While the adult-use market in Europe is taking longer than expected to take shape, the medical cannabis space continues to grow year after year. This is the takeaway that CannIntelligence, an intelligence platform serving the global cannabis industry by providing regulatory and market data, has gathered over years of analyzing the market.
Germany: more opportunities in medical cannabis
The talk of the town when discussing Europe is obviously Germany. While recreational cannabis news may make the headlines, the reality is entirely different. "We did a report to identify the economic opportunities of the recreational space in Germany," says Anthony Traurig, senior advisor at CannIntelligence. "And we found that opportunities are quite limited. After all, in Germany, there are non-commercial cannabis clubs that are not supposed to be for profit." While there may not be opportunities strictly in cannabis cultivation, there is potential in ancillary services. "Growing equipment, payment services, software tracking devices—things along those lines," continues Anthony. "But we think that those opportunities are quite small. Anyway, these are obviously positive movements for the industry. However, if you look at the regulations and what they actually allow for, it's certainly limited."
Anthony Traurig
At the same time, the medical cannabis market is an entirely different beast. "The medical market is booming," points out Anthony. "I find it interesting that so much of the attention is focused on what is happening on the recreational front in Germany, but the true story is the medical market."
Since regulations changed on April 1, 2024, medical cannabis is no longer considered a narcotic substance requiring a special prescription for patients to access it. Now, it's much easier to get a prescription. "Regulations removed cannabis from the narcotic schedule. If you are prescribing something as a narcotic, it requires an entirely different prescription than a 'normal' drug. So, with that regulatory change, doctors don't have to use that special prescription form, effectively lowering some of the hurdles to access."
The effect of that regulatory change in the medical cannabis sector can be seen in the sheer amount of imports finding their way into Germany. Anthony notes that before the regulatory change, the country imported 8 tons of medical cannabis. Then, in Q3, it increased by approximately 72% from Q2, and 247% increase from Q1. "There has been a massive increase in imports," he says. "Obviously, we only have one quarter with the new data, and it's not yet the time to state that this is the norm or an anomaly." What's certain, however, is that something has inevitably changed in the medical cannabis landscape in Germany.
Poland: cannabis medications access is a challenge
Other movements in the medical cannabis space in Europe can be seen in Poland, for instance, says Anthony. "The Polish government is generally not in favor of widespread cannabis use, even for medical purposes. There was a large boom in patient numbers, which worried the government, as it assumed people were not using cannabis as medicine but rather as a way to access it recreationally. So, they ended up issuing a regulation that prohibited the use of telemedicine to prescribe cannabis. That has had a significant impact on prescriptions."
France: an arrested experimentation
Another European country where the medical cannabis market has taken a significant blow is France, where the pilot program was recently canceled, leaving many patients without their medications. "It was quite abrupt," Anthony remarks. "They had been running this for quite a few years, and the results seemed positive. The government was also taking it seriously, and there were positive signs. However, due to budget disputes, it was not funded again, and at the last minute, they extended it for six months so that patients could be weaned off. Going forward, patients are scrambling to get their medicine."
The duality of Spain
An interesting country, mainly due to the discrepancy between public acceptance and policies, is Spain. The country has a very vibrant cannabis scene, with social clubs in many cities and even the renowned Spannabis event. "There has been some positive development on the medical cannabis side. The Department of Health has issued some regulations on MMJ, and there's a chance these will be put in place by the summer." These medical cannabis regulations seem to be particularly restrictive, despite the general public being largely in favor of cannabis and not viewing it with much prejudice. "Distribution will only be allowed in hospital pharmacies, and only specialist doctors can prescribe it. On top of that, flowers are precluded from being prescribed." Needless to say, such an approach greatly hinders access to these types of medicines.
All in all, things are moving forward in Europe. It's perhaps too optimistic to think that the trend is constantly upward. It's only natural to encounter roadblocks. At the same time, some countries are leading the charge in terms of progressive cannabis policies, potentially demonstrating the economic and healthcare opportunities of this industry.
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