European Cannabis Markets

Like many other continents, cannabis legalization has been spreading through Europe. Countries like the United Kingdom, Italy, and Germany, among many others, have legalized medical cannabis. Access to medical use cannabis has been increasing as support for cannabis’ medicinal values grows. Though recreational uses remain illegal in most countries, many countries, like the Netherlands, have decriminalized the use of cannabis. As countries continue to change their cannabis laws, it is likely that changes are coming to European cannabis markets.

In 2019, the European cannabis market was valued at $260 million. For comparison, the legal cannabis market in the United States was valued at $61 billion with less than half of the population of the continent of Europe. It is possible that Europe has the potential to exceed the US cannabis market as access to cannabis continues to increase.

Background: Cannabis in Europe

The European Convention on Human Rights published a report in 2015 that stated any drug use that does not harm others should be tolerated and not declared illegal in the European Union (EU). In the beginning of 2019, the European Parliament requested the European Commission to integrate both the regulations and legal frameworks of cannabis products across the EU. 17 active clinical trials in various European countries have been intensively studying and testing the levels of efficacy of cannabis and cannabinoid medications to counteract diseases since February 2020.

EU Drug Schedule Changes

The (EU) voted to delete the Schedule IV classification of cannabis and cannabis resin on December 2, 2020. This change came at the recommendation of the World Health Organization and will allow for more research into the medical benefits of cannabis while still regulating its use. Cannabis and cannabis resin will remain in Schedule I and the EU stated that this change does not signal their support for a “liberalization of the use of cannabis.”

Access to Medicinal Cannabis

Medicinal cannabis has been legal in the United Kingdom since 2018, though recreational use remains illegal. Access is currently quite limited and cannabis use is restricted to three prescription drugs. Currently, an estimated 40% of cannabis patients in the United Kingdom come from London and the city has been a hotspot for cannabis business growth. Though the medicinal market in Europe is expected to grow, it is unlikely that recreational use is coming soon.

In Italy, medicinal cannabis has been legal since 2007. Though the use of cannabis is not illegal, it is illegal to possess or consume cannabis. Utilizing a loophole allowing for the “sale of plant for ornamental purposes,” an increasing number of retailers have been selling recreational cannabis branded as cannabis light, cannabis with a THC of 0.6% or less. It is likely that cannabis laws in Italy will continue to fluctuate.

Germany is one of the largest producers of cannabis in Europe and the country has become a leader in the medical cannabis industry. Medical cannabis has been legal in Germany since 2017 and decriminalization efforts have been spreading through the country. It is possible that the legalization of recreational cannabis might not be too far off.

Future of European Cannabis Markets

Over the last decade, multiple countries across Europe have legalized medicinal cannabis and have begun research into the plant’s medical benefits. Though many countries have decriminalized cannabis, few have legalized recreational uses. Luxemburg became the first country in the EU to legalize recreational cannabis in 2019 — though citizens are still waiting for a regulatory system.

The European cannabis market is only reaching a fraction of its potential. Medicinal cannabis access in the United Kingdom is expected to increase and issue in an expansion of cannabis businesses. Fluctuating laws in Italy and Germany could tip toward legalization as support for cannabis grows. The success of these European cannabis markets encourages neighboring countries to legalize and increase access to cannabis.

How Can Sapphire Risk Help?

Tony Gallo and the team of application writers and consultants at Sapphire Risk Advisory Group have over 30 years of security experience and expertise. Follow us on social media to stay up to date with global cannabis industry updates!