1. introduction
The cannabis market in Brazil is at a crucial turning point, full of possibilities that could redefine not only the economy, but also public health, agribusiness and the country’s social landscape.
We are on the verge of a green revolution that transcends the medicinal aspect, reaching sectors such as industry, cosmetics and food, with an economic potential that is still little explored. The advance of regulation, driven by landmark decisions in 2024 by the Federal Supreme Court (STF) and the Superior Court of Justice (STJ).
In this article, we’ll take you on a journey that explores everything from the historical context of cannabis regulation to the current panorama of the market, including financial figures, the number of patients, companies operating and the fundamental role of associations.
In addition, we will outline projections for the future, showing the expected impact on the Brazilian economy, job creation and innovation. Get ready to discover how Brazil can become a global player in this booming sector and why now is the right time to be part of this transformation.
2. The Historical Context of Cannabis Regulation in Brazil
2.1 The First Prohibitions and Drug Policy (19th century – early 21st century)
The history of cannabis in Brazil dates back to the colonial period, when the plant was used for industrial purposes, especially in the production of fibers. However, in the 20th century, cannabis became criminalized, influenced by international anti-drug policies. Brazil followed a prohibitionist approach, culminating in the 2006 Drug Law (Law No. 11.343), which toughened the penalties for trafficking, but brought about the first differentiation between users and traffickers.
2.2 Advances in Medicinal Regulation (2015 – 2024)
The initial milestone for the regulation of medicinal cannabis in Brazil was Collegiate Board Resolution (RDC) No. 3 of 2015, which removed cannabidiol (CBD) from Anvisa’s list of prohibited substances. In 2019, RDC No. 327 authorized the production and marketing of cannabis-based products for medicinal purposes, a significant step forward for patients and healthcare professionals.
In 2024, two landmark decisions boosted the debate: the Federal Supreme Court (STF) moved to decriminalize possession for personal use, and the Superior Court of Justice (STJ) ruled that Anvisa must regulate the cultivation and marketing of cannabis within six months. These decisions did not occur in isolation, but were a reflection of a growing social, scientific and economic demand for changes in the country’s drug policy.
The STF’s decision was motivated by overcrowding in the Brazilian prison system, where a significant part of the prison population is made up of people imprisoned for crimes related to the possession of small amounts of drugs. The court recognized that criminalizing possession for personal use does not effectively contribute to reducing consumption and, on the contrary, perpetuates social and public health problems. The STJ’s decision, which obliges Anvisa to regulate cannabis cultivation, reflects the need to create a clear and safe regulatory environment for patients, health professionals and entrepreneurs, as well as combating the illegal market and promoting access to quality treatments.
2.3 Current Legislative Movements
Bill 399/2015, which aims to regulate the cultivation of cannabis for medicinal and industrial purposes, is one of the main initiatives currently before Congress. The proposal seeks to amend Law No. 11.343/2006 to make it possible to sell medicines that contain extracts, substrates or parts of the Cannabis sativa plant in their formulation.
3. The Current Cannabis Market in Brazil
3.1 Economic Dimension and Sector Data
The medical cannabis market in Brazil has shown consistent growth, even in a still restrictive regulatory environment. The sector’s current turnover is estimated at between R$21.9 million and R$49.9 million annually, according to the Kaya Mind report. This figure reflects both the increase in demand for cannabis-based products and the growth in the number of medical prescriptions and public awareness of the plant’s therapeutic benefits.
In addition to revenues, Brazil already has a significant business structure in the sector. There are currently 153 active companies operating in various areas, including the import, distribution and marketing of cannabis-based products. The market offers around 439 products available for import, including oils, capsules, sprays and other formats that meet different therapeutic needs.
3.2 Patient Profile and Medicinal Demand
The number of patients being treated with medical cannabis in Brazil has grown significantly in recent years. It is estimated that more than 50,000 patients are currently being treated with cannabis-based products. This number reflects both the increase in medical acceptance and the greater availability of information for the general public.
The potential for expansion is even more impressive. According to estimates by Kaya Mind, Brazil could reach up to 6.9 million patients who could benefit from medical cannabis treatments. This audience includes people with conditions such as refractory epilepsy, chronic pain, multiple sclerosis, anxiety disorders, among others.
3.3 The Role of Patient Associations and National Industry
Patient associations play a key role in democratizing access to medical cannabis in Brazil. Organizations like AMA+ME have been essential in ensuring that patients with complex medical conditions can access quality treatments, even in the face of regulatory and economic barriers.
These associations not only promote access, but also work to raise awareness in society, train health professionals and advocate for public policies that expand regulation. In addition, the growth of the domestic industry, with the emergence of Brazilian brands focused on research, development and innovation, demonstrates Brazil’s potential to become a leader in the medical cannabis market.
