Germany's "traffic light" coalition is no more; but when it comes to cannabis, its legacy is here to stay. Since April 1, 2024 and for the foreseeable future, doctors can now prescribe it, creating tailwinds for the country's medical cannabis startups.
North American players took notice. In June of this year, NASDAQ-listed cannabis producer Organigram Holdings invested in Berlin-based cannabis company Sanity Group with hopes of gaining a foothold in what it sees as a high-growth market.
With a distribution network of more than 2,000 pharmacies, Sanity claims a 10% market share of Germany's legal cannabis market—which, unlike in some other countries, is purely a medical market.
Despite earlier speculations, the coalition, including the Greens, has only partially legalized adult use or recreational cannabis in Germany. Personal possession and cultivation are subject to strict limits, and while social cannabis clubs are now legal, they face considerable hurdles, making for a minimal commercial opportunity.
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