Colorado, California, Germany? – Why Germany Will Set the Cannabis Standard for Others to Follow in Europe
Germany’s medical cannabis sector is gradually expanding to cater to the continuously rising demand. The space is now filled with investors looking to cash in on the widespread interest in cannabis-derived medications. The number of startups currently in the sector has more than tripled the original number of startups available during the sector’s first year of being established.
The current state of the country’s medical cannabis sector shows that a legalized adult-use market would thrive in the country. In fact, it could generate twice as much revenue as the medical market in its early years and then surpass medical 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 medical cannabis program that is one of the top three in the world. Experts have emphatically stated that Germany could very well be the next country to make progressive modifications to its cannabis legislation.
Germany’s medical cannabis program has in the past influenced numerous countries to kick-start or make modifications to their strict cannabis laws. The blooming market serves as a perfect example for countries interested in introducing cannabis reforms to their constitution. If Germany remains on this path, it is also the most likely to inspire change in the international cannabis industry.
The newly inaugurated leadership in Germany has assured the public of their plans to approve more cannabis initiatives within the next few years. If and when the government finally approves adult-use or recreational marijuana, the state’s economy and residents would massively benefit from the program. With a few tweaks, the country already has the framework for a successful cannabis program. With a few tweaks, it could develop a robust recreational cannabis market. With just the medical cannabis sector, dozens of cannabis startups have gotten heavy funding from celebrities and notable investors.
Germany’s proposed recreational market
It’s taken the country this long to discuss a motion to decriminalize cannabis totally. The medical cannabis program is less than six years old, and it has startup companies like Cantourage, Demecan, Sanity Group, and even Cansativa flourishing within it.
When the previous administration legalized medical cannabis, talks began underground to discuss the possibility of adopting recreational cannabis reforms also. However, the previous government was against it. At the moment, these discussions are surfacing in different regions of the country, and they are being encouraged by the country’s new coalition government. Once the government introduces and approves a bill to this effect, it is guaranteed that investors from all over the world will start trooping in to get a piece of the cake.
In addition, many experts and cannabis investors in different countries believe that Germany could set an excellent example for European countries to hop on the total cannabis reform train.
Cannabis Startups Currently Thriving In Germany
First, there is the Sanity Group. This Berlin-based cannabis-derived pharmaceutical company successfully completed a funding round by receiving up to $3.45 million from the Casa Verde Venture Capital firm. Casa Verde is an investment firm that funds various cannabis businesses within and around Europe. The firm is chaired by world-famous musician and entertainer Snoop Dogg. Since its inception, the 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. This Frankfurt-based company raised $15 million in the most recent funding round organized by Casa Verde VC. This round is the most successful funding round for the company. Experts predict that the next funding round will increase by a substantial amount.
Startups like Cansativa and the Sanity Group have helped Germany’s cannabis industry stay on top of the European cannabis sector. These budding firms contribute each day to Germany’s reputation as the most prominent legal adult-use market in Europe. Not only are there startups and angel investors in Germany’s cannabis sector, but the space also has well-trained and educated doctors who are well-versed in prescribing cannabis-derived drugs as treatments for various ailments.
Different sources based in Germany disclosed that patients registered in the medical cannabis programs have rights to insurance reimbursements. Within the last 24 months, the rate of insurance reimbursements within this sector has increased by 8.9%. Overall, nothing less than $15 million worth of reimbursements has been made since 2017.
What the future holds
Reports state that the government is still working on drafting a measure for recreational pot. The sources claim that knotty details about licensing, manufacturing, producing, processing, and even retailing are still being hashed out. If the new coalition government were to legalize adult-use cannabis today, annual sales of the plants and their derived products would double.
Germany is gearing up 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 runs out, Germany will be home to the production facilities for cannabis. While cannabis stores will finally be allowed to sell pre-rolled joints, buds, concentrates, oils, and marijuana gummy bears.
A lot of activities are currently going on underground regarding the proposed recreational cannabis market. International cannabis firms are low-key trying to carve a piece of the market for themselves.
The traffic light coalition government is yet to give comprehensive details about the proposed recreational market. This may take a backseat to the ongoing chaos in Europe’s Ukraine and Russia.
The earlier everything settles, the sooner the German government will finally be able to put their money where their mouths are. Regulating the recreational cannabis market will limit the trade of harmful, untested substances. The quality of weed products sold in German cannabis dispensaries will be controlled, and minors will be less exposed to the drug.
In the meantime, businesses like Aurora Cannabis, Demecan, and Aphria RX are making preparations to become a part of what will soon become a multibillion-euro cannabis sector. These three businesses are currently the primary producers of the country’s medicinal weed supply. Their plan is to ramp up production as soon as the proposed initiative is signed into law.