Latin America: The Newest Market for CBD products
Updated: Jun 24, 2019
Colombia Approves the Export of CBD Health and Wellness products
June 1, 2019 -
Most participants in America’s CBD industry are primarily focused on the U.S. market for CBD and CBD-infused products. But CBD is quickly becoming a global opportunity.
At Phyto Intel we have described the CBD industry as the world’s second largest, new legal industry, only surpassed by cannabis in general, which is the largest.
While Canada’s and Europe’s CBD markets have gained media attention, Latin America should be on CBD producers’ radar screens.
Colombia’s Instituto Nacional de Vigilancia de Medicamentos y Alimentos, the country’s National Food and Drug Surveillance Institute, recently issued approval for the production, sale and most importantly, the export, of five CBD health and wellness products.
The approval was granted to Blueberries Medical Corp. for CBD health and wellness products, consisting of a lip balm, face cream, body cream, beauty balm, and shampoo.
It is one thing to have the ability to export CBD products. It’s another to be able to import the products into other Latin American countries, which will require government approval for the importation. We’ll have to wait and see which countries Blueberries will be able to export their CBD products to.
Growth Advisory’s Conclusion
Latin America’s economic “800 pound gorilla” is the Brazilian market, the world’s ninth-largest economy. Latin America’s second largest economy is Mexico. The key for any CBD producer's Latin American strategy is either being able to manufacture in or import CBD products into these two countries. While there will be opportunities in other Latin American economies, compared to Brazil and Colombia, they’ll at best be “rounding errors.”
As a viable market for CBD products develops in Latin America, basing a business model on an export strategy to Latin American countries is not likely a long-term opportunity. If initially countries in Latin America legalize the importation of CBD products, it will likely be a stop-gap measure. It’s likely that these other countries will allow imports until they can develop their own home-grown hemp and CBD industries, creating new local jobs and new agricultural-based businesses.
About Growth Advisory Group Intel
Growth Advisory Group provides strategic assistance to enable businesses and entrepreneurs to enter and succeed in the fast-growing and fast-evolving legal cannabis, hemp and CBD markets, in the United States and globally.
Growth Advisory Group also provides market intelligence, formulation and “go to market” strategies for Consumer Packaged Goods (CPG) companies interested in developing, formulating, manufacturing and marketing products containing hemp seed oil and/or CBD.
Michael King-Sadick, CEO