In terms of the new legal cannabis market, Europe and the United States are the clear leaders. In both regions, there are significant changes in policy and regulation, opening up new business opportunities to entrepreneurs, investors, and industry service providers.
Comparing the regulatory frameworks of U.S. States with those in Europe
In that they are both patchworked together with laws and regulations, the United States and European markets have a lot in common. The federal government in the United States has its own laws and regulations. State-level markets also have their policies. In the same way, in Europe, there are various policies and agreements that regulate cannabis activities, and national markets also have their own laws. Both regions have a patchwork system that creates confusion, headaches, and frustration for consumers, government members, the cannabis industry and even patients.
How many people are in the market?
Gallup surveying indicates that 15 percent of American adults identify as cannabis consumers. Polling did not distinguish between medical cannabis and non-medical marijuana use. Therefore, the statistics are likely a mix of both. Gallup’s reported cannabis use rate translates to approximately 40 million marijuana consumers in the United States.
The European Union Drugs Agency estimates that 8,7% of EU adults have consumed cannabis in the past year. This is about 25,000,000 people. The EUDA estimate could be too conservative. Many consumers may not have reported their cannabis consumption for fear of punishment. EUDA does not also include all European countries in their estimate. Whitney Economics calculates that Europe has between 33.4 and 76.7 millions cannabis users.
Comparing the adult-use landscape: states and nations
Comparing adult-use cannabis commerce is arguably the most significant difference between cannabis industries in Europe and the United States. At present, 24 U.S. States have legalized adult-use cannabis. Only Virginia prohibits sales to adults, but recreational sales will begin in 2027.
Adult-use sales are legal in every state, but interstate commerce of adult products is illegal. Washington D.C. has adopted legalization for adult use, but recreational sales are still prohibited in the United States due to federal adult-use prohibition. The federal government tolerates state-level cannabis recreational commerce.
Despite the fact that multiple countries legalized cannabis, European Union agreements prohibit national adult-use sales. Malta, Luxembourg Germany and Czechia all have national legalization of adult-use marijuana. Each country allows personal cultivation, possession and use. Malta, Germany, and Luxembourg also allow noncommercial cultivation associations that are members-based to be active, allowing them to legally source cannabis products.
The Netherlands and Switzerland: Research Hubs
In the Netherlands and Switzerland authorities have allowed regional pilot tests for adult-use Cannabis commerce. Pilot trials for adult cannabis use are being conducted in the Netherlands and Switzerland. They involve research and include adult consumers, producers of cannabis, and retailers. While European Union agreements ban national adult use commerce, they do permit limited adult use commerce to be conducted for research. Germany also has a model for legalization that involves pilot trials, but no pilot trial has been approved so far by Germany’s federal government.
European Patient-Paid Model versus European Medical Coverage
Medical cannabis is regulated and sold differently in Europe and the United States. These differences are subtler than those for adult-use. In European markets, medical cannabis treatments are usually covered by the statutory health care insurance, while in America, patients must pay out of pocket for these therapies.
Cross-Border dynamics: Imports and exports as well as supply chains
Imports and exports are another major difference in medical cannabis between Europe and the United States. Many European countries permit medical cannabis to be sold on other legal markets. Germany is the most notable example, with 218 tonnes of medical cannabis imported into Germany in a calendar year. The United States, with forty states, Washington, D.C., and Washington, D.C., having legalized medical cannabis in one form or another, reliant on registered patients who rely almost exclusively on local medical cannabis products.
U.S. Rescheduling of Events and its Global Consequences
Despite all this, the United States is experiencing a major shift that will undoubtedly have a profound impact in other parts of the world, especially in Europe. In the United States, cannabis is being reclassified from Schedule I to Schedule III. After that, cannabis companies in the United States can expect to see a substantial increase in their tax benefits and access to financial resources. They will also be able expand and eventually join the medical cannabis export markets around world. The United States cannabis market and the European cannabis market will be more interconnected, which is sure to change the landscape of the industries in both areas.