Almost every week, an American or Canadian cannabis company announces a large overseas investment. And it’s no longer just Germany, Israel and Australia that are piquing investors’ interest. Emerging markets like Jamaica are also turning heads.
The largest investment opportunities might be found in other emerging markets — especially South America for cannabis and Southeast Asia for hemp. What makes these regions so interesting? What factors make countries like Uruguay and Colombia so attractive for cannabis-focused investors?
A Growing Grow Market
Legal cannabis sales in “key South American markets” are expected to surge from just $125 million in 2018 to $776 million by 2027, according to a recent report released by Arcview Market Research in partnership with BDS Analytics.
“While Brazil and Argentina will far outweigh other countries in terms of spending, Uruguay is the clear leader in early liberalization of its cannabis regulations,” the report said. “Any adult citizen/legal resident of Uruguay can now legally purchase cannabis from pharmacies at government-controlled prices intended to undercut illicit market rates and starve out cartel operations there.” [Read more at Benzinga]