The size of industrial hemp area in Latin America and the Caribbean is estimated at approximately 10,000 hectares in 2023 and is projected to reach 50,000 hectares by 2030. Currently, hemp/CBD products commercialised in Mexico, Bahamas, Bermuda, Antigua and Barbuda, Aruba, Trinidad and Tobago, Colombia, Ecuador, Costa Rico, Peru, Paraguay, Chile, Uruguay, Argentina. In the second edition of the Latin America and Caribbean Cannabis Report – produced by London-based advisory group Prohibition Partners – the cannabinoid-based products market is projected to reach over $500 million by 2024 with over 50% of CBD products sales.

Latin America and the Caribbean Hemp CBD Industry

Paraguay started growing hemp in 2019 and is already the largest producer and exporter of hemp in Latin America and one of the top three global leaders according to Prohibition Partners.

In October 2019, Paraguay passed a law allowing for the cultivation of hemp up to 2 hectares per family, with estimates from Paraguayan authorities of about 25,000 families interested in the business.

In August 2020, Paraguayan president Mario Abdo Benítez signed a decree that places hemp as a ‘national interest crop’.

In 2020, five companies were authorised to cultivate industrial hemp in Paraguay: Evonia, Alquimia, International Market, Healthy Grain and Irupe. In September 2020, Healthy Grains S.A. announced the first export of hemp food in South America to the US, exporting 500 kilograms of hulled seeds, 350 kilograms of powder and 150 kilograms of oil.

It is estimated that in 2022, 350-400 individual farmers have planted about 2,500 hectares of hemp in Paraguay, mainly for grains and biomass, also some for fiber.

Currently, hemp is grown in 14 of Paraguay’s 17 provinces. More than 80% of the hemp produced is exported to the USA, Canada, Australia, the Netherlands and the UK. According to the Paraguayan Industrial Hemp Chamber, Paraguay is the third-largest country in the world in exporting hemp-derived food and supplements to the European Union.

Latin America Hemp CBD Industry Infographics

Business Plan Sample for a Hemp Cultivation and Processing Business in Paraguay

Latin America Hemp CBD Business Plan Sample

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Our hemp/CBD financial models and business plan templates will help you estimate how much it costs to start and operate your own hemp/CBD business, to build all revenue and cost line-items monthly over a flexible seven year period, and then summarize the monthly results into quarters and years for an easy view into the various time periods. We also offer investor pitch deck templates.

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Latin America and the Caribbean Cannabis Markets