.67 billion by 2026.

The best choice for a profitable investment in the worldwide cannabis industry

The idea that an investment in cannabis production might become reality seemed impossible 10 to 20 years ago. Back then, that was part of the illegal business. Current trends of legalization have made this investment not only very profitable but also legal.

If we take into account the fact that the region has extremely favorable conditions for agriculture, it becomes clear why the investments are so profitable.

Canopy Growth opened a branch in Latin America in July 2018 and began to actively develop partnerships with suppliers and end producers. But another promising hemp oil producer from the U.S. that is already profitable is Veritas Farms Inc. (OTC: VFRMD).

From the U.S. to the global cannabis market

With corporate headquarters in Fort Lauderdale, Florida, Veritas Farms was established in 2015. The company’s 140-acre industrial hemp farm and manufacturing facility are based in Pueblo, Colorado, where Veritas produces nine product categories with over 60 SKUs.

With successful advertising campaigns, their products are available at 4,500 retailers across the U.S. including 1,350 Kroger locations.

Veritas Farms sells its products online too, not only within the country, but in other regions, such as the Carribean, Asia, and the lucrative European markets.

Representatives of both companies admit that the Latin and South American market is strategic for them, which is quite understandable.

The cannabis industry in Colombia

Colombian authorities have tried to distance themselves as far as possible from everything that was somehow connected to cannabis. Taking into account the global trends, authorities decided to legalize cannabis in 2017.

The new legal norms regulate commercial activities related to the cultivation, production, processing, and sale of cannabis. This immediately led to an increase in private investment.

Colombia’s advantages also include:

• Good climatic conditions for agricultural business and cannabis cultivation
• Good geographical location
• Adapted legislation
• Cheap labor

All these factors have led Colombia to soon become the leader of the cannabis market. This means that investment in this country can be called a win-win situation.

The cannabis industry in Peru

While the worldwide cannabis industry is moving quickly, in Peru, the legislation is just beginning to change. There are heated discussions at all levels of society about how legal the use of cannabis and its derivatives can be.

Therefore, it is impossible to call jurisdiction an ideal place to invest in cannabis, although all experts say that there is very little time left before the ban and restrictions are completely abolished.

The current Law No. 30681 regulates all issues related to cannabis, but it is difficult to call it too liberal. On the other hand, the Peruvian government is well aware that excessive control will frighten investors who will prefer neighboring countries.

This means that the country will lose a significant part of its budget revenues. Peru has legalized only medical hemp, so while the cannabis business is worth considering, investors should do their due diligence before betting on that market.

Mexico’s cannabis industry

Mexico has already legalized medical cannabis in June 2017.  This simultaneously allowed any transactions with products containing tetrahydrocannabinol (THC) in concentrations of up to 1%.

Representatives of both the executive and the judiciary stated that a relaxation of the laws concerning THC is out of discussion.

The main reason why authorities are thinking of more friendly laws regarding CBD is actually an attempt to level the criminal situation in the country, which remains very tense, not least because of drugs.

But from a cannabis consumer’s perspective, the situation in Mexico is seen in a different light. The ban on growing cannabis together with a permit for its medical use makes the country an extremely promising place of sale in the worldwide cannabis market.

The proximity to the U.S. is likely to be very profitable. So far, Canadian companies are holding the local market, but in a few years, when the suppliers from Latin and South America become stronger, the situation in the worldwide cannabis industry is likely to change.

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(Featured image by Porapak Apichodilok via Pexels)

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First published in InternationalWealth, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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