Imports of medical cannabis in Germany reach 20.1 tons in the third quarter of 2024
The revision of the narcotics law has driven growth, but the market still faces challenges for expansion
The aforementioned medical cannabis in Germany totaled 20.1 tons in the third quarter of 2024, a significant growth compared to previous periods. The increase reflects changes in the revised narcotics law in April of this year, which facilitated access to medical cannabis in the country. However, the number of users remains below 0.3% of the population, limiting a market with significant potential for expansion.
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Increase in rejections and market dynamics
According to Pablo Zuanic, an analyst at Zuanic and Associates, about 40% of historically imported cannabis was rejected or re-exported, while pharmacies on average rejected 60%. In the third quarter of 2024, with importers increasing stocks, tax rates are likely to rise, prompting pharmacies to acquire between 50% and 55%.
Of the 20.1 tons imported, it is estimated that 10 to 11 tons were purchased by pharmacies, double the levels prior to the April reform.
Market share redistribution
Canada maintains its lead as the top exporter, with 8.1 tons sent to Germany in the third quarter, but its market share has dropped from 59% at the beginning of the year to 40%. Portugal increased its share to 21%, followed by Denmark with 13%. Spain and Uruguay each developed with 5%, while the Netherlands' share fell to 2%.
Market potential and challenges
The German medical cannabis market has an estimated annual value of €352 million ($375 million). According to Zuanic, a penetration rate of less than 0.3% of the population is still low, but the potential is immense. “If we reach a 1% rate, like in Canada, the market could grow four to five times,” he said.
Nevertheless, growth depends on overcoming barriers such as limited supply and complex prescription systems. “New formats and greater consistency in quality and price are essential to accelerate market expansion,” said Zuanic.
Despite the challenges, optimism persists. “We are just at the beginning, but the German medical cannabis market can advance as the supply chain stabilizes,” concluded the analyst.
With information from Benzinga