Could legal German cannabis soon be a thing? When the German government announced late last year that they would be legalizing cannabis, it caught few by surprise. And why wouldn’t it? They’ve had medical cannabis since 2017. Germans caught with small amounts of cannabis are almost never charged. Europeans in general are very open about cannabis.
No timeline has yet been set. But with 83 million citizens, the potential for legal German cannabis is sky-high.
Potential of Legal German Cannabis
A report from cannabis data analysis firm BDSA, expects legal German cannabis sales to hit $3 billion a year by 2026. That far exceeds other potential global suppliers: Mexico ($2 billion), France ($550 million), and the U.K. ($500 million).
German economist Justus Haucap projects a market reaching $10 billion USD. His study estimates a German demand for 400 tons of cannabis annually. That’s at least €4.7 billion euros from cannabis, not including tax revenues. Haucap also predicts the creation of 27,000 jobs.
American Tourism
What do Americans think of legal German cannabis? Frankfurt-based cannabis holding company, Bloomwell Group, recently published a survey on this question.
An overwhelming 87% thought cannabis should be legal worldwide. 52% were aware Germany would likely become the largest cannabis market in the world. 65% of those surveyed said they would travel to a city or country to experience its cannabis market. While 44% said they would travel to Germany specifically for its cannabis tourism.
The co-founder and CEO of Bloomwell Group, Niklas Kouparanis, thinks: “Germany will be the flagship market for cannabis in the world… I think the new language of cannabis will be German.”
Opportunity for Canada in the Legal German Cannabis Market?
When Germany rolled out its medical cannabis program in 2017, demand overwhelmed supply. To keep up, the country has been importing cannabis from places like Canada and Portugal.
This puts Canadian producers in a special position. Normally, American markets dominate global trade. But with their prohibition laws shutting themselves out, Canadians have a unique opportunity to lead. It’s like the country’s arbitrage opportunity in Cuba via the US trade embargo. Except this time, instead of dealing with a poor, backwards-looking dictatorship, Canadians are dealing with German efficiency.
As well, legal German cannabis will likely be the catalyst for European-wide legalization. If Americans don’t legalize cannabis by then, Canadian brands are in a very good position. One that may never exist again.
Footnote(s)
https://bdsa.com/wp-content/uploads/2022/03/Cannabis-Market-Forecast-Spring-2022-Update.pdf