Introduction
Brazil’s cannabis industry is undergoing a transformative phase, fueled by advancements in medical research, evolving regulations, and growing international interest. The medical cannabis market, already one of the top 10 globally, is projected to grow at a compound annual growth rate (CAGR) of 26% from 2024 to 2030, reaching a revenue of USD 204.4 million (approximately BRL 1.16 billion at an exchange rate of 5.68 BRL/USD) by 2030. If adult-use cannabis were legalized, the total market could potentially reach USD 1.5 billion (BRL 8.52 billion) by 2030, driven by Brazil’s large population and favorable climate for cultivation. This article explores the current landscape of Brazil’s cannabis sector, focusing on market size, regulatory developments, biotechnology advancements, international collaborations, and the role of medical cannabis associations.
Market Size and Potential
In 2023, Brazil’s legal cannabis market, primarily driven by medical cannabis, generated USD 40.5 million (BRL 230 million) in revenue. By 2028, the medical cannabis market alone is forecasted to reach USD 229 million (BRL 1.3 billion). Hemp-derived products, particularly CBD, accounted for the largest revenue share in 2023, while marijuana-based products are expected to grow the fastest during the forecast period.
If adult-use cannabis were legalized, Brazil’s market potential could expand significantly. Estimates suggest a total cannabis market (medical and adult-use) could reach USD 1.5 billion (BRL 8.52 billion) by 2030, driven by domestic demand, export opportunities, and Brazil’s agricultural capacity. With 80% of its farmland suitable for cannabis cultivation, Brazil could become a global leader in hemp and cannabis production. However, adult-use legalization remains speculative, as recreational cannabis sales are illegal, and no legislative timeline for legalization exists.
Key statistics highlight the sector’s growth:
- Patients: As of 2020, approximately 20,000 patients were authorized to import medical cannabis products, with monthly approvals exceeding 1,500 by August 2020. Recent estimates suggest patient numbers have grown significantly, potentially reaching 50,000 by 2025, driven by increased prescriptions and public health system integration.
- Licensed Companies: Around 30 products from various companies have valid licenses for manufacturing and sale under ANVISA’s regulations, with only one product (Mevatyl) classified as a registered medicine.
- Cultivation: Currently, only three organizations (patient associations Abrace, Cultive, and Apepi) are authorized to cultivate cannabis for medicinal purposes. Commercial cultivation is limited to industrial hemp (THC <0.3%) following a November 2024 court ruling.
Regulatory Developments
Brazil’s National Health Surveillance Agency (ANVISA) continues to shape the cannabis industry through progressive yet cautious regulations. In February 2025, ANVISA reviewed updates to Collegiate Board Resolution (RDC) No. 327/2019, streamlining the approval process for cannabis-based medicines and enhancing patient safety protocols. This resolution allows the manufacture, import, and sale of cannabis products with a simplified Sanitary Authorization, valid for five years, after which products must be registered as medicines. Products with up to 0.2% THC require a “B”-type prescription, while those with higher THC for palliative care need an “A”-type prescription.
A landmark development occurred in November 2024, when the Brazilian Superior Court of Justice (STJ) authorized the planting, cultivation, industrialization, and sale of industrial hemp (THC <0.3%) for medical and pharmaceutical purposes. The STJ mandated ANVISA and the Federal Government to establish regulations within six months, setting a deadline of May 2025. In February 2025, a court denied ANVISA’s request to extend this deadline, signaling urgency in regulatory progress. As of April 2025, ANVISA has not yet released final regulations for commercial hemp cultivation, but draft proposals are under review, focusing on seed importation, quality control, and preventing misuse. These regulations are expected to enable large-scale hemp production for CBD and industrial applications, such as textiles and food, while maintaining strict oversight.
Despite these advancements, cannabis cultivation for non-hemp purposes remains prohibited, except for authorized patient associations. Bills like PL 399 and PL 89/2023, which propose broader cultivation for medical purposes and public health system supply, are under review in Congress, but no approval timeline exists. ANVISA’s April 2025 proposal for cannabis regulation has faced criticism for favoring pharmaceutical companies over patient associations, reinforcing a concentrated market model.