4. The Economic Potential of Cannabis in Brazil
4.1 Market Growth Projections
The projections for the cannabis market in Brazil are very promising, especially considering the potential for expansion after broader regulation. According to the Kaya Mind report, the sector has the capacity to generate up to R$9.5 billion in the fourth year after full regulation. This growth will be driven not only by increased demand for medicinal products, but also by the diversification of the use of cannabis in industrial, cosmetic and food sectors
This growth potential is anchored in factors such as the increase in the number of patients treated with medical cannabis, the emergence of new companies in the sector and the development of technologies for cultivation and production. Brazil, with its favorable climate and one of the largest agricultural areas in the world, is strategically positioned to become one of the main global players in cannabis production.
4.2 Generating Jobs and Business Opportunities
Cannabis regulation has the potential to generate a significant number of jobs, both formal and informal. Estimates indicate that the sector could create hundreds of thousands of new jobs in various areas, including cultivation, research, product development, distribution, sales and support services
The economic impact goes beyond generating direct jobs. The cannabis production chain includes everything from farmers and scientists to marketing, logistics and information technology professionals. In addition, the sector can also boost entrepreneurship, with the emergence of start-ups focused on innovation and the development of new cannabis-based products.
4.3. Industrial Hemp: An Emerging Economic Pillar
Industrial hemp represents a significant economic opportunity for Brazil. Used in a wide range of products, from fabrics and building materials to food and cosmetics, hemp has the potential to generate up to R$4.9 billion in sales. In addition, it is estimated that the sector could generate around R$ 330 million in tax revenue, making a substantial contribution to the national economy.
Hemp cultivation also offers environmental advantages, such as the ability to sequester carbon from the atmosphere, improve soil quality and reduce the need for pesticides and herbicides. This makes it a sustainable crop, in line with global demands for greener and more responsible agricultural practices.
5. The Future of the Cannabis Market in Brazil
5.1. The Impact of Expanded Regulation
The future of the cannabis market in Brazil will depend directly on the evolution of regulation. Expanding access to medical cannabis, regulating cultivation and opening up industrial use of hemp will create an environment conducive to sustainable growth in the sector. This new scenario will allow the development of a robust production chain, which will benefit everything from small farmers to large industries, promoting economic inclusion and technological innovation.
In addition, increased regulation could attract national and international investment, stimulating the creation of new businesses and strengthening existing companies. The positive impact will extend to areas such as scientific research, public health and the development of sustainable technologies, consolidating Brazil as a leading player in the global cannabis market.
5.2 Global trends and opportunities for Brazil
Brazil can benefit from the lessons learned in other countries that have already regulated the cannabis market, such as Canada and Uruguay. In Canada, for example, the legal market has generated billions of dollars and thousands of jobs, showing the economic potential of cannabis when well regulated. Uruguay, a pioneer in legalizing recreational use, has demonstrated how effective regulation can reduce the illegal market and improve public safety.
Adopting international best practices and adapting them to local realities will be essential for the success of the sector in Brazil. This includes the creation of public policies that encourage research, the training of qualified professionals and the development of legislation that promotes safety, quality and access to cannabis products.
5.3 Challenges and opportunities for Brazil
Despite the potential, Brazil faces significant challenges, such as resistance from conservative sectors, a lack of accurate information about the benefits of cannabis and the need for clear and efficient regulation. The stigma associated with the plant is still an obstacle to public acceptance and the advancement of more progressive policies.
However, the opportunities outweigh the challenges. The cannabis market is growing globally, and Brazil has favorable climatic and economic conditions to stand out in this scenario. The positive impact on public health, with increased access to effective treatments, and on the economy, with job creation and tax collection, are strong arguments for boosting the regulation and development of the sector in the country.
6. Conclusion
The cannabis market in Brazil is at a turning point. The trajectory so far, marked by significant advances in regulation and public debate, demonstrates that the country is ready to take the next step towards a more structured and prosperous sector. We have seen that cannabis is not only a health issue, but also an economic opportunity capable of boosting job creation, tax collection and innovation in various sectors, such as medicine, industry and agriculture.
Brazil has all the conditions to become a leading player on the international cannabis scene, taking advantage of its favorable climate, agricultural capacity and robust domestic market. The transformative potential of regulation goes beyond the economy, positively impacting public health, safety and the well-being of society. The future of the Brazilian cannabis market is promising and it is in our hands to build a sustainable, inclusive ecosystem based on international best practices.
Special Thanks
We would especially like to thank Kaya Mind, whose expertise and materials were fundamental to the preparation of this article. Most of the information and data presented here was taken from studies and reports developed by the company, which stands out as a reference in market intelligence in the cannabis sector in Brazil. To find out more about Kaya Mind’s work, visit: www.kayamind.com
Bibliographical references
- Kaya Mind (2024). Yearbook of Medicinal Cannabis in Brazil.
- Kaya Mind (2024). Medicinal Cannabis Report.
- Kaya Mind (2021). Executive Summary Cannabis Economic Impact Report.
- Kaya Mind (2024). Hemp in Brazil.
- National Health Surveillance Agency (ANVISA) (2024). Resolutions and Regulations on Medicinal Cannabis.
- Chamber of Deputies of Brazil (2024). Bill 399/2015 and Legislative Updates.
