|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD 5.02 Billion
|
|
CAGR
(2023-2028)
|
5.53%
|
|
Fastest
Growing Segment
|
Medical
|
|
Largest
Market
|
Germany
|
Market Overview
Europe Cannabis Market has
valued at USD 5.02 Billion in 2022 and is anticipated to project impressive
growth in the forecast period with a CAGR of 5.53% through 2028. The Europe
cannabis market represents the thriving commercial industry of both medical and
recreational cannabis in the European region. Over the past few years, this
market has witnessed substantial growth, primarily driven by the increasing
trend of legalizing cannabis, extensive research on its medicinal benefits, and
a notable shift in public opinion towards its use. Within this market, there
are key players who contribute to its development. These include cultivators
and providers of various cannabis plant derivatives, as well as biotechnology
firms specializing in cannabis plant genetics. These companies play a crucial
role in ensuring the availability of diverse cannabis-infused products, such as
oils, tinctures, edibles, and a wide range of medicinal formulations. The
Europe cannabis market has become a dynamic landscape, with ongoing
advancements and innovations in product offerings, manufacturing processes, and
distribution channels. Moreover, the regulatory environment surrounding
cannabis is evolving, creating new opportunities and challenges for businesses
operating in this space.
Key Market Drivers
Upgrading
Of Regulations for Medical Cannabis
The European countries are
currently undergoing a significant transformation in the regulations
surrounding the marketing of cannabis and related products. These regulatory
changes have paved the way for the cultivation, processing, and trade of
cannabis-derived products across the region. Moreover, the online distribution
of CBD has garnered increased attention, leading to the emergence of new
companies at an accelerated pace. In May 2019, a noteworthy
development took place when European Cannabis Holding (ECH) and Miller &
Miller Chemicals Ltd. joined forces to establish Astral Health in the UK. This
newly formed platform aims to import approved medical cannabis products,
providing a comprehensive end-to-end solution. As the month progressed, anticipation
grew regarding the announcement of cannabis medical product distribution in
prominent European countries such as Germany, Italy, Spain, and France.
As the landscape continues
to evolve, these regulatory shifts are expected to have a profound impact on
the cannabis industry in Europe, opening up new opportunities for businesses
and consumers alike. With the growing acceptance and recognition of the
potential benefits of cannabis, more studies and research are being conducted
to explore its various applications in medicine, wellness, and beyond. This
increased focus on cannabis is driving innovation and collaboration among
industry players, leading to the development of novel products and services
that cater to the diverse needs and preferences of consumers.
Furthermore, the changing
regulations have sparked a wave of entrepreneurship and investment in the
cannabis sector, as individuals and companies seek to capitalize on the
emerging market opportunities. This influx of capital and expertise is fueling
the growth of the industry, creating jobs and economic prosperity in the
process. The evolving regulatory landscape in European countries is reshaping
the cannabis industry, enabling the cultivation, distribution, and utilization
of cannabis-derived products. With the establishment of new companies, the
importation of medical cannabis products, and the anticipation of further
distribution announcements, the future of the cannabis industry in Europe looks
promising. As the market continues to mature and regulations become more
established, we can expect to see even more growth and innovation in this
dynamic and rapidly expanding industry.
Rise In
Startups
There has been a
significant rise in startups in the European cannabis market in the past few
years. This surge can be attributed to several factors, including changing
regulations, increasing public acceptance, and the growing demand for
cannabis-based products. For instance, Blossom Genetics, Cannamedical Pharma,
Demecan, Grass & Co, Cannaray, Rainbow, NOBL Group, Alphagreen, Sanity
Group, and Daye were founded after 2015, showcasing the entrepreneurial spirit
in the industry. These startups have brought innovation and fresh perspectives,
driving the growth of the European cannabis market.
Moreover, well-established
companies are also entering the market with new products. In December 2019,
EMMAC Life Sciences Group launched its first unlicensed medical cannabis
products in the UK and European market, further expanding the range of options
available to consumers. This introduction of new products from established
companies adds to the diversity and appeal of the European cannabis market.
