Mid-Year 2022 Cannabis Industry Updates: International

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Throughout the month, we provided insights into what’s happening in the US cannabis industry in western states, central and southern states, northeastern states and five states that implemented medical programs in the first seven months of 2022. Now it’s time to take a look at what’s happening in the international markets.

One of the biggest stories of 2022 was the Russian invasion of Ukraine, which significantly disrupted the global supply chain. The cannabis industry has not been immune to these delays and supply chain bottlenecks. Cannabis companies are also facing higher prices thanks to the knock-on effect that the invasion has had on the global economy.

Despite the challenges, progress has been made in a number of international cannabis markets. For example, European officials from Germany, Luxembourg, Malta and the Netherlands met in July to discuss reforms for adult cannabis use and find ways to collaborate on policy development.

Let’s take a look at some of the news about certain international cannabis markets that collapsed in the first seven months of 2022.

Canada

As the adult cannabis markets in Canada begin to mature, problems are developing. Widespread concerns in the first seven months of 2022 include oversaturation of retail stores, unpaid federal excise taxes, the need for retailers to increasingly discount products, and unpaid regulatory fees. In June, the Canadian government announced a new federal cannabis strategy table that would bring together industry leaders and government officials to discuss these issues and more.

In Ontario, a major problem is the province’s single state-owned wholesaler, referred to as the wholesale monopoly. Wholesaler delays and suspended shipments following a cyber attack have left thousands of retailers unable to place orders. It took a week for deliveries to resume following the cyberattack, meaning retailers had empty shelves for days. This single-point-of-failure model prompted the Ontario Chamber of Commerce to call for reform in August.

In the first half of 2022, some positive news came from the Ontario cannabis market. In March, retail delivery and curbside pickup became permanent, and the Ontario Alcohol and Gambling Commission announced that cannabis retailers would be allowed to contract with manufacturers to make white wine. Label and private label cannabis products.

In British Columbia, where sales of legal cannabis flattened out earlier this year, consumers were pleased to hear that private cannabis stores would be allowed to ship non-medical cannabis to consumers via delivery services and the mail. Additionally, the British Columbia government announced in April that it was considering allowing adult cannabis consumption rooms, which could boost tourism and create more tourism and hospitality jobs.

European Union

The 27 countries of the European Union represent a variety of cannabis laws and programs. For example, Germany is moving forward with plans to launch the first national adult cannabis program in Europe, but regulations have yet to be developed. Germany’s Health Ministry is holding hearings on a range of issues and a draft law is expected before the end of the year.

While Germany would represent a large adult cannabis market, it isn’t the first country to legalize recreational marijuana in the European Union. Adult cannabis was legalized in Malta in December 2021 and the country has already issued licences, including licenses to sell cannabis to other countries. The first shipment of medicinal cannabis products outside the country went to Germany in June this year.

However, most countries in the European Union are still a long way from legalizing cannabis for adults. In fact, some have yet to legalize or decriminalize medicinal cannabis, while others are just getting started. In February, Italy’s Constitutional Court rejected a referendum initiative that would ease restrictions on growing cannabis and other cannabis-related offences. In June, the Spanish government approved the sale of medicinal cannabis in pharmacies. The start of sales should take place later this year.

Other international markets

Switzerland (not a member of the European Union) launched an adult cannabis trials program this summer, allowing a few hundred people in the city of Basel to purchase cannabis for recreational use. The launch is part of a two-and-a-half year study to learn more about “alternative forms of regulation” for cannabis.

In June, Swiss lawmakers scraped the cannabis ban from the country’s narcotics law. At the same time, changes were made that would allow patients to obtain a normal prescription from their medical cannabis doctor instead of a special permit. Cannabis is now part of the pharmaceutical system in Switzerland and controlled by the health authority Swiss Medic.

Also in Europe, the Isle of Man issued its first medicinal cannabis license granting permission to import and supply medicinal cannabis products to individuals with private prescriptions. However, medical cannabis is still not available through the country’s healthcare system, and there are no doctors authorized to prescribe it to patients.

In Europe’s south-eastern Balkans, Albania plans to legalize export-only cannabis cultivation for medical and industrial purposes. It’s a controversial move given the country’s reputation as a hotbed for illicit cannabis production and drug trafficking.

In June, Thailand became the first country in Asia to legalize the cultivation, sale and possession of recreational cannabis. Earlier this year, cannabis was removed from the country’s list of controlled drugs. In an unprecedented move, the government planned to distribute 1 million cannabis seedlings to citizens starting one day after legalization went into effect.

In South and Central America, countries are following similar patterns to other parts of the world, with some countries legalizing cannabis and others not even remotely close to legalization. For example, earlier this year the President of Costa Rica partially vetoed a bill legalizing both medicinal cannabis and industrial hemp.

Further south in Brazil, the country’s Supreme Court ruled that three patients could grow their own cannabis and extract the oil for medicinal purposes. The decision is expected to be adopted in similar cases across the country and is significant given that home cultivation of medical cannabis is not allowed in Brazil. Instead, medical cannabis products must be imported under current law.

The central theses

Cannabis regulations vary from country to country, and each timeline for legalizing medical and/or adult use is different. Based on what we’ve seen in international markets over the first seven months of 2022, it’s safe to say that one thing is very clear. Progress is consistently slow.

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