Colorado, California, Germany? – Why Germany will set the cannabis standard for others in Europe to follow

The medical cannabis sector in Germany is gradually being expanded in order to meet the continuously increasing demand. The space is now filled with investors looking to capitalize on the widespread interest in cannabis-derived medicines. The number of startups currently operating in the industry has more than tripled from the original number of startups in the industry’s first year of existence.

The current state of the country’s medical cannabis sector shows that a legalized market for adult use in the country would thrive. In fact, it could generate twice the sales of the medicinal market in its early years and surpass medicinal cannabis sales after a few years.

Germany is the second most likely country to legalize cannabis.

Germany currently runs the European cannabis industry. The country has a thriving medicinal cannabis program that ranks among the top three in the world. Experts have strongly stated that Germany could very well be the next country to make incremental changes to its cannabis legislation.

Germany’s medical cannabis program has in the past prompted numerous countries to enact or make changes to their strict cannabis laws. The thriving market serves as a perfect example for countries interested in incorporating cannabis reforms into their constitutions. If Germany stays on this path, there will most likely be impulses for changes in the international cannabis industry.

The newly installed leadership in Germany has reassured the public of its plans to approve more cannabis initiatives in the coming years. If and when the government finally approves adult or recreational use of marijuana, the state’s economy and residents would benefit massively from the program. With a few adjustments, the country already has the framework for a successful cannabis program. With a few tweaks, it could develop a robust recreational cannabis market. In the medical cannabis sector alone, dozens of cannabis startups have received big bucks from celebrities and big-name investors.

Germany’s planned leisure market

That’s how long it’s taken the country to discuss a motion to fully decriminalize cannabis. The medicinal cannabis program is less than six years old and has start-up companies like Cantourage, Demecan, Sanity Group and even Cansativa thriving within it.

When the previous government legalized medicinal cannabis, underground talks began to discuss the possibility of passing reforms for recreational cannabis as well. But the previous government was against it. These discussions are currently taking place in different regions of the country and are being promoted by the country’s new coalition government. Once the government introduces and approves such a bill, investors from all over the world are guaranteed to step in to get a piece of the pie.

Furthermore, many experts and cannabis investors in different countries believe that Germany could be an excellent example for European countries to jump on the bandwagon of comprehensive cannabis reform.

Cannabis startups are currently thriving in Germany

First there is the Sanity Group. This Berlin-based cannabis-derived pharmaceutical company has successfully closed a funding round by raising up to $3.45 million from Casa Verde Venture Capital firm. Casa Verde is an investment firm that funds various cannabis companies in and around Europe. The company is chaired by world-renowned musician and entertainer Snoop Dogg. Since its inception, Sanity Group has raised over $75 million. This figure currently holds the record for the highest amount generated by a European cannabis startup.

Another group is Cansativa. The Frankfurt-based company has raised $15 million in the latest funding round organized by Casa Verde VC. This round is the most successful round of financing for the company. Experts assume that the next round of financing will increase by a significant amount.

Startups like Cansativa and Sanity Group have helped the German cannabis industry stay at the forefront of the European cannabis sector. Every day these emerging companies contribute to Germany’s reputation as the most important legal market for adult use in Europe. In the German cannabis sector, there are not only start-ups and angel investors, but also well-trained and educated doctors who are skilled in prescribing cannabis-derived medicines to treat various diseases.

Various Germany-based sources revealed that patients enrolled in the medical cannabis programs are eligible for insurance reimbursements. Within the last 24 months, the insurance reimbursement rate in this sector has increased by 8.9%. In total, no less than $15 million worth of reimbursements have been made since 2017.

What the future brings

The government is reportedly still working on drafting a policy on recreational cannabis. The sources claim that tricky details about licensing, manufacturing, production, processing and even retail are still being unearthed. If the new coalition government were to legalize adult-use cannabis today, annual sales of the plants and derived products would double.

Germany is preparing to be the envy of the international cannabis market. At this rate, very few things can stop the country’s new government from executing this proposed sector.

In a few years, hopefully before this decade is over, Germany will be home to cannabis production facilities. While cannabis stores will finally be allowed to sell pre-rolled joints, bud, concentrates, oils and marijuana gummies.

There is currently a lot of activity going on underground in relation to the proposed recreational cannabis market. International cannabis companies are reluctantly attempting to grab a piece of the market.

bottom line

The traffic light coalition government has yet to announce full details of the planned leisure market. This could take a backseat to the ongoing chaos in Europe’s Ukraine and Russia.

The sooner everything is settled, the sooner the federal government can finally throw its money into the balance. Regulating the recreational cannabis market will restrict trade in harmful, untested substances. The quality of cannabis products sold in German cannabis dispensaries will be controlled and minors will be less exposed to the drug.

Meanwhile, companies like Aurora Cannabis, Demecan, and Aphria RX are preparing to become part of what will soon become a multi-billion-dollar cannabis sector. These three companies are currently the main producers of the country’s medicinal weed supply. Their plan is to ramp up production once the proposed initiative is signed into law.

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