The European cannabis market is showing robust growth, with Germany and the UK leading the way. “Germany is the largest market in Europe, and we still see exponential growth every quarter,” says Anthony Traurig from CannIntelligence. “It’s going to remain the bellwether for cannabis in Europe.”

Germany leading the way, followed by the UK
That said, Germany also comes with complications. The latest debate centers on the proposed telemedicine bill. “We’re skeptical of its passage, at least in its current form,” Anthony explains. One coalition partner, the SPD, has already voiced opposition, and even within the conservative CDU there is pushback. “It seems very tenuous at best, and you have to question some of the motives behind the draft law,” he adds. The concern is that conservative resistance stems less from data than from fears of recreational use creeping into the medical market. A similar story played out in Poland, where the government banned telemedicine after seeing a sharp rise in patient numbers, leading to a 55% drop in prescriptions. “If something like that happened in Germany, it would be massive for the European cannabis market, but it’s unlikely in the current form.”

The UK continues to post steady growth, albeit at a slower pace than Germany. Much of this is linked to a greater focus on education: patients and doctors are becoming more familiar with the prescription process, and as Anthony points out, “Education takes time, but it’s indicative of the kind of sustained growth we’re seeing.”

Anthony Traurig

Spain and Portugal
In Portugal, a major police operation recently uncovered links between certain medical cannabis companies and organized crime. “That really shook up the industry,” Anthony says. The impact goes beyond Portugal itself. Anthony takes care to explain that whenever such stories hit the headlines, they reinforce financial institutions’ fears about cannabis being a high-risk sector, making access to banking and insurance even more difficult. “It’s unfair, but that’s what happens.” On the ground, Portuguese operators now face “an extra layer of caution,” with potential long-term damage to the country’s reputation for quality. “If a country gets a poor reputation because of a couple of bad apples, it makes survival in this industry much harder.”

Spain, meanwhile, is edging toward implementation of a highly restrictive framework: only specialist doctors will be allowed to prescribe, flowers will be banned, and hospital pharmacies will be the sole distribution point. “If you have to go to a hospital every time you want your medicine, access becomes much harder.”. Patients who cannot access through official channels will likely turn to unregulated ones, a nuance Germany’s health ministry has acknowledged. “In Germany, they understand that the more patients you see, the smaller the illicit market gets. That’s a thoughtful approach.”

Outside of Europe
At the same time, developments in Thailand and Lebanon could have ripple effects in Europe as well. Thailand’s cannabis market exploded after cannabis was removed from the narcotics list, with dispensaries “every other store in Bangkok.” Now, however, the government is shifting back to a strictly medical regime, creating potential oversupply, according to Anthony. “They’ve got good genetics, high-quality production, and will be looking at exports, though regulatory alignment with EU standards remains a question.” Lebanon, with its long history of cannabis cultivation, is also moving toward legalization, with regulators keen to integrate legacy farmers into a legal framework and gain access to the European market.

Overall, the European cannabis industry continues to grow, led by increasing demand from Germany and the UK. At the same time, shifting cannabis policies outside of Europe may impact the market, though it is difficult to quantify that effect at this stage. “The surrounding dynamics, whether in Portugal, Thailand, or even Lebanon, can’t be ignored.

For more information:
Cannintelligence
+34 938585526
+44 207 097 1351
[email protected]
cannintelligence.com