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Germany Leads The Global Medical Cannabis Explosion

Jun. 28, 2024 by SOMAÍ Pharmaceuticals

The entire cannabis community is abuzz with German legalization. Not only is this a massive windfall for cannabis producers around the world with access to markets in the European Union, but it’s also a regulatory call-to-order for every other country that has resisted adopting a more up-to-date approach to medical cannabis access. 

Already, countries like FranceSpain and Czechia are racing toward a more balanced approach to medical cannabis access. I expect additional countries to make announcements this year as well. The global medical cannabis explosion is imminent, and money is moving toward the EU and international markets.

Cannabis Industry Developments Within Germany 

If you’re a player in the German cannabis industry, you are likely having sleepless nights with all the action. Reports from all the top groups indicate a massive influx of scripts and patient demand, as well as increased corporate demand for everything from flower to extracts. 

German Cannabis Company Growth

We can watch as cannabis companies in Germany navigate the massive increase in consumer demand. Here are notable German market movements:

  • Germany’s largest compounding pharmacy, Gruenhorn, is showing dramatic increases in demand. 
  • Notable brand and clinic Canify is reportedly stocking up on more products. 
  • Large clinic and marketplace Bloomwell is signaling on social media that they are receiving more patients. 
  • Large flower distributors like Cansativa are being flooded with flower requests. 

No matter where you look in Germany, the markets are surging.

Significant Opportunities For Global Cannabis Investors

Investors are back and bringing massive capital into European and global markets. 

Cannabis Funds Prepare For An Influx Of Investments

One of the largest cannabis funds, Artemis Fund Managers, alongside Tenacious Labs, announced the creation of “Europe’s Largest Cannabis Investment Platform” after Germany passed its cannabis reform. 

Canadian Cannabis Market Positioning Regarding Germany

Almost every Canadian company is rewriting its strategy to tackle Germany’s nascent market and handle additional countries that will legalize cannabis in the coming months and years. Even Canadian stocks show volume increases, especially those that have proven inroads into Germany and the EU. Tilray Brands, for example, is showing massive volume gains. 

Private Cannabis Investors Support EU-GMP Facilities

Private investors are also back in full force because Germany’s European Union Good Manufacturing Practices (EU-GMP) infrastructure is far too small to service the increasing demand. Asset values of EU-GMP cultivators, manufacturers, and localized distributors are all on the rise as the tide turns in favor of those brave souls who focused their investments on EU-GMP compliantce  products. 

EU-GMP Suppliers Are Poised To Ramp Up Production

German legalization has been coming for a long time for all EU-GMP producers and medically compliant companies. It’s time to reap the benefits of these investments. 

Complying with EU-GMP’s stringent pharmaceutical standards takes upwards of three years. Producers have employed massive workforces to comply with pharmaceutical standards while waiting for improvements in consumer access that would create increased volumes. Many groups have even gone bankrupt or divested while waiting for this change. 

Although rising tides may raise all boats, only the strongest EU-GMP manufacturers will capture the majority of market share as they have maintained the best distribution channels and gained physician trust by proving their adherence to the highest quality standards. Germany’s opening gave the medical cannabis industry a much-needed boost that could not have come at a better time.

The Future Of Global Medical Cannabis

Medical cannabis balances on three main pillars, and all are happening at the start of 2024. 

First, Germany’s removal of the narcotics label from cannabis is the largest EU-driven event of 2024. Second, the United States Department of Health and Human Services (HHS) report demonstrates that a leading health organization has studied cannabis and found it is safe and has medicinal applications for over a dozen implications. Finally, the expected U.S. rescheduling of cannabis to Schedule III will ultimately propel regulation past Europe and through the global markets. 

Prepare For Global Medical Cannabis’ Effect On All Markets

If you are an EU-GMP-compliant company, you will benefit significantly from regulatory changes sweeping the globe. With these developments, it will be difficult for any regulator in any country to argue against global cannabis access for their population. 

Cannabis business is never a straight line, despite the industry sales figures and production volumes increasing beyond expectations every single year. Investors have always been ahead of the curve, and in many cases, like Canada, capital came too far ahead of regulatory change. 

For the first time since the U.S. and Canada kicked off the recreational cannabis boom, the global cannabis industry is taking off again as a worldwide medical cannabis explosion takes hold. Nearly every country is talking about medical cannabis reform, even Asian and Arabic countries that were thought to perhaps never open. Hold onto your seats; this is one inflection point that cannabis entrepreneurs cannot miss!