Latin America Medical Cannabis Market

Market Overview

The Latin America Medical cannabis market size witnessed significant growth in the past and is expected to grow at a CAGR of 19.6% during the forecast period (2022-2030).

Medical cannabis, also known as medical marijuana, is a herbal medication derived from Cannabis plants used to treat specific symptoms or diseases, such as cancer, chronic pain, and psychiatric disorders. Tetrahydrocannabinol (THC) and cannabidiol (CBD) are the main cannabinoids extracted from this plant that provide medicinal benefits.

It is anticipated that the advancement of medicinal cannabis will fuel the development of this industry over the coming years through clinical trials and judgments made by regulatory agencies in developed countries. In addition, it is anticipated that over the forecast period, the status of medicinal cannabis will improve because of clinical trials and decisions taken by regulatory agencies in developed countries. But the market is constrained by a dearth of knowledge about the advantages of medical marijuana and strict regulatory requirements.

Highlights

• Dissolvable/Powders dominate the market by Product.
• Cannabidiol dominates the market by Derivative.
• Inhalation dominates the market by Route of Administration.
• Pain Management dominates the market by Application.
• Inflammatory Pain dominates the market in Pain Management.
• Epilepsy dominates the market in Neurological Health Management.
• Anxiety dominates the market by Mental Health Management
• Hospital Pharmacy dominates the market by Distribution Channel

Market Dynamics

Latin America Medical Cannabis Market Drivers:

Rising Occurrence of Chronic Diseases and Other Medical Conditions

In Latin America, the population is affected by several chronic diseases, including glaucoma, multiple sclerosis, epilepsy, spasticity brought on by multiple sclerosis or spinal cord injury, fibromyalgia, and chemotherapy-induced nausea and vomiting. Because there is strong evidence that cannabis is an effective treatment for many ailments, the demand for cannabis-based medications is rising along with the prevalence of these conditions.

Increasing Acceptance of Medical Cannabis

The acceptance of medical marijuana is rising gradually throughout the Latin American region. This change is ascribed to several things, including rising knowledge of cannabis' therapeutic potential, successful patient tales, and changing societal attitudes toward alternative medicine. The acceptance and demand for medical cannabis are anticipated to increase as more patients and healthcare professionals realize its effectiveness in treating chronic pain, epilepsy, and cancer-related symptoms.

Regulatory Changes

Chronic diseases like cancer, HIV/AIDS, multiple sclerosis, and chronic pain problems are becoming more common in the Latin American region. Medical marijuana has shown promise in easing the symptoms of various diseases, offering relief, and enhancing patients' quality of life. The demand for medical cannabis as an alternative or supplementary therapy is anticipated to soar in Latin America as chronic disease burdens rise.

Latin America Medical Cannabis Market Restraints:

Adverse Effects Associated with Cannabis

Cannabis has been shown to have positive health impacts, but it also has negative ones. Heavy or prolonged cannabis usage has been linked to addiction, altered brain development, decreased life satisfaction, cognitive impairment, and poor educational outcomes, according to a 2017 study published in the Pharmacy and Therapeutics journal. According to a study, dizziness was the non-serious side effect that participants exposed to cannabinoids reported occurring the most frequently (15.5% of the time). Chronic bronchitis and psychosis-related health issues are also more likely to develop in cannabis users over the long term. It is clear from the available data that cannabis' negative side effects can have a significant negative influence on market expansion.

Latin America Medical Cannabis Market Opportunities:

Stringent Government Policies Related to CBD Oil

Chronic diseases like cancer, HIV/AIDS, multiple sclerosis, and chronic pain problems are becoming more common in Latin America. Medical marijuana has shown promise in easing the symptoms of various diseases, offering relief, and enhancing patients' quality of life. The demand for medical cannabis as an alternative or supplementary therapy is anticipated to soar in Latin America as chronic disease burdens rise.

Rising Awareness About the Benefits of Medical Cannabis

There is a growing awareness about the benefits of medical cannabis. People are becoming more aware of the potential of medical cannabis to treat a variety of conditions. This is leading to an increase in the demand for medical cannabis products.

Regional Analysis

The Latin America medical cannabis market is segmented by country into Argentina, Brazil, Chile, Colombia, and Mexico.

Nearly every nation in Latin America has legalized medical marijuana, and some forms of recreational marijuana use are no longer considered crimes in Argentina, Brazil, Chile, Colombia, and Mexico. Most of the time, it is based on the quantity in possession or being grown. The first country to enact legislation establishing a national legal market for medicinal and recreational cannabis was Uruguay in 2013. Mexico is committed to following a similar path in 2020, which the current administration supports.

In Latin America, Uruguay, Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, and Chile all permit the use of cannabis for medical purposes. Ecuador's Criminal Code has undergone modification, which allows expanding access to cannabis for "therapeutic, palliative, or medicinal" uses. Caribbean nations are likewise reexamining their marijuana regulations. For instance, Jamaica changed its laws in 2015 to decriminalize possession, permit the growth of up to five plants, and permit their usage for therapeutic and religious purposes. A regulation allowing the medical use of cannabis products with less than 1% THC was passed in Mexico in June 2017. As a result, Latin America offers several options for indigenous startups to market their goods.

Segmental Analysis

The Latin American medical cannabis market is segmented based on Product Type, Derivative, Route of Administration, Application, Pain Management, Neurological Health Management, Mental Health Management, and Distribution Channel.

Based on Product Type, the Latin America market is segmented by Solids, Dissolvable/Powders, Oil and Ointments, and Creams.

Dissolvable/Powders dominated the market and are expected to register a CAGR of 18.9% over the forecast period.

Based on Derivatives, the Latin American market is segmented by Cannabidiol and Tetrahydrocannabinol.

Cannabidiol dominated the market and is expected to register a CAGR of 19.3% over the forecast period.

Based on the Route of Administration, the Latin American market is segmented by Inhalation, Oral, and Topical.

Inhalation dominated the market and is expected to register a CAGR of 19.4% over the forecast period.

Based on Application, the Latin America market is segmented by Pain Management, Neurological Health Management, and Mental Health Management.

Pain Management dominated the market and is expected to register a CAGR of 21.2% over the forecast period.

Based on Pain Management, the Latin American market is segmented by Neuropathic Pain, Cancer, and Inflammatory Pain.

Inflammatory Pain dominated the market and is expected to register a CAGR of 21.3% over the forecast period.

Based on Neurological Health Management, the Latin America market is segmented by Sclerosis, Epilepsy, Alzheimer’s Disease, Parkinson’s Disease, and Others.

Epilepsy dominated the market and is expected to register a CAGR of 18.3% over the forecast period.

Based on Mental Health Management, the Latin American market is segmented by Post- Traumatic Stress Disorder, Depression, Anxiety, and Others.

Anxiety dominated the market and is expected to register a CAGR of 16.7% over the forecast period.

Based on Distribution Channel, the Latin America market is segmented by Hospital Pharmacy, Retail Pharmacy, and Retail Pharmacy

Hospital Pharmacy dominated the market and is expected to register a CAGR of 20.0% over the forecast period.

Recent Developments

• Jan 2023- MedMen Enterprises stated that it has partnered with cannabis business Curaleaf to create and market medical cannabis products in Florida. This collaboration represents a significant advance toward Florida's legalization of medical marijuana.
• Mar 2023- Trulieve Cannabis Corp announced that it has entered into a partnership with the University of Miami (UM) to research the use of medical cannabis to treat a variety of conditions. This partnership is a major step forward for the research and development of medical cannabis.