The National Association of the Cannabis Industry (ANICANN) estimates that by 2021, the global marijuana market will be worth $31.6 billion dollars. Cannabis companies such as Veritas Farms Inc (OTCQB: VFRMD), Canopy Growth and Aurora Cannabis have shown impressive growth and profits over the last years.
Mexico has taken solid steps towards the legalization of cannabis, both in medicine and food supplements, as well as in new consumer products. It is only a matter of time before legislative changes will take place, and this will support a dynamic economic sector on various fronts, such as trade, industry and services.
With this, Mexico will put the foundations in place to create a friendly legislative environment for marijuana and will undoubtedly help bolster the country’s economy. Also, it will have the capacity to compete with countries such as Uruguay, Chile, Canada and the United States which are already very advanced in this sector.
For example, in the United States, cannabis companies have shown the huge potential of the cannabis market and Veritas Farms Inc. (OTCQB: VFRMD). is one of them. The company is a successful producer and distributor of CBD products. In Q2 2019 Veritas generated more than $2.9 million in total revenue and that is a 500% increase since Q2 2018. Their gross profits reached $1,523,413 and thanks to great results, they managed to reduce the liabilities by over $1.3 million. This growth has been driven by an aggressive plan to rapidly expand the company’s distribution network, which now includes over 4,000 retailers and partners.
According to the National Association of the Cannabis Industry (ANICANN) by 2021 it is estimated that the global marijuana market will have a value of $31.6 billion dollars. More and more international companies are showing interest in encouraging the domestic market.
Large companies that produce and distribute products derived from cannabis are betting on the incursion into new markets, including Latin America. However, the determining factor for them to achieve a successful business strategy based on the long term is the commercial alliances with strategic partners. For example, local partners that contribute to the execution of the business plan by contributing to a successful incursion into a new market.
There is already a history of foreign cannabis companies moving into new markets. Many major Canadian companies have taken steps to enter into the US market. This trend is beginning to play out again in Europe and it is likely that the same will begin to happen in Latin America. The money flooding in from foreign cannabis companies has also helped regional players, like Veritas, thrive in a rapidly growing environment.