15/10/2024

Is it time to invest in cannabis? It depends on how quickly you want to see results.

You don’t have to be an experienced surfer to know that a wave has the right timing to take you to the shore. Those who anticipate, lose their timing. Those who are late, too. When drawing a parallel with the business world, we can say that this image fits very well with those who intend to invest in a new segment. As a cannabis consultant, I receive countless questions about the size of the market and whether it is worth investing in cannabidiol-based products in Brazil, especially in startups. After all, the discussion about the legalization of hemp cultivation for industrial and medicinal purposes is advancing in several government spheres and everything indicates that, within some time, the scenario may change in Brazil. If the question comes from an investor eager for short-term results, expecting a definitive yes or a definitive no as an answer, they will be frustrated. The subject has received a lot of attention around the world in recent times, with surprising results for investors in several countries. In Brazil, however, cannabis is still a topic surrounded by taboos, lack of knowledge and legal impediments. Therefore, investing is necessary, but it will take four or five years for the return to happen. Resilience is perhaps the most appropriate word in this scenario.

Some startups accelerated or incubated by our company are beginning to cross borders with us. This is the case, for example, in Uruguay, where The Green Hub recently opened an office. On their own, these startups would certainly have enormous difficulty advancing in this still incipient market.

Estimates indicate that 1.2 billion people suffer from diseases treatable with cannabis-based medicines worldwide. According to the report Cannabis – Research, Innovation and Market Trends, recently released by The Green Hub with data from Clarivate Analytics and Derwent, the global legal cannabis market is estimated to be worth US$55.3 billion in 2024. Of this total, US$824 million will circulate through Latin America – including Brazil. In other words, a universe of possibilities waiting to be explored. And, certainly, with a lot of innovation and technology involved!

Another positive aspect of undertaking a business in an embryonic market is the availability of investments. In Brazil, consumers have not yet been tested, and good entrepreneurs can use this fact to their advantage. Not to mention that we have many examples from other countries in more advanced stages of the market. In some, the strategies adopted worked, while in others the path was more tortuous. Thus, we have a very powerful benchmark in our hands.

Obviously, before investing in cannabis or any other sector, a lot of study and prior planning is recommended. It is important to look for those who are already operating in this ecosystem to understand the viability of the business, with an analysis of risks and potential. It is also worth remembering that we are not just talking about medicinal uses. Hemp, also called hemp, has more than 25 thousand industrial applications.

We all know that Italo Ferreira swallowed a lot of salt water before winning a gold medal in Tokyo. If you want to invest in a disruptive, innovative business with room for a lot of technological innovation, start now to observe the athletes already in training, the favorable wind and the formation of the best waves.

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