Interestingly, the UK has
emerged as the largest producer and exporter of legalized cannabis for medical
and research applications, as highlighted in a report by the UN's International
Narcotics Control Board. This demonstrates the country's potential to become a
key player in the European cannabis industry. The UK's leadership in cannabis
production and exportation positions it favorably for future growth and
influence in the European market.
With the ongoing trend of
cannabis legalization across Europe, it is expected that the region's cannabis
industry will continue to flourish. This growth is particularly anticipated to
benefit the UK, as the legalization of cannabis would further enhance its
position in the market. As the industry evolves and new opportunities arise,
the European cannabis market is poised for even more expansion and development,
fueling economic growth and innovation in the region.
Medical
Advantages of Cannabis
Cannabis, commonly
referred to as marijuana, is a plant that belongs to the cannabis family. It
encompasses two main types - Cannabis sativa and Cannabis indica. These types
differ in their characteristics and effects.
Cannabis contains two
significant components - Tetrahydrocarbon (THC) and Cannabidiol (CBD). THC is
known for its psychoactive properties, which determine the level of
intoxication experienced after consuming cannabis. On the other hand, CBD
possesses pain-relieving properties and is widely recognized for its medicinal
uses. Cannabis can be consumed in various forms, including smoking raw
cannabis, using it as additives in food, extracting oils, or taking it in the
form of softgel capsules. CBD is commonly used for medical purposes due to its
non-psychotic effects and low toxicity levels. THC, on the other hand, is
utilized for reducing the side effects of pain in AIDS and cancer treatment. The
medical advantages of cannabis have led to its increasing use in the
development of new medicines. Researchers are exploring the potential benefits
of cannabis in treating various medical conditions. As a result, many countries
are legalizing the use of cannabis for medical purposes. This growing
acceptance of cannabis's medical properties is driving the market growth in the
pharmaceutical industry.
The continuous research
and development efforts in utilizing cannabis for medicinal purposes are paving
the way for new discoveries and breakthroughs in the field of medicine. The
potential of cannabis as a valuable resource for treating various ailments is
gaining recognition and contributing to the growth of the market.
Increasing
Research for Medicinal Purposes
In April 2020, a
groundbreaking study was published on Pan European Networks Ltd, a reputable European
health website. The study aimed to investigate the impact of the COVID-19
pandemic on medical cannabis patients' mental and physical health. To achieve
this, the researchers conducted an anonymous survey, delving into various
aspects such as changes in patients' frequency of cannabis use, dosage, and
route of administration. The study also took into account the influence of
COVID-19-related closures and updates on these factors.
As the world grapples with
the unprecedented challenges brought about by the pandemic, it is anticipated
that the findings of this study will shed light on the potential growth
opportunities for the medical cannabis market. By understanding the evolving
needs and behaviors of patients during these times, healthcare providers and
policymakers can further enhance the accessibility and effectiveness of medical
cannabis treatments.
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Key Market Challenges
Lack Of
Uniform Legalization Policies Across Various EU Nations
The lack of uniform legalization
policies across EU nations undeniably hinders the growth of the European
cannabis market. This absence of a unified regulatory framework creates a
fragmented marketplace, where each country decides on the legal status,
cultivation, distribution, and usage of cannabis, making it exceedingly
intricate for businesses to comply with every unique set of laws.
For instance, while
medicinal cannabis is legal in Germany, it's still prohibited in Sweden. This
disparity discourages potential market entrants, who must navigate a maze of
different laws, regulations, and cultural attitudes towards cannabis. Moreover,
the lack of harmonization in the European cannabis market creates an unstable
investment climate, as investors face uncertainty and potential risks associated
with varying legal frameworks. Furthermore, this fragmented landscape poses
challenges for supply chain management and cross-border transactions. Each
country's regulatory requirements and restrictions on cannabis products add
complexity and cost to the movement of goods across borders, inhibiting the
seamless flow of cannabis products within the European market.
Addressing these
challenges and achieving a more harmonized and regulated European cannabis
market would require extensive cooperation and coordination among EU member
states. By establishing common standards and regulations, the European cannabis
industry could unlock its full potential for growth and expansion, fostering
innovation, job creation, and economic development across the region.
