Uruguay: Latin American Leader in Legal Cannabis Exports
In 2025, Uruguay established itself as a key player in the global cannabis market, maintaining its pioneering status and enhancing its export capabilities by shipping 45 tons of cannabis.
During this year, Uruguay exported 45 tons of legal cannabis, generating $2.6 million in revenue. Of the total exports, 28 tons consisted of medicinal cannabis, 24.3 tons were non-psychoactive cannabis, and 3.9 tons were psychoactive.
Trade flow analysis reveals a specialization in markets. Low-THC flowers were primarily shipped to Switzerland and the Czech Republic, while high-THC cannabis—subject to stricter regulations—was mainly exported to Germany and Portugal.
How Did Uruguay Became a Leader in Cannabis Exports?
Uruguay's cannabis ecosystem comprises over 100 companies employing 700 people. This advancement is largely due to the country becoming the first in the world to legalize the entire marijuana supply chain in 2014. According to the latest report from the state agency Uruguay XXI, "66% of the workers operate in the interior of the country," where labor costs are notably lower.
In terms of physical volume, the low-THC seed segment dominated with 34 tons, primarily exported to Argentina. In value, medicines and pharmaceutical ingredients now account for 17% of total exports, with Brazil emerging as the most important trading partner for these complex products.
Social Impact and Foreign Investment in Legal Cannabis Production
Foreign investment plays a vital role in Uruguay's cannabis sector, accounting for 60% of employment in the industry. Currently, 15 companies have been authorized by the Ministry of Public Health for medicinal production, demonstrating a strong commitment to innovation.
The Institute for the Regulation and Control of Cannabis (IRCCA) has issued 14 research licenses, allowing the number of registered national cultivars at INASE to increase from 11 to over 40 varieties within a single year.
Uruguay in the Global Legal Cannabis Supply and Demand Landscape
On the international stage, Uruguay ranks as the world's fifth-largest cannabis producer, holding a 5.0% market share. It competes with giants like Canada (28.8%), the United Kingdom (19.2%), and Israel (11.5%).
In terms of demand, eight countries account for 90% of global cannabis trade. Germany leads the way with 36 tons (25% of the total), followed by the United Kingdom and Australia.
Uruguay's success relies on its capacity to meet the traceability and quality standards required by highly regulated markets. Additionally, it has experienced a sales revolution in the domestic market by marketing high-THC varieties.
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