Germany Sees Surge in Legal Medical Cannabis Imports in Q3

Germany’s Medical Cannabis Imports Surge Following Adult-Use Legalization Law

In the three months following Germany’s landmark legalization of adult-use cannabis, the nation saw a dramatic increase in legal medical cannabis imports. The data, which covers the third quarter of 2024 (Q3), shows that medical cannabis imports to Germany surged by more than 70% compared to the previous quarter, signaling a growing demand for legal cannabis products in the country. This uptick coincides with the implementation of Germany’s Cannabis Control Act (CanG), which officially took effect on April 1st, 2024.

Medical Cannabis Import Data for Q3 2024

Germany’s Federal Institute for Drugs and Medical Devices (BfArM) recently released the Q3 import statistics for medical cannabis, providing insight into the country’s growing legal cannabis market. According to BfArM, the total amount of cannabis imported from abroad for medical and medical-scientific purposes increased significantly during the first three full months following the enactment of the CanG law.

The imported cannabis is primarily in the form of dried flowers and extracts, with the data showing these quantities measured in kilograms. The BfArM noted that dried cannabis flowers were accounted for as weight quantities, while the cannabis extracts were measured based on the amount of dried cannabis required to produce the extract.

This increase in medical cannabis imports can be attributed to several factors, including the newly established legal framework that provides greater clarity and legitimacy for medical cannabis use across Germany. The chart provided by BfArM highlights the growing trend in imports as the country adjusts to its evolving cannabis market.

Germany’s CanG Law and Its Impact

The Cannabis Control Act (CanG), passed earlier this year, is a historic piece of legislation that removes cannabis from Germany’s Narcotics List. This change makes cannabis legal for personal use, with provisions allowing personal cultivation, possession, and use of cannabis products for adults. These provisions took effect on April 1st, 2024, marking a major shift in the country’s cannabis policies.

A key component of the CanG law is the launch of cultivation associations, which became legal on July 1st, 2024. These associations allow registered members to cultivate their own cannabis for personal use, further shifting the legal landscape for cannabis production and consumption.

Pillar 1: Home Cultivation and Cultivation Associations

Under the first pillar of Germany’s cannabis legalization model, the government aims to provide multiple legal avenues for accessing cannabis, with an emphasis on reducing the influence of the black market. This includes allowing personal cultivation of cannabis at home and establishing cultivation associations where individuals can legally grow cannabis for their personal consumption.

Michael Greif, Managing Director of the German Cannabis Business Association (BvCW), recently called for the swift implementation of these measures to ensure the success of the nation’s legal cannabis market. He emphasized that cultivating cannabis in regulated environments, like licensed cultivation associations, would provide consumers with safe and controlled access, unlike the unregulated black market, which is fraught with dangers such as unsafe additives and a lack of age restrictions.

Pillar 2: Regional Adult-Use Cannabis Commerce Trials

The second pillar of Germany’s cannabis legalization plan involves the initiation of regional adult-use cannabis commerce pilot trials. These trials, which are designed to test the viability of a regulated commercial cannabis market, have already been launched in countries such as the Netherlands and Switzerland, and are permitted under European Union law.

The BvCW has urged the German government to move forward with these pilot trials without further delay to help curb the country’s thriving unregulated cannabis market. The trials would allow consumers to purchase cannabis from licensed dispensaries, ensuring product safety, transparency, and proper age verification. According to Michael Greif, these commercial models would significantly reduce the black market and provide consumers with safer, more reliable access to cannabis.

Economic Potential of Germany’s Cannabis Market

The German cannabis market is rapidly growing, with estimates suggesting a consumer base of 4 to 8 million people and a total potential market value ranging from €7.8 billion to €15.6 billion. These numbers highlight the significant economic potential of the legal cannabis industry in Germany, one of the largest markets in Europe.

To meet the demand for medical and adult-use cannabis, Germany’s cannabis industry would need to produce over 948,000 kg of cannabis flower annually, according to estimates from leading economist firm Whitney Economics. This production volume underscores the scale of the cannabis market and the need for robust infrastructure and regulation to ensure that the supply can meet the growing demand.

The Path Forward for Germany’s Cannabis Industry

As Germany moves toward fully implementing its CanG law and establishing a regulated cannabis market, several challenges remain. The country’s legal cannabis market will need to ramp up production capabilities to meet domestic demand, and policymakers must ensure that the regulations for both medical and adult-use cannabis are carefully crafted and enforced.

The legal framework for medical cannabis has already shown signs of success, with increased imports in the first months following legalization. However, as the adult-use market expands, Germany will need to address issues such as product quality, consumer protection, and public health concerns. Additionally, the swift implementation of regional commercial trials will be critical in determining the success of the broader legalization effort.

Germany’s legal cannabis market is entering a new era, marked by significant increases in medical cannabis imports and the implementation of adult-use cannabis legalization measures. While the first provisions of the CanG law have already had a tangible impact, including the legalization of cultivation associations and personal cannabis cultivation, the country’s next steps will involve testing the commercial viability of the cannabis market through pilot trials.

As the cannabis industry in Germany continues to evolve, the country has the potential to become a leader in Europe’s cannabis market, with both medical and recreational cannabis serving as key pillars of the emerging industry. The next phase of legalization will be critical in determining whether Germany can successfully transition to a regulated and thriving cannabis market.