Mexico Medical Cannabis Market Size, Share & Trends Report

Mexico Medical Cannabis Market Size, Share & Trends Analysis Report By Application (Chronic Pain, Cancer), By Product (Oils, Buds, Tinctures), And Segment Forecasts, 2019 - 2025

  • Published Date: Jun, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-3-68038-115-3
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 47

Industry Insights

The Mexico medical cannabis market size was valued at USD 47.3 million in 2018 and is anticipated to register a CAGR of 27.7% over the forecast period. Growing adoption of medical marijuana for the treatment of chronic conditions such as cancer, neurological diseases, and chronic pain is a key factor expected to drive the market. Cannabis has been legalized in Mexico for medical use and is soon expected to be legalized for recreational purposes as well. Currently, majority of the marijuana is sold through illicit channels, and in order to curb this illegal trade, the government is expected to legalize it. This will help in monitoring products that enter the supply chain, while reaping benefits of taxes levied on these products.

Medical marijuana is expected to emerge as one of the most lucrative businesses to venture into in Mexico in the coming years due to large population and patient pool. Various research studies have shown the potential benefits of marijuana in the treatment of cancer, thereby increasing its demand in cancer therapy.

Mexico medical cannabis market

High prevalence of cancer is expected to be one of the factors driving the Mexico market. For instance, according to WHO in 2018, about 190,667 new patients in Mexico suffered from cancer. There are various supportive studies validating the anti-cancerous benefits of marijuana, increasing its adoption in cancer treatment. The growing disease burden and increasing adoption of cannabis for medical use are expected to drive product demand for over the forecast period.

Medical marijuana has been legalized in Mexico since June 2017. The health licenses for cultivation, harvesting, and production of marijuana in the country are exclusively limited to medical and research purposes. The laws pertaining to cannabis in Mexico are not that well-regulated and go through a secondary regulation by Federal Commission for the Protection against Health Risks. It can be only imported in Mexico for medical purposes or for scientific research. There are some set rules that mandate marijuana consumption only through physician prescription, and its dispensing is controlled by the government. Moreover, individual importation of marijuana is permitted for medical purposes. However, the cannabis products that are imported must have their THC content below 1%. These rules are governed under the General Health Legislation law and the Federal Criminal Code.

The imminent legalization of recreational marijuana is expected to terminate illegal drug trafficking and shift the business to legal marijuana entrepreneurs. This will allow planning, regulation, and implementation of strategies, thus improving market potential in Mexico. This would also enable the government to earn via taxes levied on legal cannabis sales. Due to the imminent legalization of cannabis, many large companies, such as Aurora Cannabis, have started acquiring smaller firms in the country. Aurora Cannabis acquired Farmacias Magistrales S.A., which would provide the company a first-mover advantage and an exclusive supply of medical marijuana to the growing Mexico market. Moreover, other Canadian market leaders, such as Canopy Growth Corporation and Tilray, are expected to enter this market owing to the immense potential it will hold post legalization for recreational use.

Product Insights

As of 2018, marijuana buds emerged as the largest segment, accounting for 47.4% of the revenue owing to their low price and easy availability. Moreover, with legalization of cannabis for recreational use, this segment is anticipated to remain dominant in the coming years. However, with growing indigenous production and expansion in availability and drop in price, the oil segment is expected to emerge as the fastest growing segment by the end of 2025, toppling the buds segment.

Marijuana oil is used for treatment of diseases and conditions such as cancer and nausea, and can also be used for improving sleep and alleviating stress and anxiety. Due to its high potential in medical use, it has been legalized in the country. Marijuana oil is available in various forms: edibles, vapes, topicals, and other products. The demand for smoking cannabis is decreasing owing to increasing social stigma regarding its smoking. Moreover, doctors are not comfortable with patients smoking, as it has potentially harmful components—particles, tar, and other chemicals. Thus, the adoption of oil is anticipated to witness robust growth.

Tinctures are expected to emerge as the second fastest growing segment in the Mexico medical cannabis market by product type. Marijuana tinctures are made by dissolving the drug in alcohol and are intended to be consumed sublingually. They exhibit a more rapid onset of action compared to oils. The onset of action of oils and other forms of cannabis medications is around 45 minutes, while tinctures show effect in around 15 min. In case of patients suffering from severe pain, waiting for 15 minutes is a viable option compared to 45 minutes. Due to this advantage of tinctures, their demand is expected to increase over the forecast period.

Medical Application Insights

Chronic pain is anticipated to emerge as the largest segment by revenue in the Mexico market. Pain that persists for 6 months or longer is termed as chronic pain, which is a major concern for a large number of patients in Mexico. Common diseases that include chronic pain as a symptom include neurogenic, arthritic, cancer, lower back associated disorders, neck and face pain, as well as headache.

The elderly population group in particular is more susceptible to chronic as well as acute pain, raising the demand for pain management medication. For instance, according to the National Institute of Statistics and Geography (INEGI) in 2017, the Mexican population consisted of 13 million geriatric individuals, which indicates a massive potential customer pool. Moreover, research studies indicate that medical marijuana relieves chronic pain in elderly patients. Therefore, increasing awareness regarding the medical benefits of cannabis and growing geriatric population are expected to drive the market for chronic pain management. However, there are dosage and route of administration concerns related to pain management in case of marijuana.

Mexico medical cannabis market share

Marijuana is majorly used for treatment of mental disorders that do not respond to other alternative treatment options. Mental disorders such as post-traumatic stress disorder (PTSD), anxiety disorders, depression, bipolar disorder, multiple sclerosis, attention deficit hyperactivity disorder (ADHD), Alzheimer’s, and Parkinson’s disease are all presumed to be effectively treated by medical marijuana, owing to higher therapeutic effects. Due to legalization of cannabis for medical use in Mexico, demand for the same has increased.

Mexico Medical Cannabis Market Share Insights

Competition among existing players is moderately high as very few companies have the technology, financial resources, and legal clearance to venture into large-scale cultivation of marijuana. Moreover, availability of research funding also plays a vital role in encouraging more companies to launch innovative products in the Mexico market. Some operating and expected players in the market are Aurora Cannabis; Canopy Growth Corporation; GW Pharmaceuticals, plc; CB Science, Inc.; HempMeds; CBD Life; and Isodiol International, Inc. Growing market demand is expected to result in the entry of several new players in the near future.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million and CAGR from 2019 to 2025

Regional scope

Latin America

Country scope

Mexico

Report coverage

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

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Segments Covered in the Report

This report forecasts revenue growth at a country level and provides an analysis of latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research, Inc. has segmented Mexico medical cannabis market report on the basis of product and medical application:

  • Product Outlook (Revenue, USD Million, 2014 - 2025)

    • Buds

    • Oils

    • Tinctures

  • Medical Application Outlook (Revenue, USD Million, 2014 - 2025)

    • Chronic Pain

    • Mental Disorders

    • Cancer

    • Others

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