Whereas North America is one of the wealthiest parts of the world, Latin America still suffers from the economic crisis, unemployment and low level of life. The recent boost in marijuana popularity all around the world can help Latin America to become more prosperous and to bolster the economic development of Latin American countries.
Medical and legal recreational cannabis is earning popularity all around the world. Cannabis is used in medicine, healthcare, cosmetology, and other spheres of human life. It made world investors think of how to give their money to cannabis-oriented companies (manufacturers and exporters), mainly to the ones located in Latin America and Caribbean.
Such interest in Latin America is good for the inhabitants of these territories, but it also requires responsibility and proper financial planning. In the near future, new plantations need to be developed and new factories and manufacturing institutions are to be organized. This means that not only investments but also educated professionals to control processes are required.
The truth is that in the previous century, Latin America suffered from drugs a lot. High instability, street violence, uncertainty in income, and many social problems flooded Latin America because of the illegal drug trade in the second half of the XX century. Mexico, Colombia, Bolivia, and Peru are the most vulnerable to this instability because of drugs.
As for now, these countries have gone through a number of changes both to eliminate criminal situations and to get rid of stereotypes. The requests for investments from other countries in the world shows that the fight against illegal drug trade was successful and the reputation of these countries are about to be re-established in the eyes of the world community.
The question is how the opportunity to renovate the trade of marijuana will influence the contemporary development of the country, as it is needed both for medical purposes and also to fill the best cbd vape cartridge, for example. , for example. Besides, how the authorities will be able to swim between two waters: possible increase in crime rate and great investments from abroad.
About a decade ago, the situation started changing.
The attitude towards drugs changes to milder; in some regions, marijuana is decriminalized at least for medical use. The result is that in 2017 cannabis has become one of the most exported legal productions. The reason for this is also the fact that such countries as Canada and the United States face difficulties with cannabis legalization.
The primary advantages of investing in South American cannabis companies:
- Production costs are extremely lower than in developed countries because both the workforce, transportation, and resources are cheaper there.
- paying the bills -
The number of consumers that buy marijuana plants and cannabis-infused products grow yearly.
CBD Juul pods are getting more popular among youth all around the world.
There are more than 40 licensed brands in the region, and there are many more in the process of getting legal.
Economists note the ‘marijuana revolution’ in the region meaning it’s coming out from the shadows of the legal market.
As one of the first countries to legalize medical marijuana, Chile’s authorities allow people to get prescriptions and even to grow up a limited number of points at home since 2015. Global cannabis producers actively distribute their goods through local companies. The corporation has more than three thousand Spanish-speaking clients and expands to other markets.
Because of the possibility to grow cannabis at home, in Chile, a special app, which allows automotive cultivation of at-home marijuana, was developed. This app has even won the competition of start-ups, which means that the activity is famous not only among big business (like pharmaceutical companies) but also among ordinary people.
Mexico is one of the wealthiest regions in terms of cannabis. Former president of the country is also a member of the board of directors of the company, which exports cannabis products to Columbia. He is convinced that it is possible to develop the region economically using the cannabis industry with no addictive harm to people.
That is why the dosage allowed for personal use is <5g. Marijuana was legalized in Mexico only three years ago, but there are no complaints as for its danger. They claim that medicine (meaning medical marijuana) will always be topical for people even if they will have no money for entertainment like cbd pods. This is the basic explanation to attract investors.
About 44% of Latin American medical marijuana market belongs to this region. Since 2017 the market is controlled by Colombian market to make the country a global hub for American, Canadian, and European markets and it is comparatively easy to get a license in Columbia. The speed of market growth attracts both foreign and local business people.
The most effective cooperation is conducted with Canada. The partnership Canada-Colombia is a strong prosperous unit. They deal not only with cannabis planting, but also medical marijuana production. They deal with research and develop new methods of turning marijuana plants into advantageous and lucrative substances for sale.
Last year the government passed a law that regulates the production and distribution of medical marijuana. The legislation now controls the marijuana market. Canadian pharmaceutical holdings show interest in local agribusinesses, which makes the local market boom and the economy of Peru grow.
For sure, this is not easy to work in an international area. To make such cooperation real, the country had undergone a number of reforms to meet the international standards of manufacturing and transportation, which is important both for the industry itself and for the general focus of the country.
General Trends of Cannabis Industry in Latin America
The interest in cannabis both as a part of medical treatment and as the filling for cbd vape pen cartridges is growing these days.
The governments of Latin America react progressively to such a such a modern trend. Such tolerance to marijuana in the region with the combination of legal regulation makes it sake and advantageous for the district to grow, manufacture, and sell cannabis-infused products.
Also, this industry helps the local population to develop infrastructure and industrialize the region so that they get more workplaces, the level of income is growing.
The social care sector is being improved. Dealing with marijuana makes the government aim to reach international standards of both production, trade, and level of life.