Site icon [English] Kanna Coin

The Potential of Cannabis in Emerging Markets

Luis Quintanilha

Introduction to the Potential of Cannabis

The global cannabis market is projected to reach US$ 69.25 billion by 2029 (Mordor Intelligence, 2024), and emerging markets could be the biggest beneficiaries of this expansion. Countries that have regulated cannabis are already seeing an increase in job creation, technological innovation and tax collection.

But how can you benefit from this growth? In this article, we explore the impact of cannabis regulation, success stories from around the world and the opportunities that may arise in Brazil with the new regulation of the sector.

Conteúdo ocultar
1 Introduction to the Potential of Cannabis
2 1. Global Overview of Cannabis
2.1 1.1. Crescimento Econômico Mundial
2.2 1.2. Principais Mercados Emergentes
3 2. Economic and Social Impact of Regulation
3.1 2.1. Geração de Empregos e Receita
3.2 2.2. Desenvolvimento de Setores Industriais
3.3 2.3. Questão Cultural e Desestigmatização do Usuário
4 3. Case Studies: Before and After Regulation
4.1 3.1. Uruguai
4.2 3.2. Canadá
4.3 3.3. Colômbia
5 4. Prospects for Brazil
5.1 4.1. Situação Atual
5.2 4.2. Regulação do Mercado Brasileiro
5.3 4.3. Potencial Futuro
6 5. Challenges, Opportunities and Market Participation
6.1 5.1. Barreiras Regulamentares
6.2 5.2. Oportunidades de Inovação
6.3 5.3. Oportunidade de Investimento com o Token KNN
7 Conclusion
7.1 Bibliographical references

1. Global Overview of Cannabis

1.1. Crescimento Econômico Mundial

The global cannabis market is projected to reach US$69.25 billion by 2029, with a compound annual growth rate of 15.40% (Mordor Intelligence, 2024). This growth is being driven by the increasing demand for medical cannabis and the development of the hemp industry for industrial and pharmaceutical applications.

1.2. Principais Mercados Emergentes

Countries such as Colombia, Portugal, Morocco and South Africa have made progress in regulating cannabis, creating opportunities for export and strengthening their local economies (Le Monde, 2024). These nations are positioning themselves as production and research hubs, attracting international investment.

Brazil, for its part, has enormous potential to become a global power in the sector. With an ideal climate for growing cannabis, vast agricultural areas and consolidated expertise in agribusiness, the country has all the necessary factors to lead this market.

In addition, 2024 marked a crucial alignment between the STJ and the STF on the cannabis agenda, creating a favorable scenario for the regulation and opening up of this market in the country.

2. Economic and Social Impact of Regulation

The regulation of cannabis has been a watershed in the countries that have adopted this measure. In addition to the medical and industrial benefits, the economic impacts are notable, with GDP growth, increased tax collection and the creation of thousands of jobs.

In the first five years after legalization, several countries registered a significant increase in the sector’s turnover and employability, becoming a benchmark for other emerging markets, such as Brazil.

2.1. Geração de Empregos e Receita

In countries that have legalized cannabis, job creation has been one of the main benefits. In the USA, for example, more than 428,000 jobs have been created in the cannabis industry since the sector was regulated (Leafly, 2024). In Brazil, it is estimated that regulation could generate more than 328,000 direct and indirect jobs (Agência Brasil, 2024).

Country Year Regulation Revenue in the 1st Year Revenue in Year 3 Recipe in 5th grade
Canada 2018 US$ 1.2 billion US$ 4.2 billion US$ 7.1 billion
Uruguay 2013 US$ 40 million US$ 180 million US$ 320 million
USA (Colorado) 2014 US$ 700 million US$ 2.6 billion US$ 5.1 billion
Colombia 2017 US$ 150 million US$ 600 million US$ 1.2 billion
Portugal 2019 US$ 50 million US$ 250 million US$ 600 million
Germany 2024 US$ 500 million US$ 2.0 billion US$ 4.5 billion
Annual growth – +80% +60% +40%

The data above shows the economic potential that cannabis can generate in regulated markets. For Brazil, the expectation is that, with regulation, the sector could reach billion-dollar figures in the first few years, following the trend seen in other countries.