High
Cost of Entry and Competition
The high cost of entry
into the European cannabis market is indeed a formidable challenge. It
encompasses not only significant initial investments for licenses, cultivation
facilities, technological infrastructure, and regulatory compliance measures,
but also a complex web of financial considerations that can deter potential
market entrants, especially small and medium-sized enterprises.
Moreover, the competition
with the illicit market further compounds these challenges. The illicit market,
operating outside the bounds of regulation and taxation, has the advantage of
offering cannabis at lower prices. This intensifies the struggle for legal
sales and erects barriers for legitimate businesses to establish a strong
presence. The allure of lower prices from the illicit market often prevails,
making it harder for legal enterprises to gain a foothold and grow. These
factors, coupled with the regulatory hurdles, contribute to an environment that
hampers the growth and expansion of the European cannabis market, hindering its
potential to flourish and meet the needs of consumers in a regulated and
controlled manner.
Key Market Trends
Standardization
in Cultivation Practices
The cannabis industry is
making significant strides towards implementing standardized cultivation
practices for growing cannabis. With industry representatives and experts fully
convinced of the market's growth potential, they are working collaboratively on
research and development of cannabis-based medical products to drive shares at
an even more valuable rate. The global market for medical marijuana alone is
projected to be worth billions of dollars, and the adoption of standardized
growing practices has the potential to propel the market at an unprecedented
rate.
Currently, two
technologies are experiencing a boom in the cannabis cultivation market. The
first is the utilization of modern indoor cultivation technology, which employs
advanced lighting techniques to optimize cannabis growth. The second is the
application of cell culture technology, where small cannabis plants are used to
produce hundreds of identical clones, increasing efficiency and output. These
innovations, combined with ongoing advancements such as HVAC system adjustments,
sensor data utilization, and the integration of Artificial Intelligence (AI)
tools, contribute to the continuous evolution of the cannabis industry.
By promoting
standardization in cannabis cultivation, the industry aims to reduce instances
of defective growing practices and seize the tremendous opportunity for market
growth. The implementation of uniform standards will ensure consistent quality,
enhance consumer trust, and pave the way for further advancements in this
rapidly expanding industry.
Innovation
In Variety of Sativa Products
The Europe cannabis
business is experiencing tremendous explosive growth, evolving into a highly
lucrative sector driven by continuous technological innovations. In Europe, the
medical cannabis segment stands out as the highest growing market, with
clinically prescribed cannabinoids being supplied to patients orally. Among the
developed technologies, vaporizer pens have gained significant popularity due
to their ability to deliver controlled doses of cannabis with lower levels of
intoxication compared to smoking. Cannabis is available in the form of oil
extracts, typically packed in capsules, which can be consumed directly or
through vape pens.
Recently, Epidiolex, a
pharmaceutical CBD oil, has received a unanimous recommendation for approval
from the U.S. Food and Drug Administration (FDA) federal advisory committee.
This groundbreaking product has shown promise in treating rare forms of
epilepsy and has garnered consistent support, even at the federal level. The
use of cannabis oil in managing epilepsy has gained recognition and acceptance,
highlighting the potential benefits and advancements in this field.
Segmental Insights
Product Type Insights
Based on the product type, the demand for cannabis
flower is largely driven by its widespread use, versatility, and familiarity
among consumers. This traditional form of cannabis consumption offers an
immediate effect, which makes it a highly sought-after choice. Moreover, the
wide range of strains available in flower form allows consumers to select
specific characteristics such as flavor, aroma, and potency, catering to their
individual preferences. On the other hand, concentrates, while growing in
popularity due to their potent nature and novel consumption methods, are
expected to lag behind flowers in terms of market share for the foreseeable
future. This is partly attributed to the relative complexity of production and
the need for specialized equipment, which limits accessibility for some
consumers. As the cannabis market continues to evolve, the interplay between
flowers and concentrates will shape the industry's landscape, with both product
types offering unique opportunities for businesses and different experiences
for consumers.
