European ‘cannapreneurs’ are tapping in the potential of legal weed and, if a recent report from prohibition partners is anything to go by, the continents could very well become the biggest global market on the planet by 2024.
Prohibition Partners is a provider of analysis and insights for the global cannabis market. Based on its most recent analysis of Europe’s cannabis industry, the market could be worth £123 Billion by 2028.
“Cannabis is slowly but surely entering new European markets,” said analysts from Prohibition Partners. The report suggests that broad legislation across much of North America has stimulated a change of opinion on cannabis in Europe.
Recently published data from Prohibition Partners shows that more than €500 million (£427 million) has been invested in cannabis investments throughout the European Union, which has grown more in the past year than the last six combined!A report published by Brightfield Group – a leading analytics and market research firm for the cannabis industry – suggests that Europe’s medical cannabis market may grow to £6.1 billion by 2023.
Back in 2018, the market was valued at £242 million less than the value of the CBD market, which is estimated to grow from £243 million in 2018 to £1.3 billion by 2023.Plus, with the European Union (EU) and the World Health Organization (WHO) both supporting a resolution to improve research and patient access to medical cannabis, a victorious discussion “could lead to a recommendation on its legal status.
There have been many developments in Europe’s cannabis market as of late. For example, medical cannabis will be cultivated for medicinal purposes on vast boglands in Ireland, Luxembourg’s health minister declared in mid-2019 that cannabis production and consumption will be legalized for residents within the next two years, and a joint partnership was recently announced between European Cannabis Holding (ECH) and British company Miller & Miller Chemicals Ltd. The collaboration will see ECH and Miller provide cannabis markets in France, Germany, Italy and Spain with a streamlined end-to-end system called Astral Health.
If that wasn’t enough to make you realize the potential of Europe’s cannabis market, let’s take a look at some other factors pointing to the possibility of a legal weed market transpiring EU-wide:
Forecasts Look Promising – Insights and analysis for the European medical cannabis market suggest that the industry could top £6 billion by 2023; growing at a compound annual growth rate (CAGR) of 83% between 2018 and 2023. Plus, with the European CBD market anticipated to reach £1.3 billion per year 2023, it is clear that the CBD market “has gotten a significantly stronger foothold across European states than has medical cannabis,” according to Brightfield Group’s analysts. Market growth could soar at a CAGR of 42% during the forecast period.
Key Movements Made by the EU and WHO – Although the CBD market throughout Europe is still in its nascent stages, the Brightfield Group report highlighted significant milestones that were recently accomplished by both the European Union (EU) and the World Health Organization (WHO). In January 2019, WHO recommended rescheduling cannabis and eliminating CBD from Europe’s list of controlled substances. The EU supported the initiative and even went as far as to legalize CBG – a different non-psychoactive cannabinoid. Another key movement was when the EU’s European Food Safety Authority (EFSA) announced that it would contemplate allowing the use of CBD in food supplements; the supplements are to contain no more than 130 mg per daily intake. A decision is yet to be made, but its announcement indicates progress towards EU-wide acceptance of cannabis-based medicines like CBD.
Portugal is Emerging as a Top Medical Cannabis Distribution Hub – Two major cannabis production Giants in Canada have invested in cultivation facilities based in Portugal. Those companies are Aurora Cannabis and Tilray. Why Portugal? According to the CEO of Tilray, Brendan Kennedy, production costs are significantly lower than other locations. The company’s CFO, Mark Castaneda, said in a 2019 Q4 conference call that Tilray’s cultivation facility in Portugal will be used “to meet demand from countries around the world.
German Medical Cannabis Market Expected to Reach $2.7 billion by 2023 – Aside from North America, where 33 US states have legalized cannabis for medical purposes and Canada has legalized the plant in its entirety, Germany ranks as the next big international medical cannabis market.
In fact, numerous leading pot producers in Canada are already supplying medicinal-grade cannabis to Germany’s market; Aurora Cannabis, Canopy Growth and Tilray are a few examples. Based on analysis published by Brightfield Group, Germany’s medical cannabis market will inflate from (£56 million in 2018 to £2 billion by 2023.
Two European Countries are Contemplating Recreational Cannabis Legalization – With a recreational cannabis scene having already been ignited across Canada and 11 US States, there’s no wonder why North America is stealing all the limelight for legal weed. Then again, two European countries could soon follow suit – the Netherlands and Spain. Cannabis tourism hotspot Amsterdam is the capital of the Netherlands and boasts a well-established coffee shop industry. Over in Spain, cannabis has been decriminalized and consumers can freely blaze up at social clubs located in Barcelona, Basque, Catalonia and Navarra. Brightfield Group’s team of analysts foresee exponential growth in both of the European countries if cannabis is legalized for adult use.
Some Other Things to Note About European Cannabis Market Growth At the current time, Austria and the UK boast the largest CBD markets in Europe. Analysts from Brightfield Group project that, within the next three years, CBD markets in Austria and the UK will soar to £105 million and £337 million, respectively. Germany looks set to take over by 2023, however, what with CBD sales in the European country on-track to harvest £463 million in revenue; intense growth when compared to £30 million in CBD sales for 2018.
Brightfield Group analysts say that Germany will likely be dominated by France, which operates the fastest-growing medical cannabis market in all of Europe. Moreover, with the Netherlands anticipated to reap close to £1 billion by 2023, there’s a pretty green foundation spread across much of the EU that, if well cared for, could sprout into something lush.
Written and Published By Bethan Bee Rose In Weed World Magazine Issue 145