Following the adoption of the CanG and the associated MedCanG Act, the German medical cannabis market is witnessing significant growth, with German medical cannabis sales expected to reach €420 million in 2024, rising to over €1 billion by 2028.
Prohibition Partners published The German Cannabis Report today. It is fuelled by many factors. One of them being the removal cannabis from Germany’s narcotic drug schedule, easing bottlenecks in its distribution, prescription, and dispensing. It is this that has led to the increase in patients, prescriptions and the number of operators who provide medical cannabis via telemedicine.
BfArM, The Federal Institute for Drugs and Medical Devices, has removed its tender process for medical cannabis production in Germany. New cultivators can now apply for a cultivation licence, thus opening up the market for more competition.
The Patient Population is Growing
In Germany, doctors are free to prescribe cannabis as a medical treatment for conditions they believe will help patients. In addition, policy changes made recently, like removing cannabis off the list of narcotics, should improve patient accessibility.
In Q3 of 2023, the volume sold by pharmacies in medical cannabis increased about 30% compared to Q3 of 2022. After the April 2024 implementation of new cannabis laws, the number of patients increased further.
The reimbursement of expenses
In Germany, the reimbursement scheme for medical cannabis by health insurance companies is well-established. This public funding accounted approximately for half the market by 2023.
The German Federal Joint Committee G-BA approved proposals in July 2024 to streamline reimbursement processes, which is likely to further facilitate access for many patients, as medical marijuana becomes more affordable.
Domestic Cultivation & Imports
The removal from the process of a tender has made the agriculture market more open to competition. The removal of the tender process will lead to an increased domestic production and reduce Germany’s dependence on imported cannabis. Following the CanG Act’s adoption, however, medical marijuana imports increased by 44%, with the Q2 2020 medical cannabis imports hitting an all-time high at 11,706 kilos compared to the Q1 2010 imports.
Alex Khourdaji (senior analyst, Prohibition Partnerships and coauthor of the study) commented that “Germany’s marijuana market is at a crucial point at this time.” CanG Act has brought about a range of changes for both businesses and consumers. Success of these reforms is dependent on a constant adaptation to changing circumstances and the commitment to find a balance among public health, economic growth, and social responsibility.
Vladimir Kofcegarski is the Chief Sales Officer of PHCANN, which sponsored the report and will sponsor the upcoming MEDCAN24 Executive Summit, in Berlin. He said that the recent German legislation marked a new era for the cannabis industry. The cannabis industry has a unique opportunity to drive innovation, growth in economics and responsible regulations. Germany is the leading de-stigmatization force in Europe for the cannabis industry. We now have tools and a responsibility to create foundations and standards that foster sustainable practices.
You can now download the German Cannabis Report here for free. The report comes with a comprehensive German data set as well as a market analysis.