GVR Report cover Mexico Hemp CBD Market Size, Share & Trends Report

Mexico Hemp CBD Market Size, Share & Trends Analysis Report By Sale Type (B2B, B2C), By End Use (Medical, Personal, Pharmaceuticals, Wellness), And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-4-68038-087-3
  • Number of Report Pages: 76
  • Format: PDF, Horizon Databook
  • Historical Range: 2018 - 2021
  • Forecast Period: 2023 - 2030 
  • Industry: Healthcare

Mexico Hemp CBD Market Size & Trends

The Mexico hemp CBD market size was valued at USD 11.3 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 26.1% from 2023 to 2030. Favorable government policies that contributed to the increasing adoption of hemp-derived products and the growing acceptance of cannabidiol (CBD) among users due to its innumerable health benefits are expected to drive market growth. Moreover, growing awareness about cannabidiol due to its non-psychoactive properties is anticipated to drive the market for hemp CBD over the forecast period. According to the National Center for Biotechnology Information (NCBI), hemp seeds contain approximately 30% protein and 10% omega-3 fatty acids, essential nutrients our bodies cannot produce naturally. Protein is crucial for building and repairing tissues, while omega-3 fatty acids support brain function and reduce inflammation. Including these foods in our diet ensures we obtain these essential nutrients for overall health and well-being.

Mexico Hemp CBD Market size, by product, 2020 - 2030 (USD Million)

For instance, in March 2023, Xebra Brands Ltd., a Mexican subsidiary, obtained a permit from a federal agency to cultivate, process, and market cannabis with a THC content of under 1%. This permit allows the company to engage in legal activities related to cannabis within the specified THC limit. It opens up opportunities for the company to participate in the growing cannabis market while adhering to the regulations set by the federal agency to ensure responsible usage and compliance with the law.

The usage of cannabidiol is growing at a significant rate in the country. Products such as oil, beverages, beauty and skincare products, gummies, capsules, and pet foods are preferred among people due to their health benefits. Also, cannabidiol is used extensively in the manufacturing of medical drugs due to a lack of psychoactive effects. Moreover, the legalization of these products has created opportunities for end-user industries to expand their market reach in Mexico.

For instance, in 2017, the Mexican government passed a law legalizing the use of CBD (cannabidiol) for medical purposes. This law allows individuals to use CBD to treat various conditions, such as epilepsy, chronic pain, and nausea. Moreover, the legislation permits the cultivation and production of CBD for medical use, providing patients access to potentially beneficial treatments derived from cannabis. This move marks a significant step towards recognizing the therapeutic potential of CBD and expanding medical options for patients in Mexico.

Mexico is the second-largest market for personal care products in Latin America. Products with natural and organic ingredients are reporting high demand because of the strong need among consumers to use natural products. This, in turn, is creating a demand for cannabidiol-based skincare products as they possess anti-inflammatory, anti-aging, and antioxidant properties. Moreover, customers can easily access these products from online and retail stores. This high availability of products and growing demand for chemical-free products is expected to drive sales of hemp-derived CBD during the forecast period.

According to the International Trade Administration, cosmetics and personal care products play a significant role in the consumer goods sector in Mexico. The country holds a prominent position in the global market, ranking among the top 10 markets for these products and being the second-largest market in Latin America. However, recent challenges, such as the impact of the COVID-19 pandemic and high inflation rates not seen in decades, have led to sluggish growth and conservative economic predictions. Import statistics indicate a contraction of over 3 percent in the last two years, contrasting the usual eight percent annual growth rate trend. Nonetheless, with the gradual return to pre-pandemic activity levels, there are positive expectations for the future growth of Mexico's cosmetic and personal care products market.

However, the high cost of CBD products is obstructing market growth. The cost of cannabidiol is high and fluctuates from one company to another. Their prices depend on farming practices, quality, extraction process cost, laboratory testing cost, and various other factors. The extraction of cannabidiol from hemp is an expensive process, as currently, there are a limited number of processors available for extracting cannabidiol from hemp biomass. The need for more processors is increasing the overall cost of products. Moreover, importing CBD-based products from other countries also increases the overall price of these products.

End Use Insights

Based on end-use, the market for hemp CBD is segmented into medical, personal, pharmaceuticals, and wellness. The pharmaceutical segment is anticipated to dominate the market for hemp CBD with a revenue share of over 45% in 2022 and is expected to grow at the fastest CAGR of 27.1% over the forecast period. The increasing acceptance and recognition of the potential therapeutic benefits of CBD in managing certain medical conditions is expected to drive the demand for CBD-based pharmaceutical products in the country. According to the World Health Organization (WHO), over 28% of adults are expected to experience a mental health disorder at some point in their lives, and anxiety is one of the most common conditions. The COVID-19 pandemic has led to a 23.4% increase in anxiety disorders among the Mexican population due to confinement and other pandemic-related effects. CBD, a non-psychoactive compound found in cannabis, has shown promise in reducing anxiety and stress without causing addiction or adverse effects. It is well-tolerated and considered safe, with emerging evidence supporting its potential as an anxiolytic agent.

