This week Mexico’s emerging legal hemp industry passed a major milestone, with Mexico’s Federal Commission for the Protection against Sanitary Risks (COFEPRIS) reportedly authorizing the cultivation of low-THC hemp plants (less than 1% THC content).
The announcement came in the form of a letter from the regulatory entity to Semillas Endemicas Mexicanna SA de CV, as originally reported by El Planteo.
“The official document acquired by El Planteo, dated November 17, 2023 but delivered to the company just a few days ago, details the conditions under which Semillas Endemicas Mexicanna SA de CV can operate. The permit includes the import of seeds, the processing of hemp for the extraction of cannabidiol (CBD), and the marketing of cannabidiol oil as long as the THC content in the plants does not exceed 1%.” El Planteo stated in its coverage.
“The requested health authorization must guarantee that the plant produces concentrations equal to or less than 1% of THC and under the monitoring, control and safety conditions that the competent authority deems appropriate to protect health and public order.” the regulator’s letter reportedly stated.
According to an April 2022 market analysis, New Frontier Data determined that “Mexico’s total 2021 imports of hemp fiber were worth $120,000, or 25 metric tons (MT). Among those, imports from the United States accounted for 63% of the total of the tariff group, with France second at 29%.”
“In 2020, Mexico’s CBD market was valued at $9.2 million.” New Frontier Data stated. “Expectations over the next seven years are for the market to reach $675 million.”
For many decades, cannabis produced in Mexico was smuggled into the United States. However, demand for unregulated Mexican-grown cannabis has subsided in the U.S. as more states have permitted regulated sales, and that trend is reflected in the latest U.S./Mexico border seizures statistics.
According to data published on the United States Customs and Border Protection website, federal law enforcement agents seized a record low 61,000 pounds of cannabis at the U.S./Mexico border in 2023.
“The total represents a 29 percent decline from 2022 and a 98 percent decline in seizure activity since 2013, when the agency reported interdicting more than 2.4 million pounds of cannabis.” the National Organization for the Reform of Marijuana Laws stated in its initial coverage.
The global cannabidiol (CBD) market was worth an estimated $7.6 billion in 2023 according to a previous market analysis by Market.us, and will climb to a projected $36.6 in value by 2033.
“Between 2023 and 2032, this market is estimated to register the highest CAGR of 27%.” the researchers stated.