2.2. Desenvolvimento de Setores Industriais

Regulation is boosting sectors such as pharmaceuticals, textiles and cosmetics. Industrial hemp has applications in bioplastics, construction and sustainable fashion, adding value to emerging economies (Incentea Wide, 2024).

2.3. Questão Cultural e Desestigmatização do Usuário

The legalization of cannabis has also played a key role in destigmatizing its users. Countries that have regulated medicinal and industrial use have seen a change in public perception, reducing prejudice and encouraging the adoption of cannabis-based treatments (Sechat, 2024).

3. Case Studies: Before and After Regulation

3.1. Uruguai

Uruguay pioneered the legalization of recreational cannabis, implementing a government-controlled distribution model. Since then, the country has experienced a series of economic and social benefits.

The cannabis market generated an estimated $320 million in revenue by the fifth year of regulation, as well as creating more than 5,000 direct and indirect jobs.

Another significant impact was the easing of the prison system, reducing the criminalization of users and removing the market from illegal trafficking, which led to a 20% drop in drug-related crime rates (BBC News, 2024).

3.2. Canadá

Since regulation, the cannabis market in Canada has turned over billions of dollars, creating jobs and boosting tax revenues.

In five years, the Canadian cannabis industry has raised more than US$7.1 billion, generating approximately 150,000 jobs and contributing more than US$2 billion in federal and provincial taxes.

In addition, there has been a reduction in the illicit market, with more than 60% of consumers acquiring cannabis through regulated means. The country has also established itself as one of the largest exporters of medical cannabis in the world, expanding its operations to emerging markets such as Europe and Latin America (Government of Canada, 2024).

3.3. Colômbia

Colombia has adopted a regulatory model aimed at exporting medical cannabis, attracting foreign investors and positioning itself as a strategic player in Latin America. The country has seen significant growth in the sector, generating around US$1.2 billion in the first five years of regulation.

Colombian cannabis companies already export to more than 20 countries, and the sector employs more than 25,000 people, mainly in agricultural regions.

In addition, legalization has had positive social impacts, offering economic alternatives to communities that previously depended on the illicit cultivation of the plant, promoting the formalization of the market and reducing conflicts related to drug trafficking (Forbes, 2024).

4. Prospects for Brazil

4.1. Situação Atual

Brazil already has a growing medical cannabis market, with more than 672,000 patients using cannabinoid-based treatments (Sechat, 2024). In addition to medicinal use, it is estimated that thousands of Brazilians use cannabis as adults and recreationally, although without clear regulations. The clandestine market still generates billions of reais annually, highlighting the high demand for the product.

Currently, the country has more than 53 national producers registered with Kanna, who are leading the way in adopting good sustainable cultivation practices. Despite the lack of regulation, this group has been driving the development of a productive ecosystem that could quickly be formalized with appropriate legislation. In financial terms, medical cannabis already generates significant figures, with imports of cannabis-based products growing exponentially in recent years. If there is already this much economic movement in a market that is not yet regulated, we can imagine the impact that effective regulation would have on Brazil.

Brazil already has a growing medical cannabis market, with more than 672,000 patients using cannabinoid-based treatments (Sechat, 2024). The number of medical prescriptions has increased significantly.

4.2. Regulação do Mercado Brasileiro

The year 2024 brought two important milestones for the advancement of cannabis regulation in Brazil. The first was the decision by the Federal Supreme Court (STF), which established a criterion of up to 40 grams for carrying cannabis for personal use, promoting progress in decriminalization and reducing impacts on the prison system. This decision is of great importance in building a more rational approach to the use of the plant, keeping users out of the penal system and reinforcing public health policies.

