A new study projects that the European medical cannabis market will be worth around $3 billion by 2025. Forecasts show that Germany will lead the industry in the years to come while other Western countries, such as Italy and the UK, are expected to grow as well.
In a report concluded by Brightfield Group and Hanway Associates, experts claim while the European legal cannabis market is “rather small”, it is thought to grow rapidly over the next few years.
As we’ve already cited in another report from the group, the coronavirus pandemic doesn’t seem to have had as big an impact as some might have thought throughout the year.
Regardless of the pandemic, “Europe’s cannabis market is projected to reach $359 million in 2020, an incline of 25% from 2019, and will grow to over $3.1 billion by 2025.”
Reportedly, Germany will dominate the market. According to some estimates, the medical cannabis industry will be worth around $2 billion in the country – yes, Germany might make up the two-third of the whole European market.
Businesses, investors and patients will have to take a look at other leading countries, such as France, the Netherlands and Switzerland, as well.
In Switzerland, for example, more people than ever signed up for medical cannabis, while in France there is going to be a pilot programme supported by the government in 2021 – Poland and Denmark are some countries that could make some noise in the industry as well.
In the report, the group claims: “By 2022, adult-use cannabis will be made legally available in two countries: the Netherlands and Switzerland.
“Both are pilot programs, meaning sales are limited and there is no guarantee legalisation will occur as a result, though the two governments intend to use pilot findings to inform formal adult use policy considerations after the trials conclude.
“These pilots – and the wider adult-use programs they may preclude – are intended to be completely separate from the medical markets of each country.
“While it is possible there will be shared suppliers, they will go through separate, distinct authorisation processes and, as well as supply chains.
They added the CBD market would benefit from the professionalised medical programmes that would be in place in more European countries in the future. The report finds that it will lead the CBD industry to be more price-competitive and medical cannabis use less “stigmatised” among patients.
All in all, a regulated, safe market will drive the medical market to grow significantly. Although the European and the Northern American markets are different, Europe could be a massive force in years to come.
From Austria and Ireland to Portugal, countries are ready to make the necessary steps to satisfy the demand for medical cannabis.
Should you be interested in more reports on the (global) cannabis market, look for Brightfield Group.