Adult-Use Cannabis in Germany

Adult-Use Cannabis in Germany

Adult-use cannabis legalization is expanding globally and Germany is poised to be the next country to launch legal recreational cannabis sales. Germany has seen an increase in support for cannabis legalization over the past few years and has had a successful medical marijuana market since 2017. While cannabis is currently only permitted to be sold in select pharmacies to approved patients, it is likely that the country will legalize by 2024.

The Current Status of Cannabis in Germany

Germany is expected to draft a cannabis bill by the end of this year, but it is still unclear what model the new market will establish. Neighboring countries of Switzerland and The Netherlands are currently hotspots for cannabis use and have made the ‘coffee shop’ model of cannabis consumption popular. These locations allow the consumption of cannabis on-site and promote a social appreciation of the plant.

Despite this, many in the country have stated a desire to model after the United States with a focus on minimizing the illegal market. This could involve establishing the more stringent security regulations and compliance standards required in many U.S. state cannabis markets. If using the United States as the example, Germany would likely see adult-use cannabis sold out of licensed dispensaries, rather than out of pharmacies as is the current practice for their medical market.

Since there are currently no guidelines set for this new cannabis program, there is still much that is unknown about how cannabis will be regulated and sold. One topic currently up for discussion is the permitting of tourists to purchase adult-use cannabis in Germany as some are proposing sales be restricted to citizens only.

The Future of Cannabis in Germany

Germany’s medical market generated over $977 million USD in sales in 2019 and is continuing to grow annually, so it expected that the adult-use market would follow a similar trajectory.Still, the legalization of recreational cannabis in Germany is expected to supply 27,000 new jobs according to a 2021 study from Heinrich Heine University in Duesseldorf.

As the cannabis market in Germany continues to form, there are still many questions about what the new market will look like. It is yet to be determined if the country will adopt a consumption lounge style model, like that which has been made popular in The Netherlands, if the country will continue to sell out of pharmacies, or if Germany will license dispensaries for adult-use sales.  

Regardless of how Germany models its new cannabis program, it is likely that this will cause neighboring countries to consider legalizing cannabis as well. Though few European countries have legalized adult-use cannabis as of 2022, support for the plant is growing and it is expected that more countries will legalize cannabis in the coming years. 

How Can Sapphire Risk Help?

Tony Gallo and the team of experts and consultants at Sapphire Risk Advisory Group have worked to secure medical marijuana and recreational cannabis businesses in 37 states. Follow us on social media to stay up to date with more security best practices and cannabis industry updates!