Cannabis / February 2023

The cannabis sector is undergoing great development in the areas of regulation, mergers and acquisitions, research and development of new products worldwide, as a result of changes in national legislation that occurred in the 21st century and that support the global growth of the business today.

Latin America is one of the territories with the highest expected growth in this industry. In recent years, there has been a partial legalization or decriminalization of cannabis cultivation in the region.

Uruguay has one of the most developed cannabis cultures in the world, being a pioneer in the legislation of the plant for its various uses. Since 2013 it has regulated production, commercialization and consumption.

Although there is still a great deal of room for development at the local level, the sector currently generates more than 1,000 direct jobs, which increase significantly during the harvest season (transplanting and harvesting). More than 120 companies are linked to the sector, of which more than 80% are MSMEs.

The development of the cannabis industry in Uruguay is export-oriented, with recent investments in the medical cannabis sector. In 2019 it achieved its first export and the following year saw external sales exceeding US$7.5 million.

This report details the development of the business at global, regional and local levels, delving into the latter point based on available licenses: cultivation, industrialization and research.