In 2015, a report from the European Convention on Human Rights (ECHR), stated that drug use, when not injuring others, should not be illegal in the EU. While there are 37 million people in Canada and 327 million in the United States, the European Union is home to almost 743 million.
In 2018, six new countries have announced medical legalisation, the number of patients increased by 40% month on month and more than 500 million euro has been invested in the European cannabis industry. In 2018-2019, the European cannabis market experienced greater growth than in the previous six years, according to the “European Cannabis Report” released by Prohibition Partners.
In November 2020, United Nations voted to recognise the medical potential of cannabis by removing it from Category IV of the Single Convention on Narcotic Drugs and European Court of Justice ruled that CBD is not a narcotic under EU law, allowing for the commencement of application for marketing approval for CBD products on the continent.
Some form of medical cannabis (or cannabis-based medicine) is now legal in 22 countries in the region, with a further 5 countries decriminalising the recreational use of personal amounts of cannabis.
In 2020, there were 17 active clinical trials, investigating the efficacy of cannabis and cannabinoid medications against diseases, in Austria, Bulgaria, Denmark, Germany, Hungary, Netherlands, Poland, Spain, Switzerland, United Kingdom.
Market Size and Forecast
According to a new Brightfield Group report, Europe’s cannabis market is projected to rise 25% from 2019 to reach $359m in 2020 with more than 70% of sales coming from Germany.
In the sixth edition of the European Cannabis Report – produced by London-based advisory group Prohibition Partners – Europe’s cannabis market is projected to be worth €403.4 million by the end of 2021 and to grow with a CAGR of 67.4% from 2021 to reach almost €3.2 billion by 2025:
- Potential medical cannabis market will hit 2.65 billion euros
- Potential recreational market value will reach 0.55 billion euros
The market forecast expects to see a slow start over the review period with recreational cannabis only expected to come to the fore in 2022 following legalisation in the Netherlands and Switzerland whereas Luxembourg, Portugal, Spain, Germany and Malta are supposed to introduce legal access to adult-use cannabis, at least on a trial basis, by 2025.
The August 2020 update to BDSA’s global legal cannabis forecast shows almost $4 billion by 2025, while Brightfield Group forecasts over $3.1bn with a 2020-2025 CAGR of 52% and about 67% of sales expected to be in Germany.
New Frontier Data estimates the total value of cannabis demand in Europe is $42.9 billion.
Source: cannabusinessplans.eu