The Rise of the Cannabis Industry in Europe

Cannabis is gaining legal ground in Europe, increasing expectations for higher CBD product innovation and sales. Here’s a look at the European cannabis industry now and where it’s headed in the next decade.

How Big is the European Cannabis Market? 

The cannabis industry is proliferating worldwide, and European countries are no exception. The market continues to show promise in its expansion across Europe, with projections currently showing the total market value reaching USD 36,997.1 million by 2027, up from USD 3,498.1 million in 2019. 

Experts attribute the industry boom to evolving regulations, specifically for medical cannabis and products derived from the substance. Because of the changing legal climate, people have begun taking up opportunities to cultivate, process, and trade cannabis products throughout the region. One of the fastest-growing sectors is that of CBD retail, especially in online spaces. 

Because of the unique accessibility in buying cannabis-derived items via the internet, this corner of the market is growing at a much faster rate than others. 

Of course, the conception of Astral Health, formed by the joining of the European Cannabis Holding (ECH) and Miller & Miller Chemical Ltd., jumpstarted industry growth for medical cannabis, too. This formation particularly spurred expansion in:

• Germany
• Italy
• Spain
• France

Shortly after Astral Health’s creation was announced in May of 2019, the public expected these countries to announce participation in medical cannabis distribution.

Recent years have seen a significant rise in cannabis startups. From sole proprietorships to massive corporations, companies emerging on multiple levels have all contributed to one of the world’s swiftest ballooning cannabis industries. 

Popular Types of Cannabis-Derived Products in Europe

According to the United Nation’s International Narcotics Control Board (INCB), the United Kingdom (UK) was the leading exporter of cannabis-derived products as of 2018. However, most of that was in the form of the drug Sativex, used for treating muscle stiffness and spasms from multiple sclerosis. 

Interestingly, this was before legalization began. It’ll be interesting to see how the market shapes itself following expanded legalization in recent years. 

Market research shows that the European cannabis market can be divided mainly into flowers and concentrates, although other product types are available. As many might expect, cannabis flowers represented the largest portion of the market. Yet, experts expect concentrates to rise sharply within the 2020-2027 forecast. 

Further, you can interpret the European cannabis market into medical vs. recreational and THC-dominant vs. CBD-dominant. In both cases, the former (medical and THC) comprises the larger share of the market. Still, researchers predict that the CBD sector will grow the fastest during the forecast period. 

Here’s a closer look at some specific kinds of cannabis products available in the European market. 

CBD Oil

Unfortunately, the legality of CBD throughout Europe is quite complicated. Many countries are moving toward the legalization of this cannabinoid, whereas others stubbornly retain criminalization and strict statutes. This is discussed more in detail below.

One of the main reasons many countries have legalized CBD is that it’s a better medical or supplemental alternative than THC. CBD does not impose the same intoxicating effects as THC. Instead, many use it for managing anxiety, pain, and other conditions. 

The most substantial evidence exists for CBD’s efficiency in treating epilepsy symptoms. Currently, there is insufficient evidence for how effective it is for treating conditions like Crohn’s disease, diabetes, and others. 

Topical and consumable CBD products, such as CBD oil, are best for these applications. This is why the food and beverage industries have hit the ground running with this product type, evident by aggressive marketing campaigns. The European CBD oil market is expected to grow by 36.7% by 2027. 

Concentrate and Dry Herb Vaporizers

Vaporizers containing concentrated CBD oil and compatible for use with the dried flower are available throughout Europe. European investors have been following the example of their American counterparts, fueling the economic growth of this product variant.

In fact, it was vaporizers that inspired renewed hope in Europe’s CBD market. In 2020, the French e-cigarette company known as KanaVape was prosecuted for their production and distribution of CBD oil derived from whole hemp plants. 

France prohibits selling CBD extracted from whole hemp plants, allowing extraction from the seeds and fiber only. Since KanaVape’s products were legally extracted in the Czech Republic, the decision brought lots of anger and frustration from market participants and supporters. 

The political conundrum eventually led to the Court of Justice of the European Union (CJEU) ruling that CBD is not a narcotic drug, based on the fact that it “does not appear to have any psychotropic effect or any harmful effect on human health.” 

The CJEU also added that KanaVape could not legally be prosecuted for extracting their product legally in another EU Member State. The decision showed just how strict France is willing to be in managing its local CBD industry.

Yet, it strengthened optimism and confidence for distributing vaping products like the Storz & Bickel Volcano vaporizer. Still, you’ve got to make sure that you’re using your e-cigarette in a legal region to avoid any legal ramifications. 

In Which European Countries is CBD Legal?

As mentioned earlier, CBD’s legality changes can be quite confusing, depending on where you are in Europe. To make things as clear as possible, here’s a list of the countries that have legalized the use of the cannabinoid:

• Austria
• Belgium (it’s technically illegal, but you can buy it from a pharmacist with a prescription)
• Bulgaria
• Croatia
• Cyprus
• Czech Republic
• Denmark (you need a prescription)
• Estonia (needs less than 0.2% THC)
• France
• Germany
• Greece
• Hungary
• Ireland (only legal if cold-pressed)
• Italy (prescription only)
• Latvia (requires less than 0.2% THC)
• Liechtenstein (not explicitly banned, needs less than 1% THC)
• Lithuania
• Luxembourg
• Malta
• Netherlands
• North Macedonia
• Norway
• Poland
• Portugal (you need a prescription)
• Slovenia
• Spain
• Switzerland
• Ukraine
• United Kingdom

Despite there being several countries working toward potential CBD market growth, the areas with the most promise include Germany and the United Kingdom. By 2025, they’re expected to grow by more than USD 3.57 billion and USD 3.32 billion, respectively. 

Conclusion

The cultivation and distribution of cannabis have boomed throughout the world. Yet, the European market shows unique potential, thanks to several countries’ enthusiasm for legalizing the herb. Hopes are high that this growth will continue, especially for products like CBD oil and vapes. 

Share this story

Tell us what you think on our Facebook page