Mexico is one of the most exciting emerging cannabis markets in the world and we expect to see increased interest in the market from leading cannabis companies. A few months ago, we published an article on the Mexican cannabis market and received a lot of positive feedback from our readers.
After noticing the amount of interest in the Mexican cannabis market, we conducted due diligence on the operators that are focused on the emerging market. Based on our analysis, we determined that the market is wide open for companies to come in and grab market share and will monitor how the industry evolves over the next year.
Many analysts expected the Mexican cannabis industry to be a major market after former President Enrique Peña Nieto signed legislation to legalize medical cannabis in 2017. Since then, the government has failed to advance the industry and medical cannabis remains out of reach for many patients.
Although we are surprised with the amount of time it has taken for the Mexican cannabis market to advance, we believe the industry is reaching an inflection point. Last year, legislation was introduced that would allow private companies to sell cannabis to the public and the bill is expected to be implemented in the near future.
During the last two years, we have noticed a substantial increase in the number of companies that are focused on the Mexican cannabis market. A few years ago, Aurora Cannabis Inc. (ACB.TO) (ACB) announced plans to enter the Mexican cannabis market and this aspect of the business seems to have stalled. We do not blame Aurora Cannabis for the lack of execution and believe that the Mexican government is making the legalization of cannabis more challenging than it needs to be.
Earlier this week, PharmaCielo Ltd. (TSXV: PCLO) (PCLOF) issued an update on its ongoing Good Manufacturing Practices (GMP) compliance process and reported an important development as it relates to the Mexican cannabis market. The company announced that its joint venture with MINO Labs has initiated a GMP pre-audit process and we find this to be of significance.
The announcement comes after the Mexican government published a legal framework for the medical cannabis industry that included a provision for the import of medical extracts and products. PharmaCielo Mexico is well positioned to be an early mover on the Mexican medical cannabis market and is expected to become a primary supplier of premium medical extracts. The company expects to receive the GMP certification during the second quarter of 2021 and we expect this to be a catalyst for the business.
We believe the Mexican cannabis industry is not even in the first inning of a major growth cycle and this is a market that we are closely following. Over the next year, we expect to see large-scale US and Canadian cannabis operators expand into Mexico and this is a trend that our readers need to be aware of.
If you want to learn more about the companies like Aurora Cannabis or PharmaCielo which are trying to capitalize on the Mexican medical cannabis market, please send an email to [email protected] with the subject “Mexican Cannabis Companies” to be added to our distribution list.