In Cannabis projects for medicinal use there are 2 countries that are recurrent, Canada and Germany. A large part of the companies worldwide are Canadian, so it is very common that behind any Cannabis project for medicinal use there is a Canadian company. On the other hand, the large European Cannabis market is Germany, since the legalization of cannabis for medicinal use in 2017. In this article we will focus on the keys of the German market, to see a model that could be applied in Spain in a near future.
German market data
Germany is the most populated country in the European Union (EU) with a population of 83.7 million inhabitants, with a long tradition of consuming natural remedies from plants, with 9.6 million potential cannabis consumers representing an annual consumption of 1.7 million Kg of dried flower, with an average price per gram of flower of 9.54 Euros.
Germany is the first market at the European level and the third market for medical cannabis worldwide behind the United States and Canada.
The medical cannabis market in the European Union was estimated last year between € 230 and € 280 million. In the first half of 2020, sales of medicinal cannabis in Germany amounted to around 75 million euros.
Situation at the regulatory level
Some of the keys at the regulatory level in Germany:
- Medicinal Cannabis has been legal since 2017.
- In the Germany agency (BfArM) a specialized agency for Cannabis (Cannabisagentur) has been created for the supervision and licensing of medicinal cannabis.
- The objective of the German Cannabis Agency is not only to regulate the medical Cannabis market, but also to promote the cultivation and the German Cannabis industry
- In 2019, the German Cannabis Agency put up to auction 10,400 Kg to grow in Germany that will be bought by the German authorities for its health system. These 10,400 Kg are distributed over 4 years with an annual purchase of 2,600 Kg distributed in 13 batches of 200 Kg each year. The first harvest of German Cannabis is expected by the end of 2020. The companies that have been awarded the first contracts have been Aurora Produktions GmbH, Aphria Deutschaland GmbH, Demecan GmbH, both Aurora and Aphria are subsidiary companies of Canadian companies.
- Manufacturers, retailers and pharmacies will not have to buy medical cannabis exclusively from the state cannabis agency, but will also be able to do so directly from importers, which makes it a very interesting market for the rest of the companies that are in the market. In fact, Germany imported 4,126 Kg of medicinal Cannabis during the first half of 2020.
- On the other hand, Germany is also leading the way in terms of quality specifications, since the German Pharmacopoeia has published two monographs on dried flower and extract
Germany is a good example of how to regulate and take advantage of this business to benefit patients and on the other hand to generate an associated industry. Germany is still a fertile ground for investment, not only in terms of its potential market, but also for the benefit of a liberal state where business practices maintain a traditional reputation for transparency and efficiency.
The medicinal benefits of cannabis are scientifically proven and it is probably a matter of time that its use for therapeutic purposes will be regularized in Spain. Having a reference such as Germany to know which is the roadmap to follow in this process and to learn from its mistakes is a very good opportunity to implement this new product within our system in the most optimal way.
- Posted by Klinea
- On 8 October, 2020
- 0 Comments