CBD Market in Spain grows 35% per year, but stalls in regulation

The CBD market in Spain has gone from non-existence to an annual turnover of €136 million in less than a decade, consolidating a sustained average growth of 35% per year and surpassing the mark of 500 specialized stores in operation. 

The information comes from the Spanish portal Cáñamo, which analyzed the recent evolution of the sector in the country. Despite significant progress, the market still operates well below its potential due to a regulatory framework considered outdated, based on regulations dating back to 1967.

WHO and European decision unlock the market

According to Cáñamo, the turning point for the sector came from 2017, when the World Health Organization (WHO) declared that cannabidiol (CBD) is not harmful nor addictive. Three years later, the Kanavape Judgment from the European Court of Justice reinforced this understanding by establishing that CBD is not a narcotic and that member states cannot prohibit its commercialization when legally produced in another European state. The decision paved the way for market expansion and provided legal support for commercial operations.

From €7 million to €136 million: the numbers behind CBD's growth

Data compiled by the Canamo portal illustrate this rapid trajectory. Sector turnover jumped from €7 million in 2018 to €14 million in 2021, reaching €81 million in 2022. By 2024, the specific CBD segment reached €136 million, within a legal cannabis market that moves around €513 million in Spain, also considering grow shops and medicinal cannabis.

Over 500 stores, 250 brands, and thousands of jobs

According to the survey by Cáñamo, the sector currently includes between 500 and 515 specialized stores, over 250 active brands, about 60 companies in the medicinal and CBD segment, and generates between 6,700 and 7,000 direct jobs. The activity is mainly concentrated in the Mediterranean axis, with Barcelona as a business hub, Valencia as a production and distribution center, and Andalusia leading cultivation.

Spain produces a lot, but consumes little

Despite ranking fifth in the European CBD market, behind Germany, the UK, Switzerland, and Austria, Spain faces a structural contradiction. As highlighted by Cáñamo, the country is one of the world's largest producers of medicinal cannabis but exports almost all production, while internal access remains limited due to regulatory barriers.

Regulation will define the market's future by 2030

Projections for 2030, also according to Cáñamo, depend directly on regulatory decisions. A more open model could lead the medicinal market to €335 million, while a restrictive approach would keep the sector virtually stagnant. A Royal Decree in progress, expected to be approved in 2025, could signal the beginning of a new phase, although experts interviewed by the portal believe that the proposed changes still fall short of the real potential of the Spanish market.

With information from Cáñamo.