Mexico hemp CBD Market Share, by end use, 2022 (%)

Moreover, there is a growing body of research that suggests that CBD is expected to be effective in treating a variety of conditions, including pain, anxiety, and epilepsy. This research is driving the development of new CBD-based pharmaceuticals. For instance, in 2022, TecSalud and Cardiol Therapeutics conducted a study investigating the potential use of a molecule derived from CBD to treat COVID-19 patients. The molecule, which was named CBD-Rx, was shown to be effective in reducing the severity of COVID-19 symptoms in patients. However, further research is needed to determine the long-term safety and efficacy of CBD-Rx. The study was conducted at the TecSalud Zambrano Hellion Hospital in Mexico City. The study involved 100 COVID-19 patients randomly assigned to receive either CBD-Rx or a placebo. The patients who received CBD-Rx had significantly lower levels of inflammation and a lower risk of developing severe COVID-19 symptoms. The study was funded by the Mexican government and by Cardiol Therapeutics.

Sale Type Insights

Based on the distribution channel, the Mexico hemp CBD market is further segmented into B2B and B2C. The B2B channel is anticipated to dominate the market in terms of revenue share in 2022 and is expected to be the fastest-growing segment with a CAGR of 26.5% over the forecast period. The B2B channel mainly includes direct sales, indirect sales, online sales, and partnerships. The demand for CBD products is increasing in Mexico, both for medical and recreational use. This is being driven by a number of factors, including the growing awareness of the potential health benefits of CBD, the legalization of CBD for medical use in Mexico, and the increasing availability of CBD products.

For instance, in March 2021, Mexico's Chamber of Deputies approved the Cannabis General Law project, which was later sent to the Senate for final approval. The primary goal of this law is to legalize different aspects of cannabis use, including research, recreational use for personal consumption, and industrial use for commercial purposes. However, individuals who wish to use cannabis for personal use will need to obtain a permit from the National Commission for Addictions. This permit will allow them to grow up to 6 cannabis plants for personal use, while households with more than 2 adults can grow up to 8 plants. In addition, the possession and transport limit for cannabis will increase from 5 to 28 grams. For commercial cultivation and sale of cannabis, a license from the National Commission for Addictions will be required.

Key Companies & Market Share Insights

Key players in the market are focusing on adopting growth strategies, such as mergers and acquisitions, developing existing devices, promotional events, and technological advancements. For instance, in 2023, Hempacco Co, Inc. is a leading company that creates special products using hemp, such as hemp cigarettes and smoking papers, as alternatives to regular tobacco items. Their innovative approach is making a significant impact in the tobacco industry, valued at USD 1 Trillion. Recently, they joined forces with Paradise Shop Mexico, a well-known distributor of cannabis products in Mexico, to promote and sell their hemp and CBD products. Some of their offerings include Cheech & Chong Smokables and Wraps, Rick Ross's Hemp Hop Smokables, The Real Stuff Hemp Smokables and Wraps, and they are expected to introduce soon products made with hemp endorsed by Snoop Dogg.

Key Mexico Hemp CBD Companies:

  • Canopy Growth Corporation
  • AURORA CANNABIS INC.
  • ENDOCA
  • Elixinol
  • CV Sciences, Inc.
  • CBD Life
  • HempMeds
  • Joy Organics

Mexico Hemp CBD Market Report Scope

Report Attribute

Details

Revenue forecast in 2030

USD 74.3 million

Growth rate

CAGR of 26.1% from 2023 to 2030

Base year for estimation

2022

Historical data

2018 - 2021

Forecast period

2023 - 2030

Report updated

October 2023

Quantitative units

Revenue in USD million/billion and CAGR from 2023 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Sale type, end use

Country scope

Mexico

Key companies profiled

Canopy Growth Corporation; AURORA CANNABIS INC.; ENDOCA; Elixinol; CV Sciences, Inc.; CBD Life; HempMeds; Joy Organics

Customization scope

Free report customization (equivalent to up to 8 analysts’ working days) with purchase. Addition or alteration to country & segment scope.

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Mexico Hemp CBD Market Report Segmentation

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the Mexico hemp CBDmarket based on sale type and end use:

  • Sale Type Outlook (Revenue in USD Million, 2018 - 2030)

    • B2B

    • B2C

  • End Use Outlook (Revenue in USD Million, 2018 - 2030)

    • Medical

    • Personal

    • Pharmaceuticals

    • Wellness

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