Legal Cannabis Market in Germany to Reach $4.6 Billion in 2034

According to a new market analysis by researchers at The Niche Research, the legal cannabis market in Germany is expected to reach an impressive $4.6 billion by 2034. The dynamic growth of this sector is associated with a number of new regulations and growing public interest.

The first steps towards legalising the use of cannabis by adults were adopted on April 1st, 2024, opening a new chapter in German cannabis legislation by allowing adults to legally possess and cultivate the plant.

However, before recreational use was legalized, Germany already had a well-developed medical cannabis market. The introduction of medical cannabis laws allowed patients to use the plant for therapeutic purposes. This made Germany a leader in Europe in terms of medical cannabis use, creating a solid foundation for further liberalization.

Growth of the home growing legal cannabis market

Interest in home-grown cannabis is growing rapidly in Germany. A study by Pronova BKK found that 51% of respondents expressed a desire to grow cannabis at home. This trend shows that German consumers are open to the possibility of producing cannabis themselves for personal use.

Additionally, YouGov’s survey results revealed that 7% of German adults have already purchased cannabis seeds or clones , with 11% planning to do so in the future. The legalization of home-grown cannabis has led to a significant increase in seed sales across Europe, which is evidence of the growing popularity of this practice and has the potential to further expand the cannabis market in Germany.

The importance of medical cannabis

Changes to medical cannabis laws have been key to the development of the German cannabis market. The removal of cannabis from the list of narcotics and the lifting of limits on domestic production have significantly improved access to medical cannabis. This has allowed doctors to more easily prescribe cannabis to patients, and domestic production has been able to expand freely to meet growing demand.

In 2023, Germany imported a record 32,398 kg of medical cannabis, an increase of 26.6% compared to 2022. This data shows how rapidly the demand for medical cannabis is growing in the country.

The forecasts for the growth of medical cannabis patients are also very promising. The number of medical cannabis patients is expected to increase from 0.03% to 1% of the German population in the coming years, meaning that more and more people will be able to benefit from cannabis-based therapy.

Economic benefits of the legal cannabis market

Legalization of cannabis in Germany will bring huge economic benefits. According to forecasts by Heinrich Heine University in Düsseldorf , legalization of cannabis will create as many as 27,000 new jobs. This is not only a chance for economic development, but also for reducing unemployment in the country.

One interesting plan is to create up to 3,000 cannabis social clubs in North Rhine-Westphalia, each of which will be able to serve up to 500 members. Each of these clubs will create new jobs, which is just one of many sectors of the economy that will benefit from legalization.

The overall impact of the legal cannabis market on the German economy will be enormous. New jobs, a growing medical cannabis sector, and increased sales of hemp seeds and products will all contribute to a significant increase in state revenue.

Future prospects

The lega cannabis market in Germany has huge growth potential. According to Euromonitor International, the global cannabis market is currently worth €51.4 billion and is expected to grow to €60 billion by 2025. Germany, as a leader in Europe, has all the predispositions to become a major player in this market.

The opportunities for further development of the legal cananbis market in a global context are enormous. Germany could become a centre for hemp production and distribution in Europe, attracting investors and innovative companies from all over the world.

The German legal cannabis market is at the beginning of a dynamic path. With favorable regulations, growing interest in home cultivation and a strong medical cannabis sector, Germany is poised to become a leader in the global cannabis market. The future looks bright, and the development of this market will bring numerous economic and social benefits.

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