No one sees the marijuana boom: Can this Latin American country become a global leader?

By Javier Hasse by El Planteo

Ecuador Fastly becoming a key figure in the non-psychoactive and industrial hemp industries. The market has shown steady growth since the start of regulations in 2019, driven by favorable climatic conditions, clear regulations and growing international demand. With revenue expected to be $17 million by 2025 and exports are already underway, the country positioned itself as one of the region’s rising economies.

A growing market

The Ecuadorian marijuana and non-psychoactive marijuana market has expanded significantly. According to data from the country’s cannabis and cannabis industry cluster, the industry earned $7.2 million in 2023 and is expected to more than double in 2025.

Currently, more than 705 companies operate in the industry, mainly in Guayas, Imbabura and Pichincha. In addition, 2,277 hectares (5,626 acres) of farming have been authorized, although not all are actively planted. Key challenges remain, especially the density of financing and active crops.

Ecuador’s international footprint

One of the biggest drivers of industry growth is exports. Ecuador has been delivering biomass to the United States since December 2023 and to Iceland and France. This expansion comes after an 80% increase in international demand in 2024, resulting in a 40% increase in production license applications.

according to Eduardo MongeThis is an executive of the Industry Trade Association, “We export about one or two containers to the United States every month.” These exports consolidate Ecuador’s position as a key production center in the international market.

Employment impact

The industry is also promoting job creation. So far, it has generated 30,000 direct jobs and 144,000 indirect jobs. This job boom is driven by product diversity, including cosmetics, supplements and food.

But despite the promising number, there are challenges. In approved areas, there is still a gap between employment potential and actual farming density. According to Monge, the most popular licenses are licenses for CBD medicinal cultivation, fiber industrial hemp and final product processing.

Competing in the Latin American market

Ecuador is developing rapidly compared to other Latin American countries. Despite Uruguay and Colombia establishing strong regulatory frameworks and attracting significant investments, Ecuador stands out in its ideal climate conditions and low production costs. Unlike Mexico where marijuana regulations face political obstacles, Ecuador has successfully implemented a clear legal framework in a relatively short period of time.

Future prospects

Although growth is obvious, the next challenge is to consolidate progress and maximize export opportunities. Key steps include:

• Improve access to financing
• Encourage authorized hectares of farming
• Enhanced export infrastructure

Ecuador is at a turning point. If the industry maintains its growth trajectory and overcomes existing barriers, the country could become the leading non-psychoactive cannabis in Latin America.

Photos by Shutterstock

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