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Global change in cannabis awareness creates growth opportunities for Latin America ()

London / Munich, March 25, 2021 – Signs of the times are good for the cannabis industry: As many significant developments in recent years have shown – let the German Bundestock in 2017 allow the use of marijuana from restricted cultivation for medicinal purposes. [1], The European Court of Human Rights in November 2020 ruled that CBD should not be classified as a drug [2], Or many observers believe that the inauguration of the new US President, Joe Biden, may accelerate the legalization of cannabis in the United States – the many beneficial properties of the cannabis plant are increasingly recognized by political and judicial decision makers. Rahul Bhushan, co-founder of the Rice ETF, sees the liberalization of the cannabis market in Europe and, above all, the growth of the medical market in Germany as promising opportunities for investors, but also for makers based in Latin America.

“Cannabis is experiencing a major shift in awareness in many regions,” Bhushan asserts. “This is evident not only in the hope of growing medicine in the use of the plant, but also in the treatment of epilepsy, anxiety or chronic pain, when looking at the rapidly increasing cannabis imports to Germany.” Fact: The amount of medical cannabis imported into Germany has grown rapidly over the past four years: from 1.2 tonnes in 2017 to 9.23 tonnes in 2020, according to data from the Federal Institute for Pharmaceuticals and Medical Equipment (BfArM) and the cannabis-specialized analytics agency New Frontier Data. The market price of a gram of medical cannabis is estimated at 4 to 7 euros, according to New Frontier Data. [3]

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Enormous potential in the healthcare market

“With the increasing support for cannabis by lawmakers, there is enormous and growing potential for medical use,” Bhushan continued. The increasing legal liberalization and medical use of cannabis in Germany not only has a precedent for other European countries, but also goes hand in hand with the growth of a large health market: New Frontier Data data show that physicians have only 24,000 legal health insurance policies in Germany from September 2020 to 24,000 Provided a total of 111 million euros worth of cannabis-based medicinal products – including 54 million euros worth of pure cannabis. Once the market for medical cannabis is fully established, the potential for use continues to grow: “Approximately 22 million people in Germany with chronic diseases and more than 100 million people across Western Europe could benefit in one way or another by being treated with cannabis,” Bhushan adds, based on figures from new frontier data. The prerequisite for this is the social acceptance of the use of the jute mill and the necessary legal basis in Europe and the producing countries.

Europe as a growth machine for Latin American manufacturers

“In the growing European cannabis market, there are long-term growth opportunities for manufacturers, including companies based in Latin America,” explains Rahul Bhushan. Both low production costs and favorable climatic conditions in the region could turn cannabis production and increasing European demand into Latin America’s growth engine. “Uruguay must insist that it sold four tonnes of cannabis between 2019 and 2020 and exported it to countries such as Germany and Switzerland. Notably, Colombia, as a manufacturing country, is still hampered by regulatory restrictions. Despite serious efforts by representatives of the cannabis industry, cannabis is being hampered by delays in production and approval special requirements. Thank you – it has proven to be possible, “said Bhushan.

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Investing in funds carries risks including liquidity, lack of dividends, loss of investment and liquidation, and should only be done as part of a diversified portfolio. These funds may be registered in one or more European jurisdictions or authorized for public distribution. Investors should carefully examine the terms and conditions for investing in any fund (or stock class) and seek professional investment advice before making any decision to invest in such fund (or stock class).

About Rice ETF

Established in 2019, Rice is the first European provider to issue ETFs exclusively on ETFs themes. The founding team, Rahul Bhushan, Stuart Forbes, Anthony Martin and Jason Kennard, have more than 35 years of experience working together on the topic of ETFs from the outset. Among other things, the group brought the first ETFs for robotics, cyber security and battery technology to the European market. In 2020, Rice ETF introduced a number of investment themes. The investment strategies of the respective ETFs have been developed in collaboration with research institutes and index providers. Rice ETF now manages more than $ 300 million. Rice ETF Ltd is the Authorized Representative of Altgate Advisors Limited (Firm Reference No. 763187), which is authorized and regulated by the Financial Conduct Commission, 5th Floor, 20 Fencher Street, London, United Kingdom EC3M 3BY.


The author provides information only here; There is no investment advice, recommendation or request to buy or sell investments. Investment transactions involve risks, so access to professional investment advisors is recommended. In this context, we would like to point out that the disclosure of stocks (including hot stocks or penny stocks), certificates, funds or warrants is sometimes associated with significant risk. The total loss of hired capital cannot be ruled out.

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