Application Insights
Based on the application, medical segment dominated
the market in the rapidly evolving European cannabis market, the applications
of cannabis are predominantly focused on medicinal purposes. This trend is
primarily driven by the well-established and proven therapeutic benefits of
cannabis in managing a wide range of health conditions, including but not
limited to chronic pain, epilepsy, and multiple sclerosis. Countries such as
the Netherlands, Germany, and Italy have embraced this paradigm shift by
implementing robust medical cannabis programs, showcasing their progressive
stance towards accepting cannabis as a viable medical treatment option.
The continuous growth in research and development
within this sphere is consistently expanding the list of medical conditions
that can benefit from cannabis-based treatments. This ongoing progress not only
contributes to the widespread use of cannabis for medical applications in
Europe but also highlights the immense potential for further advancements in
the field. As the understanding of cannabis and its therapeutic properties
deepens, it is expected that more innovative treatments and applications will
emerge, ultimately benefiting countless individuals across the continent. With
its ever-expanding potential and the growing acceptance of its medical
applications, cannabis is poised to play a significant role in shaping the
future of healthcare in Europe.
Country
Insights
Germany is widely
anticipated to dominate the European cannabis market in the coming years. This
projection is based on several key factors that contribute to its potential
success. Firstly, Germany has a well-established medical cannabis program that
has been carefully developed and regulated. This program ensures that patients
have access to high-quality medical cannabis products that meet rigorous
standards.
Additionally, Germany has
experienced widespread acceptance of cannabis among its population. There is a
growing recognition of the potential therapeutic benefits of cannabis, leading
to increased demand for medical cannabis products. This favorable attitude
towards cannabis creates a conducive environment for the growth of the cannabis
market in the country.
Moreover, Germany's robust
healthcare infrastructure plays a crucial role in supporting the distribution
and usage of medical cannabis. The country's healthcare system is known for its
efficiency and accessibility, ensuring that patients can easily access medical
cannabis products when prescribed by their healthcare providers. This
infrastructure facilitates the smooth flow of medical cannabis through the
supply chain, further contributing to Germany's position as a dominant player in
the European cannabis market.Germany's well-established medical cannabis
program, widespread acceptance among its population, and robust healthcare
infrastructure all contribute to its expected dominance in the European
cannabis market.
Recent Developments
- In July 2022, Cann Global successfully launched its
natural CBD and hemp skincare brand, Fuss Pot, in France. Fuss Pot offers two
distinct skincare ranges: a hemp-based line and a CBD-based line.
- In August 2022, Green Monke forged a partnership with
the renowned brand, Cookies, to develop and introduce cannabis-infused
beverages at Cookies retail locations. This collaboration will later extend its
reach to Europe.
- In May 2020, Tillray proudly announced its attainment
of GMP certification, in accordance with European Union standards. This
certification enables the facility to manufacture cannabis extracts in-house
and export finished cannabis products, facilitating the company's expansion
efforts.
Key Market Players
- Bedrocan
Cannabis Corp.
- Aurora Cannabis
- Canopy Growth
- Aphria Inc.
- Demecan GmBH
- Tilray Inc.
- Cronos Group
|
By
Product Type
|
By
Compound
|
By
Application
|
By
Country
|
|
|
- THC-Dominant
- CBD-Dominant
- Balanced
THC & CBD
|
|
- Germany
- Croatia
- Luxembourg
- Italy
- Greece
- Denmark
- Belgium
- Malta
- Netherlands
|
Report
Scope:
In this report, the Europe
Cannabis Market has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
- Europe Cannabis Market, By Product Type:
o
Flower
o
Concentrates
- Europe Cannabis Market, By Compound:
o
THC-Dominant
o
CBD-Dominant
o
Balanced THC &
CBD
- Europe Cannabis Market, By Application:
o
Medical
o
Recreational
- Europe Cannabis Market, By Country:
o Germany
o Croatia
o Luxembourg
o Italy
o Greece
o Denmark
o Belgium
o Malta
o Netherlands
Competitive
Landscape
Company
Profiles: Detailed analysis of the major companies present in
the Europe Cannabis Market.
Available
Customizations:
Europe Cannabis Market report
with the given market data, Tech Sci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company
Information
- Detailed
analysis and profiling of additional market players (up to five).
Europe
Cannabis Market is an upcoming report to be released soon. If you wish an early
delivery of this report or want to confirm the date of release, please contact
us at [email protected]