The global expansion of the CBD industry is still in full force. New opportunities abound in various countries and regions of the world as widespread mainstream acceptance turns to commercial and medical potential. This is obviously exciting for both those producing CBD products and the public who demands more and more offerings. But these enticing possibilities can slip away quickly if not taken advantage of. The worldwide ascension of the CBD industry creates more competition in the sheer number of companies and products currently available.
One huge market that has been left out of the global CBD industry is Brazil. Being the largest country in Latin America with over 210 million people (approximately 50% of the continent’s population) the potential for a booming CBD market is obvious, if only it were as easy to approach as other regions. Brazil held strong against commercialized cannabis sale and use of any kind for some time, but recent developments have created the possibility for a huge CBD import market.
The vast potential that lies in wait in this South American powerhouse is still governed by rules and regulations against domestic production and distribution of cannabis for CBD – laying the foundation for importers outside of the country to take full advantage of a giant consumer base lacking a local supply. What this means is that the only way for CBD products to be sold in Brazil is if they are imported. And that simple fact opens the door for any CBD company to tap into the Brazilian market and its imminent boom. If you’re aware of it and know how to work with the current regulations in place, that is.
What You Need to Know About the Brazilian CBD Market
It’s not going to be as easy as shipping your products to South America and watching the profits role in. Even though Brazil is poised to be potentially the largest CBD import market in the world, that’s right – the world. If you don’t know how to have your products comply with ANVISA regulations, you’ll have a tough time getting products on shelves and available for sale in the first place. ANVISA is the National Sanitary Surveillance Agency of Brazil, basically the FDA equivalent in the country and it holds the key to any potential CBD importing success.
ANVISA passed a resolution in late 2019 that kept domestic cultivation of medical cannabis in Brazil but allowed the distribution of imported CBD products. This is the golden key that opens up the door to so much importing potential. If you are able to comply with the ANVISA regs, you stand a chance to really do well with your CBD products in Brazil. But as I said before, it’s not a wide-open market, ripe for the picking. You absolutely must follow the regulations if you hope to profit.
Some things you need to know about the Brazilian CBD import market and its regulations:
- Extracts are the only allowable form of CBD (or cannabis, in general) in the country. Flower or any type of plant matter is strictly prohibited. This means you need to have your extraction completed before importation. Further processing to turn the extract into other products can occur in Brazil, but the process of turning plant material into extract needs to occur prior to import.
- CBD products need to be under 0.2% total THC in order to be made widely available for sale. Anything over this 0.2% limit will only be allowed for use by the terminally ill or anyone else in very poor medical condition. If your goal is mass sales and the success that follows, you need to keep CBD extracts and products at or under this limit.
- You’ll also need to have GMP standards that are certified by ANVISA. GMP stands for good manufacturing practice, and if you didn’t know that before reading this, you’re almost certainly not ready to take advantage of the global CBD market. Make sure that your company or facility adheres to these practices throughout your production chain in order to access the Brazilian market. They are being strict in this regard and it’s not worth messing around with. You’ll also want to have good practices and documentation in place for the distribution and storage of CBD products to keep Brazilian regulators satisfied as well.
Public and professional perception of CBD in Brazil is still a mixed bag. Doctors and other medical professionals are still somewhat leery of using it as a treatment or prescribing its use to patients. But if the rest of the world is any indication, this will soon be changing as public opinion and world-wide acceptance shifts the tide of conservative attitudes on cannabis.
The regulations might sound strict but in reality, if you want access to a vast market, it’s more than worth making any necessary adjustments. The largest country on a continent not allowing domestic production of a hot commodity while allowing its import should set off the profit alarms of any company in the CBD industry looking to make a global imprint. It’s too good of an opportunity to ignore and Brazil just might turn into a CBD importer’s dream.