Mexico Hemp CBD Market Size, Share, Market Research and Industry Forecast Report, 2020-2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Mexico Hemp CBD Market


An amended version of Mexico’s Federal Law of Cannabis Regulation, which would establish a commercial market for industrial hemp and recreational marijuana, got tentative approval from key Mexican Senate commissions on November 13, 2020.

Members of the Commission on Justice, Health, and Legislative Studies voiced approval of the amended bill, which was circulated earlier this month. More meetings are scheduled this week before an eventual final vote by the commissions. Once the commissions sign off on the bill, it would still need the approval of both houses of the Mexican Congress, and the signature of President Andrés Manuel López Obrador.

Months after approving an original version of the Federal Law of Cannabis Regulation in March 2020, the committees last week scuttled that measure for the amended draft law, which is mandated by Mexico’s Supreme Court to be enacted by Dec. 15, 2020.

The Mexico hemp CBD market size was valued at USD 47.1 million in 2019 and is expected to grow at a significant rate over the forecast period. Key factors attributing to market growth are favorable government policies that contributed to increasing adoption of hemp-derived products and growing acceptance of cannabidiol (CBD) among the users due to its innumerable health benefits. Moreover, growing awareness about cannabidiol due to its non-psychoactive properties is anticipated to drive the market for hemp CBD over the forecast period.

In 2017, the Mexican government legalized the cultivation, production, and use of medical cannabis containing less than 1% tetrahydrocannabinol (THC). This distinctive law passed by the government gave freedom to people for using CBD products in daily life. Moreover, in November 2018, government approved the import and sale of thirty-eight cannabis products which include food supplements, cosmetics, food items, and raw hemp oil. This approval made hemp-derived products easily accessible to the population.

Moreover, 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 lack of psychoactive effects. Moreover, the legalization of these products has created opportunities for end-user industries to expand their market reach 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 for using 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 using chemical-free products is expected to drive sales of hemp-derived CBD during the forecast period.

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 are dependent 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 shortage of processors is increasing the overall cost of products. Moreover, the import of CBD-based products from other countries also increases the overall price of these products.

Distribution Channel Insights

Based on the distribution channel, the Mexico hemp CBD market is further segmented into B2B and B2C. The B2C channel is anticipated to dominate the market with a revenue of USD 25.0 million in 2019. The B2C channel mainly comprises of pharmacies, online stores, and retail stores through which manufacturers are selling their products to the consumers. In 2019, retail stores dominated the market for hemp CBD, whereas, the online stores segment is anticipated to grow at the fastest rate over the forecast period.

The retail stores provide CBD products such as personal care items, food items, and energy drinks without any prescription and at lucrative pricing. Also, the companies operating in the Mexico CBD space are more focused on launching their products via retail chains as a preferred distribution channel. On the other hand, online stores are expected to gain traction in the Mexico market for hemp CBD. This is owing to wider internet access, availability of a wide range of products from numerous producers, and rising per capita expenditure in Mexico.

End-use Insights

Based on end use, the market for hemp CBD is segmented into personal use, personal care and cosmetics, food and beverage, nutraceuticals, and others. The personal use segment is anticipated to dominate the market for hemp CBD with a revenue share of 53.1% in 2019. The growing usage of cannabidiol oil and tinctures in various personal care remedies to obtain its health benefits, and the easy availability of these products through retail or online channels have contributed greatly towards their adoption.

On the other hand, the food and beverage segment is anticipated to grow at the fastest rate over the forecast period. Consumers refraining from consuming cannabidiol in its raw form, owing to its bitter taste and smell, tend to consume it in innovative forms such as gummies, baked food, lemonades, tea, and energy drinks. Also, availability of these forms at affordable prices is attracting a greater population and is expected to drive the market for hemp CBD over the forecast period.

Market Share Insights of Mexico Hemp CBD Market

The market for hemp CBD consists of major players such as HempMeds (Medical Marijuana Inc.), Aurora Cannabis, CBD Life, Elixinol, and Joy Organics. These companies are focused on new product launches, increasing imports to meet the growing demand for cannabidiol in the country, and developing new partnerships with retail chains and pharmacies to strengthen their distribution network in the country. Moreover, an increase in the number of approvals granted by the Mexico government, supporting medical cannabis usage is further expected to drive the market for hemp CBD over the forecast period.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Mexico Hemp CBD Market Research Report
This report forecasts revenue growth in Mexico and provides an analysis of the latest industry trends in each of the sub segments from 2014 to 2025. For the purpose of this study, GVR has segmented the Mexico hemp CBD market report on the basis of distribution channel and end use:

Distribution Channel Outlook (Volume, Kilos; Revenue, USD Million, 2019 - 2030)

 	
B2B
 	
B2C
 	
Pharmacies
 	
Online Store
 	
Retail Stores

End-use Outlook (Volume, Kilos; Revenue, USD Million, 2019 - 2030)

 	
Personal Use
 	
Personal Care & Cosmetics
 	
Skin Care
 	
Others

Food & Beverages

 	
Nutraceuticals
 	
Others

Our report discusses the selected leading companies that are the major players in the Mexico Hemp CBD industry:

 	
Aurora Cannabis
 	
ENDOCA
 	
Elixinol
 	
CV Sciences, Inc.
 	
CBD Life
 	
HempMeds
 	
JOY Organics
 	
Canopy Growth Corporation