The 2020 general election here in the U.S. proved to be a historic one for the cannabis industry, with states working to implement newly passed cannabis laws in the first quarter of 2021. This may have overshadowed the big news coming from our Southern neighbors shortly after: The U.S. will soon be sandwiched between two large, national legal cannabis industries.
At the end of 2020, Mexico passed a legalization bill through their senate. The bill has faced some delays, mostly from a debate about how to implement the law, including possible requirements for consumers. But once it’s up and running, Mexico’s cannabis market has the potential to be the largest legal cannabis market by population in the world.
A report released this week by Headset, a data firm that specializes in the cannabis market, projects Mexico’s market at a whopping $843.7 million, perhaps unsurprising given the many millions of adults who will soon have access to it.
The report, as cited by Ganjapreneur, included projections about how the market will start (without edibles if they mirror what US states and Canada have done and with shortages until supply catches up with the increase in demand) followed by a rapid increase in the use of inhalable cannabis products.
Wait & Watch
While we celebrate the expansion of our industry and another strong year for the U.S. cannabis industry, we will be eagerly waiting & watching to see what happens in Mexico’s new mega market. A lot will depend on how the bill actually goes into effect, including restrictions and limitations imposed by the government, and how quickly cannabis production ramps up.