Mexico Hemp Cannabidiol Market

The Mexico hemp cannabidiol market size was valued at USD 47 million in 2019 and is anticipated to expand at a significant CAGR during the forecast period, 2021-2028. The growth of the market is attributed to the increasing adoption and awareness of cannabidiol or CBD for numerous health conditions. The Mexican government has legalized the production, cultivation, and usage of medical CBD which has less than one percent tetrahydrocannabinol or THC which has non-psychoactive properties.

Cannabidiol is a variant of Phyto cannabinoid which is one of the different cannabinoids present in cannabis plants. This plant has up to 40% of tetrahydrocannabinol present in its extract. Clinical research and studies shows that CBD can be effective against chronic diseases such as anxiety, movement disorders, body & internal pain and cognition. CBD can be consumed in different ways, such as inhaling cannabis vapor & smoke, aerosol spray , or by mouth. It can be supplied in liquid state such as CBD oil, which contains only the pure CBD acting as an active catalyst ingredient. Other means include CBD-dominant hemp extract oil, dried cannabis, prescription liquid solution and capsules. The CBDs do not have relative psychoactivity as the tetrahydrocannabinol or the THC and can alter the effects of these terpenes present on the body under the scenario where both CBD and THC are present. According to the WHO report survey in Mexico, one in every four Mexican uses CBD, whereas more than 50% of Mexicans believe that CBD is legal throughout the country. More than 75% of the Mexicans use CBD for pain and inflammation relief purposes.

The COVID-19 pandemic has hindered the growth of the Mexico hemp cannabidiol market mainly because of the disruption caused in the hemp CBD supply chain management. The strict protocols enforced by the government authorities made distribution of cannabis more difficult than normal. The medical purposes also saw a decline as they can conduct viruses at a faster pace, especially unhealthy individuals. After the COVID pandemic, however, the hemp cannabidiol market is expecting to boom back to even a two digit CAGR expansion.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing the range of applications of hemp CBD along with the demand and requirement of hemp oil are projected to boost the Mexico market growth during the forecast period, 2021-2028.
• Rapid growth in the research and development activities regarding the potential of CBD from hemp, measuring their benefits verses that side-effects and the amount of funding and investments from both the Government administrative bodies and private investors  are major factors driving the market expansion in the coming years.
• The high cost and prices of CBD products becomes a huge restraint in the Mexico hemp CBD market. The prices are also fluctuating between the companies that produce CBD, depending upon their manufacturing cost.
• The administration of hemp CBD needs to be strict, especially regarding age, underaged children consuming  can cause dire consequences. The process of obtaining medical marijuana and CBD is not streamline, even with a doctor’s prescription, which ultimately restricts the regional market growth.
• R&D investment and technological advancement are expected to offer significant opportunities for the market players. Researchers and scientists have now discovered new kinds of CBD which can be used for different and daily applications such as skincare & personal industries, food & beverage industries, and antiaging & anti-acre properties.

Scope of the Report

The report on the Mexico hemp cannabidiol market size includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Mexico Hemp Cannabidiol Market Segment Insights

B2C segment is projected to represent a large market share

Based on distribution channels, the Mexico hemp cannabidiol market is bifurcated into B2B and B2C. The B2C segment is further divided into pharmacies, online stores, and retail stores. The B2C segment is expected to constitute the major share of the market in 2019 with a revenue over USD 25 million. This can be attributed to the channels available for this customer base such as pharmacies, retail stores, and online stores. The retail stores present multiple CBD products including personal care items, energy drinks, and food drinks without the requirement of any prescriptions offered at attractive prices. The wider access of the internet in this region allows the online stores to be more effective in Mexico.  

Personal use segment is anticipated to register a major market share

On the basis of end-uses, the Mexico hemp cannabidiol market is segmented into personal use, personal care & cosmetics, food & beverages, nutraceuticals, and others. The personal care & cosmetics segment is further bifurcated into skin care and others. The personal use segment is expected to constitute a major share of 53% of the market in 2019. This is attributed to the increasing use of CBD oil in numerous personal cares to obtain their health benefits along with the easy accessibility of these products from both online stores and retail stores.

Segments

Segments Covered in the Report

The Mexico hemp cannabidiol market size has been segmented in terms of

Distribution Channels

• B2B
• B2C
  • Pharmacies
  • Online Stores
  • Retail Stores

End-Uses

• Personal Use
• Personal Care & Cosmetics
  • Skin Care
  • Others
• Food & Beverages
• Nutraceuticals
• Others

Region

• Mexico

Key Players

• HempMeds (Medical Marijuana Inc)
• Aurora Cannabis
• ENDOCA
• CBD Life
• Elixinol
• Joy Organics

Competitive Landscape

Major players competing in the Mexico hemp cannabidiol market are HempMeds (Medical Marijuana Inc); Aurora Cannabis; ENDOCA; CBD Life; Elixinol; and Joy Organics. These market players are involved in several business strategies such as mergers, acquisitions partnerships, collaborations, capacity expansion, and product launches to enhance their market shares.

For Instance, ENDOCA signed a partnership with Tough Mudder Inc in 2019. Tough Mudder is a lifestyle, media and events company serving sports events for obstacle courses providing in countries including Canada, Germany, United Kingdom, and the United States of America. Through this deal, Tough Mudder becomes ENDOCA’s CBD sponsor and partner for CBD products.