Advancements in Biotechnology
Brazil’s agricultural research agency, Embrapa, is spearheading a 12-year research program to advance cannabis cultivation. Launched in 2025, the program aims to create a cannabis seed bank, develop varieties suited to Brazil’s tropical climate, and establish regional production hubs. Embrapa’s expertise in genetic improvement, previously applied to crops like cotton, positions Brazil to optimize hemp and cannabis yields. The program awaits ANVISA’s final cultivation regulations, expected by May 2025, to commence full-scale research.
In the private sector, DNA Soluções em Biotecnologia is pioneering cannabis research. The company’s successful 2024 court case legalized hemp cultivation for medical use, enabling it to apply for planting permits. DNA Soluções anticipates large-scale hemp production to supply CBD for pharmaceuticals and fibers for industries like paper and textiles, leveraging Brazil’s vast agricultural infrastructure.
International Collaborations
Global interest in Brazil’s cannabis market is surging. Canopy Growth Corporation, a leading Canadian medical cannabis company, has partnered with Brazilian entities to distribute CBD products, capitalizing on relaxed import regulations. Similarly, U.S. companies are exploring market entry, guided by experts like John Kaweske, former CEO of North Star Holdings. Kaweske’s expertise in regulatory compliance and strategic partnerships has facilitated collaborations, enabling U.S. firms to navigate ANVISA’s complex framework and import cannabis extracts for local manufacturing.
Imports remain critical, as domestic cultivation is limited. In 2024, ANVISA authorized 582 cannabis-based products for import, up from 11 in 2015, reflecting growing market access. Countries like the U.S., Canada, Switzerland, and Uruguay supply these products, highlighting Brazil’s integration into the global cannabis supply chain.
Role of Medical Cannabis Associations
Medical cannabis associations, such as Abrace, Cultive, and Apepi, are vital advocates for patient access and education. These organizations support over 14,000 patients, providing affordable CBD products and pushing for cultivation rights. Despite regulatory challenges, such as ANVISA’s 2020 attempt to halt Abrace’s “industrial” production, federal courts have upheld their operations. Associations collaborate with healthcare professionals and policymakers to promote medical cannabis benefits, contributing to its integration into Brazil’s public health system (SUS), which spent BRL 165 million (USD 29 million) on cannabis products from 2015 to mid-2023.
Conclusion
Brazil’s cannabis industry is on the cusp of significant growth, driven by a robust medical market, impending commercial hemp cultivation regulations, and global partnerships. The medical cannabis market is projected to reach USD 229 million (BRL 1.3 billion) by 2028, with potential for a USD 1.5 billion (BRL 8.52 billion) total market if adult-use is legalized. ANVISA’s forthcoming regulations, expected by May 2025, will unlock commercial hemp production, while biotechnology advancements and international collaborations position Brazil as a potential global leader.
John Kaweske is a seasoned cannabis industry executive with over a decade of experience in both the U.S. and Brazilian markets. As the founder and former CEO of North Star Holdings, a vertically integrated cannabis company in the United States, he led the development of large-scale cultivation and research facilities, including over 140 acres of outdoor cultivation and more than 500,000 square feet of indoor and greenhouse space. Kaweske has also founded and operated TweedLeaf, a medical cannabis provider and dispensary in Colorado Springs, Colorado, which has expanded from a single-site dispensary to multiple cultivation facilities and storefronts throughout Colorado. Additionally, he holds a U.S. patent for a medical cannabis authentication system, developed through his work with JW Colorado, LLC. Leveraging his extensive experience, Kaweske now offers consulting services to both U.S. companies seeking to enter the Brazilian cannabis market and Brazilian entities aiming to optimize their operations, providing guidance on regulatory compliance, cultivation best practices, and market entry strategies.
