What are the advantages of investing in the cannabis market?
Discover five important facts that will help you when investing your money in one of the fastest-growing sectors in Brazil and worldwide
Published on 07/10/2022
By João R. Negromonte
With the constant evolution of the cannabis sector, both in Brazil and elsewhere around the globe, it is likely that this market will grow in the coming years, especially its medicinal applications, which have been a reality in the country since 2015 and could contribute approximately US $15 billion to the economy in 10 years, according to a study conducted by the Brazilian Association of Cannabis Industries (Abicann).
>>> Join the Sechat WhatsApp group and be the first to receive news
Therefore, if you are an investor and are interested in learning more about the cannabis market, we have here five tips that can help you when investing your money in this ecosystem.
Positive points
1st Trust in science: Several studies already prove that cannabis can bring a series of health benefits, including treatment for diseases such as Parkinson's, Alzheimer's, Multiple Sclerosis (MS), epilepsy, among others. Knowing this, Brazil started its cannabis regulation based on science and medicine, which is relevant enough to foster the development of the agenda.
To prove this evolution, one just needs to look at countries abroad like the USA, Canada, Israel, and Uruguay, which already have more advanced regulations on cannabis and reap the benefits of this market every year with significant gains for their economies. According to a report by the consultancy New Frontier Data, in 2021, the formal market moved more than US $27 billion just in the United States.
2nd New compounds: Another point worth attention is the new applications of cannabinoids such as Cannabigerol (CBG), Cannabinol (CBN), and delta 8 tetrahydrocannabinol (▲-8-THC), relatively new substances for the pharmaceutical industry that, in the eyes of an investor, could become a good business opportunity.
>>> Join the Sechat Telegram group and be the first to receive news
3rd Anvisa's endorsement: With the National Health Surveillance Agency (Anvisa) behind the regulations for the use of cannabis-derived medicines, both the national and international markets will have the agency's support to commercialize their products safely and smoothly. Furthermore, Brazilian products would have easier access to other markets for this reason.
4th Agricultural potential: Another positive point for Brazil in this market is that the country has a high agricultural potential and an ideal climate for the cultivation of any plant, with biomes ranging from semi-temperate to tropical, levels of insolation, and abundance of water, which would facilitate the national production of cannabis. Not to mention that the country has continental dimensions, which favors large-scale cultivation.
5. New industries: Recently, new sectors have started to show interest in the cannabis universe, such as the veterinary, dental markets, and the construction industry, for example, which expands the range of opportunities for the country.
Therefore, if you are looking to better understand the cannabis market and want to learn about business opportunities in this ever-growing sector, keep following Sechat on social media.
