Cannabis is an increasingly relevant topic worldwide. With growing acceptance and regulation, it has become a promising industry for businesses.. Although the sector still faces legal challenges in many countries, Brazil presents a growth scenario, particularly in the medical cannabis market. This can be a strategic sector for players looking to explore new business opportunities.
Understanding Brazil's cannabis sector and its regulations is crucial for those aiming to capitalise on these opportunities.
The legal cannabis market is expected to reach a valuation of $58 billion (approximately R$290 billion) by 2028, according to data from BDSA, a prominent research firm specialising in this field. This growth is anticipated to be driven primarily by U.S. purchases, but international markets, including Brazil, are also poised to play a significant role.
The growing demand for cannabis-derived products, particularly for medicinal purposes, presents an excellent opportunity for companies in the sector to expand their business. This is because increasingly favourable regulations in several countries, combined with greater acceptance by the public, unlock significant potential for investment, including in Brazil.
Cannabis is a pivotal topic in Brazil's legislative discourse. Despite the continued prohibition of the plant's cultivation for recreational purposes, the use of cannabis for medicinal purposes is gaining ground because of regulations aimed at guaranteeing safety and market control. In November, the First Section of the Supreme Court of Justice (STJ) unanimously authorised the cultivation of Cannabis sativa with low levels of psychoactive substances, strictly for medicinal purposes. Nevertheless, this decision is still subject to appeal and requires regulation by the National Health Surveillance Agency (Anvisa) and the Federal Government, which will have six months to define the rules.
Anvisa agency has been engaged in the process of regulating the use of cannabis-based products in Brazil, with a particular focus on cannabidiol (CBD), a substance that has been recognised for its therapeutic properties. Collegiate Board Resolution (RDC) No. 327/2019 establishes the regulatory framework governing the commercialisation and prescription of medicinal cannabis products, while RDC No. 335/2020 regulates the import of these products, thereby facilitating access for Brazilian patients.
Although cultivation and industrial use still face legal challenges, medical cannabis in Brazil is growing, especially in the pharmaceutical sector and in the import of products, highlighting the potential for expansion in the national market.
In 2023, the medical cannabis market in Brazil was estimated to be worth approximately R$700 million, according to the Kaya Mind Anuário da Cannabis Medicinal no Brasil 2023, representing a growth of 92% on the previous year.
The expansion of the market is attributable to the growing recognition of the therapeutic value of CBD in the treatment of conditions such as epilepsy, chronic pain, anxiety, Alzheimer's, and Parkinson's disease. The sale of cannabis-based products in pharmacies increased by over 100% in 2023, reaching a turnover of $150 million, according to data from the Brazilian Cannabinoid Industry Association (BRCann).
It is evident that the circumstances are favourable and presents a valuable opportunity for those engaged in the health and wellness sectors, as well as for those considering an investment in the distribution of cannabis-based products.
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