The second major milestone was the decision by the Superior Court of Justice (STJ), which ruled that Anvisa has six months to present regulations for the cultivation and sale of cannabis in Brazil. This measure creates institutional pressure for the market to be formalized and for Brazil to start integrating the sector in a structured way, opening up space for new investments and economic opportunities.

With the STJ’s decision in November 2024, Anvisa will have up to six months to regulate the cannabis market. This measure could open doors to new investments and consolidate Brazil as one of the main markets for medicinal and industrial cannabis (Agência Brasil, 2024).

4.3. Potencial Futuro

Over the next two years, Brazil should make significant progress in regulating cannabis. The first major step will be regulation by Anvisa, which is expected to present a regulatory framework for the cultivation, production and distribution of medicinal and industrial cannabis in the coming months. This measure could unlock billions in investment and open up a new economic segment in the country.

In addition, a more in-depth debate is expected in the National Congress to create a definitive legal framework for cannabis, addressing not only the medicinal and industrial market, but also the issue of adult use and harm reduction policies. The example of other countries shows that clear and well-structured regulation can generate significant economic benefits, increasing tax collection and reducing the illegal market.

In this scenario, the KNN Token is positioned as a strategic opportunity for those wishing to enter the regulated cannabis market at an early stage. As a digital asset linked to the traceability and certification of the production chain, the KNN has great potential for appreciation as the sector expands and gains institutional recognition.

5. Challenges, Opportunities and Market Participation

With the regulation of cannabis getting closer and closer in Brazil, significant challenges and opportunities are emerging for different sectors of the economy. Regulatory progress opens doors to technological innovations, strategic investments and the active participation of society in this emerging market. However, the realization of these opportunities still depends on factors such as adapting the legal framework and overcoming institutional resistance.

5.1. Barreiras Regulamentares

Although the recent decisions by the STF and STJ represent progress, the implementation of the regulation still faces significant obstacles. Resistance from political sectors, lobbying by industries opposed to regulation and the need for an efficient tax model are all challenges that need to be overcome. International experience shows that a well-structured regulatory model can reduce bureaucracy and create a safe environment for investors and consumers (BBC News, 2024).

5.2. Oportunidades de Inovação

Cannabis regulation not only enables a new market, but also encourages scientific research, the development of new medicines and innovations in the production and distribution of medicinal and industrial cannabis. Advanced cultivation technologies, blockchain for tracking products and new methods for extracting cannabinoid compounds are some of the areas that could benefit from a formalized market. In addition, regulation opens up space for new players and startups to develop solutions that increase efficiency and transparency in the sector (Forbes, 2024).

5.3. Oportunidade de Investimento com o Token KNN

With a formalized market, the demand for traceability and transparency will be fundamental to guaranteeing security for consumers and investors. The KNN Token has emerged as an innovative solution by enabling decentralized certification of the cannabis production chain. As one of the first assets linked to the sector in Brazil, the KNN could increase in value as regulation advances and market confidence grows.

By investing in the KNN Token, participants not only have the chance to benefit from the asset’s appreciation, but also actively contribute to strengthening a sustainable and transparent market. As happened in regulated markets such as Canada and Colombia, the first investors and companies that bet on structuring the production chain reaped the greatest returns.

This is the ideal time to position yourself strategically and participate in the exponential growth of the sector in Brazil.

Conclusion

Cannabis regulation has boosted economies, generating jobs and innovation. Countries that have adopted clear rules have grown significantly and reduced the illegal market. Brazil is at a decisive moment to follow this path and consolidate itself as a global player.

Recent legal advances indicate that structured changes are on the way. With a regulated market, the country can attract billions in investment and strengthen its position in the sector.

The KNN Token represents a strategic opportunity for investors and enthusiasts who want to participate in this transformation and contribute to a sustainable and transparent market.

Bibliographical references

Exit mobile version