Germany’s Medical Cannabis Market is experiencing unprecedented growth. Company executives in the US have reported sales gains of as much as 450% following recent reforms. As a conservative new government is about to come into power, questions are being raised regarding the market’s future.
“The market is on a constant growth that is overwhelming,” said Constantin von der Groeben, founder of German cultivator Demecan, during a roundtable with Pablo Zuanic of Zuanic & Associates on cannabis market growth in the country following recent national elections. We Germans are known to be cautious people. “We are always prepared to fail.” Now we should be ready to succeed.”
Von der Groeben admitted that despite the growth of domestic production, imports still dominate. “I would say it’s still about 80%.” When I only have the capacity to cultivate 4,2 tonnes (4,6 tons), this means that I will still be importing over two-thirds.
According to figures released by the Federal Institute for Drugs and Medical Devices in Germany, which was first reported on by Cannabis Business Times In the last quarter, imports grew by 53% from previous quarters to 31,691 kilos.
Von der Groeben said: “In Canada you get everything.” It is possible to get quality products at a very low price and also premium crafts. Canada would be my first stop, but there are other nations that have made great strides. “I haven’t yet seen the super-great craft products coming from Portugal, South Africa, or Colombia but they will at some point.
Stefan Fritsch, CEO of Grünhorn Group, which operates an online pharmacy and wholesale businesses, said his pharmacy experienced nearly 100% growth while his wholesale division saw 450% sales growth.
Fritsch estimates that “60% of medical cannabis prescriptions are written by telehealth and 40% in doctors’ practices.”
When the regulations suddenly changed last April, he said, “I was with my family and my IT team called me on Easter … and they were like, ‘We don’t know what to do. The 2,000 new orders came from nowhere.
A year on, it is clear that the marijuana industry is no longer content with selling only high-THC product.
Mielcarek noted that, “a year ago, potency was king. I believe we’ve become more diversified, and people look at more than the potency claims.” Von der Groeben countered, saying the high-THC variety still dominates sales.
Fritsch notes that the price of marijuana is beginning to drop as the legal market matures. Fritsch also mentions the rise in “price-comparison sites” and “a new ultra-cheap section” before the legalization.
Industry leaders were also confident that, despite the Christian Democratic Union signaling its intentions to rollback marijuana reforms, the medical cannabis market will be largely protected against political whims.
Sascha Miedlcarek is the CEO of Canify AG. The company operates an GMP certified manufacturing facility. It was actually the Christian Democrats that started the market for medicine cannabis. “There are voices from the Christian Democrats that are more progressive in terms of medicinal regulation.”
He added, “If you were to be invested into pillar two (adult-use/recreational cannabis), that might be a bit more of a concern. Again, nothing has been heard as of yet. There will be more important things for the government that is not even in charge to do than rescinding any cannabis regulations. No concern at all about medical cannabis, and no knowledge of the eventual consequences on clubs under pillar 2. However, it was never our intention to invest money in this area. We feel more of a tailwind.
Mielcarek announced that his company had expanded its network of suppliers to include “25 providers from five continents”, to help meet the booming demand.
They are more concerned about a continued growth than a political backlash. Zuanic then asked the executives if any of them were changing anything due to their election results. They all responded “no changes whatsoever” or “no significant changes.”
By assuming the current trends of growth, von der Groeben predicts that by 2020, Germany could have an estimated 100 tons of medical cannabis. However, it is still way behind other U.S. States like Florida with a much smaller population and a higher consumption of cannabis.