Mexico Medical Cannabis Market Outlook
The Mexico Medical Cannabis Market size was valued at USD 4.8 Million in 2022 and is expected to surpass USD 24.77 Million by 2031, expanding at a CAGR of 20% during the forecast period, 2023 – 2031. The growth of the market is attributed to the increasing use of medical marijuana to treat chronic conditions such as cancer, neurological diseases, and chronic pain in the country.
Cannabis has been authorized for medical purposes in Mexico and it is anticipated to be legalized for recreational use soon. The majority of marijuana is now sold illegally and the government is likely to legalize it in order to reduce this unlawful activity. This is expected to aid in the monitoring of products entering the supply chain while also allowing them to benefit from taxes collected on them.
As the demand of cannabis is rising rapid among a large population and patient pool, medical marijuana is expected to become one of the most profitable businesses in Mexico in the coming years.
Several research studies have demonstrated the potential benefits of marijuana in the treatment of cancer and other chronic illness. One of the factors driving the market is expected to be the high prevalence of cancer.
According to the World Health Organization (WHO), approximately 190,667 new cancer patients were diagnosed in Mexico in 2018. There are numerous studies that support marijuana's anti-cancer benefits, which is increasing its use in cancer treatment.
Since June 2017, the use of medical marijuana has been made legal in Mexico. The country's health licenses for marijuana growth, harvesting, and manufacture are solely for medical and research purposes.
In Mexico, cannabis regulations are not well-regulated and is subject to a secondary control by the Federal Commission for the Protection Against Health Risks. Marijuana is only permitted to be consumed with a physician's prescription and its distribution is regulated by the government.
Individual importation of marijuana for medical purposes is also permitted. Imported cannabis products, on the other hand, must have a THC content of less than 1%, as per the rules provided by the Federal Criminal Code and the General Health Legislation statute.
As a result of the impending legalization of marijuana, numerous huge corporations such as Aurora Cannabis have begun to acquire smaller businesses in the country. Aurora Cannabis acquired Farmacias Magistrales S.A., giving the company a major advantage and exclusive access to the expanding Mexican medical marijuana industry.
Furthermore, additional Canadian market giants such as Canopy Growth Corporation and Tilray are expected to enter this market upon its legalization for recreational use, owing to the enormous potential it would possess.
Mexico Medical Cannabis Market Trends, Drivers, Restraints, and Opportunities
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Growing acceptance of medical marijuana for the treatment of chronic ailments such as cancer, neurological diseases, and chronic pain is anticipated to boost the market growth during the forecast period.
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High prevalence of cancer and growing disease burden in the country are estimated to push the market growth during the forecast period.
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Underway policies for legalization of recreational marijuana in the country is expected to curb illegal marijuana trafficking and shift the business to legal marijuana entrepreneurs. This is projected to fuel the market expansion.
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Favorable government policies for better planning, regulation, and implementation of cannabis development and extraction. The government is anticipated to get profit from taxes paid on legal cannabis sales.
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Lack of substantive policies to produce cannabis products to a large extent is a key challenge that can hamper the market growth.
Scope of Mexico Medical Cannabis Market Report
The report on the Mexico medical cannabis market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Medical Cannabis Market - Mexico Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Applications (Chronic Pain, Mental Disorders, Cancer, and Others) and Products (Oils, Buds, and Tinctures)
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Country
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Mexico
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Aurora Cannabis; Canopy Growth Corporation; GW Pharmaceuticals, plc; CB Science, Inc.; HempMeds; CBD Life; and Isodiol International, Inc.
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Mexico Medical Cannabis Market Segment Insights
Chronic pain segment is projected to account for a large market share
Based on applications, the Mexico medical cannabis market is divided into chronic pain, mental disorders, cancer, and others. The chronic pain segment is expected to account for a key share of the market during the forecast period owing to increasing public understanding of cannabis' medical advantages and a growing geriatric population in the country.
Chronic pain is defined as pain that lasts for six months or more and is a major source of concern for a huge number of people in Mexico. Neurogenic, arthritic, cancer, lower back-related disorders, neck-and-face discomfort, and headache are all common diseases with persistent pain as a symptom.
The aging population in particular is more vulnerable to both chronic and acute pain, increasing the demand for pain management medications.
According to the National Institute of Statistics and Geography (INEGI), the Mexican population in 2018 included 13 million elderly people, indicating a large potential client base. Furthermore, studies show that medical marijuana helps to offer older individuals with chronic pain management.
As a result, the market for chronic pain management is a key driver projected to boost the segment growth. In the case of marijuana, however, there are questions about dosages and routes of administration when it comes to pain management.
Buds segment is expected to dominate the market
On the basis of products, the market is divided into oils, buds, and tinctures. The buds segment is expected to dominate the market during the forecast period owing to expanding indigenous production, increasing availability, and lowering prices of the products.
Meanwhile, the oil segment is projected to constitute a key market share in the coming years as marijuana oil is widely used to treat diseases and disorders such as cancer and nausea along with improving sleepiness as well as relieving stress and anxiety.
it has been legalized in the country due to its strong potential for medical use. Marijuana oil comes in a variety of forms including edibles, vapes, topicals, and other items.
However, the tinctures segment is anticipated to expand at a rapid pace during the forecast period. Marijuana tinctures are produced by dissolving the drug in alcohol and are meant to be taken under the tongue.
When compared to oils, they offer fast result and quick effect. Oils and other kinds of cannabis treatments take 45 minutes to take effect, whilst tinctures take only 15 minutes to see the effects.
Segments
Applications
- Chronic Pain
- Mental Disorders
- Cancer
- Others
Products
Country
Key Players
- Aurora Cannabis
- Canopy Growth Corporation
- GW Pharmaceuticals, plc
- CB Science, Inc.
- HempMeds
- CBD Life
- Isodiol International, Inc.
Competitive Landscape
Key players competing in the Mexico medical cannabis market are Aurora Cannabis; Canopy Growth Corporation; GW Pharmaceuticals, plc; CB Science, Inc.; HempMeds; CBD Life; and Isodiol International, Inc.
Existing players face moderate competition as just a few companies have the technology, financial resources, and legal approval to engage into large-scale marijuana cultivation. Furthermore, the availability of research money is critical in encouraging additional entrepreneurs to enter the Mexican market with innovative products.
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