The EU cannabis market is still taking shape, and while companies are setting up their operations, uncertainty about the future still looms. Some growers have set up greenhouses, some have opted for indoor grows; however, the 'sleeping giant' hasn't fully awakened yet—the pharma industry, that is. What will become of small to medium growers when multinational pharma companies start to bet big on cannabis? "It's taking a bit longer than expected," says Nuno Martins, founder of Takodana, a medical cannabis grower in Portugal. "But when that tipping point comes, I doubt there will be room for indoor cannabis production as we know it today. The economics simply don't make sense in a market dominated by large-scale pharmaceutical players who usually focus on active ingredients."
The European cannabis market remains a dynamic and evolving space. While companies establish their foothold, uncertainty about the market's long-term direction still looms large. Some have chosen greenhouses, others prefer indoor grows, but the 'sleeping giant'—the pharmaceutical industry—has yet to fully awaken. This raises a critical question: what will happen to small and medium-sized growers when multinational pharmaceutical companies start making significant investments in cannabis?
Dried flowers and the advent of the pharma industry
As of now, medical cannabis is mainly consumed in the form of dried flowers supplied to pharmacies. While the effects of these medicines are scientifically well-grounded, their modes of consumption can raise more than a few eyebrows. After all, what other medicine is consumed by smoking? "The medical cannabis industry is inching towards active ingredients. If the focus shifts to processing cannabis flowers, pharmaceutical companies won't just buy a few bottles, as happens with flowers; rather, they'd buy entire truckloads of processed active ingredients that will allow them to meet and manage consistently large-scale demand"
What, then, will happen to dried flowers and indoor facilities? With countries like Germany legalizing adult-use and the possibility of the EU allowing some form of cross-country adult-use cannabis trade, indoor growers may find a niche as craft growers. However, wishful thinking may not be enough to secure a safe spot for indoor cannabis growers. "If nobody smokes dried flowers, what will become of indoor growers? It takes an incredible amount of money to produce premium flowers in those flashy facilities. In a medical cannabis market scenario dominated by multinational pharma corporations, that kind of business would hardly find a profitable space to operate."
The current political landscape in Europe doesn't bode particularly well for indoor growers hoping to capitalize on a supposedly upcoming recreational market. "Will the recreational market open up?" asks Nuno. "Looking at countries such as Italy and Austria, with very conservative, right-wing governments, or Spain, where conservative factions wield significant influence, it doesn't look easy for any form of adult-use cannabis regulatory framework to emerge. The same thing can be said about the Netherlands, where the closed cannabis supply chain experiment has been slower and more challenging than anticipated." One thing that could buy more time is the slow pace of cannabis medication registration. "As long as these types of medicines take a long time to be registered and then produced, there'll still be a place for indoor-grown flowers."
Greenhouse cultivation
In such a scenario, growers best poised to be profitable seem to be those cultivating in greenhouses or outdoors, where operational costs are much lower than indoor grows. This is why Takodana has set up a greenhouse to grow their medical cannabis. "It gives us the flexibility to produce high-quality, consistent flowers as long as the market stays as it is. If the market shifts towards mass-produced medicines from pharma corporations, we'd still be able to adjust our operations and mass-produce biomass to meet that demand."
Everything can be controlled in Takodana's hydroponics greenhouse, which is equipped with LED lighting, dehumidifiers, heating, cooling and blackout screens. "The medical cannabis market surely offers plenty of opportunities to European growers. Unlike more traditional horticultural crops, heavy regulations dictate our tempo. One needs to be able to keep up with the rhythm if they don't want to fall behind."
Takodana's greenhouse exemplifies cutting-edge cultivation. Equipped with LED lighting, dehumidifiers, blackout screens, and precise environmental controls, it combines efficiency with scalability. "The European medical cannabis market offers immense opportunities for growers who are prepared to adapt," Martins emphasizes. "Unlike traditional crops, cannabis production is highly regulated, and the ability to navigate those regulations at the right pace is critical. At Takodana, we're committed to staying ahead of the curve, delivering value no matter how the market evolves."
For more information:
Takodana
+351 275 752 539
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takodanapt.com