Germany’s Cannabis Sector Needs Key Improvements

Germany's Cannabis Sector Needs Key Improvements

Germany has established itself as a frontrunner in Europe’s legal cannabis market, particularly after the legalization of adult-use cannabis in April 2024. The country initially began its journey into legal cannabis with medical sales in 2017, transforming into a major hub for medical cannabis exports. In the first quarter of 2025, Germany imported over 37.223 metric tonnes of medical cannabis products, marking a 14.8% rise from the previous quarter and a staggering 457% increase compared to the same period in 2024, when imports totaled just 8.143 metric tonnes. Currently, approximately 2,500 of the nation’s 17,000 pharmacies offer medical cannabis products, attracting global entrepreneurs and investors who are eager to tap into this burgeoning market.

Despite this growth, several areas require attention to optimize Germany’s cannabis industry, especially in the adult-use segment. Here are five actionable strategies that lawmakers and regulators can implement to strengthen the sector:

1. Update EU Agreements: Before the adult-use legalization law was enacted, German lawmakers sought to establish a commerce model similar to Canada’s. However, the European Union’s existing agreements restrict sales to medical cannabis and research-based recreational sales. Germany, along with other interested member nations like the Czech Republic and Switzerland, should advocate for modernizing these agreements to allow full-scale adult-use sales. A coalition of countries committed to lobbying EU officials and educating skeptical member states could pave the way for necessary reforms.

2. Initiate Adult-Use Pilot Trials: Adult-use cannabis commerce pilot trials are essential for gathering data to inform national policies. These trials are part of Germany’s two-pillar legalization strategy. Similar trials in the Netherlands and Switzerland have shown no public health or safety issues. Delays in launching these trials in Germany, despite interest from multiple jurisdictions, hinder progress. Lawmakers should facilitate these pilot projects, allowing local governments to implement them based on successful models from other European nations.

3. Increase Cultivation Association Approvals: Starting July 1, 2024, adults in Germany can apply to join cannabis cultivation associations. These associations allow members to cultivate cannabis collectively. Currently, 215 out of 626 applications have been approved, indicating untapped potential. By granting more approvals, Germany could significantly increase the number of cultivation associations, which could mirror Malta’s example of 19 operational associations for its population of about 570,000. Applying a similar ratio, Germany could support approximately 2,803 associations, enhancing local cultivation and distribution.

4. Broaden Product Availability: The limited variety of legal cannabis products available in Germany restricts patient and consumer choices. In contrast, states like Oregon offer many product types, including pre-rolled joints, vape cartridges, and edibles. Currently, pre-rolled joints remain illegal in Germany, forcing consumers to prepare their own. This limitation creates a gap that the unregulated market fills, undermining both public health and the legal industry. Expanding the range of available products would align the legal market with consumer needs and reduce illegal sales.

5. Introduce Industry-Specific Funding Programs: The German government has historically supported various industries through public funding programs. By establishing similar initiatives aimed at the cannabis sector, the government could foster job creation, stimulate local economies, and increase tax revenues. Such support could help counteract the unregulated market and position Germany’s cannabis industry for long-term success.

Germany’s cannabis sector holds significant promise. By modernizing regulations, initiating pilot programs, expanding cultivation opportunities, broadening product offerings, and providing targeted government support, lawmakers can create an environment that benefits consumers, businesses, and the economy as a whole.

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