On April 1, 2024, Germany passed the Cannabis Act (Cannabisgesetz, CanG), legislation that reclassified cannabis as a non-narcotic. These actions prompted immediate growth within Germany’s medical cannabis market, including ease of administrative burdens, an increase in patient access, and reinforcement of the country’s import of medical cannabis supply. Will the legal framework established by CanG be enough to ensure long-term success and keep the illicit market at bay?
RELATED: Six European vacation destinations that are weed-friendly
Ease of administrative burdens increases patient access
Prior to reclassification in Germany, there were up to 300,000 medical cannabis patients in the market. These patients needed to have a qualifying chronic condition, such as cancer, seizures and epilepsy, chronic pain, or multiple sclerosis, to be eligible for medical cannabis treatment. Under CanG, patients are no longer required to have a special narcotics prescription for medical cannabis, and physicians may prescribe it in the same manner as other medical treatments like high-strength ibuprofen.
Operators within the space predict that due to reclassification, the number of medical cannabis patients in the German market will climb from a few hundred thousand to a few million patients within the next year or two.
Innovation through telemedicine
Innovation will foster growth within the German cannabis market. German patients can now access low-cost consultations with physicians through telemedicine. For example, Bloomwell Group’s online platform covers the entire patient journey, allowing for requests for consultations with patient-preferred physicians, treatment preferences, selection of pharmacies, direct price comparisons, online payment, and fast delivery. German medical patients now have the convenience of consulting a doctor, selecting the type of cannabis treatment preferred, and having it delivered all within the comfort of their homes.
RELATED: Seven cannabis museums around the world
Competitive pricing for medical cannabis
Recently, telemedical cannabis company Bloomwell Group released a report on the state of Germany’s private, self-funded medical cannabis flower market following the landmark implementation of CanG. According to the report, more than 50 percent of the medical cannabis flower prescribed through the company’s medical cannabis platform is classified as “inexpensive” or “very inexpensive.” The average price per gram is less than 9 euros ($9.73). To put this in perspective, in the U.S., the average price per gram for medical cannabis flower ranges from $10 to $20, according to data from Nuggmd.
Illicit operators hold the lion’s share of U.S. and Canadian markets
Legalized markets in the U.S. and Canada have faced fierce competition from the illicit market. According to a report from Deloitte Canada, five years after the country legalized cannabis for recreational use, the illicit market is estimated to account for one-quarter to up to more than half of cannabis sales in Canada.
The situation is even more dire in the segmented markets of the U.S. According to Whitney Economics, as of 2023, 75 percent of cannabis sales in the $100 billion dollar cannabis market are illicit. Two-thirds of the cannabis sales in California, one of the most prominent state-led legalized markets in the U.S., are within the illicit market, and illegal operators control a $10 billion dollar market share. Legal sales dwarf in comparison as legal sales only reached $5.2 billion in 2023. Illicit operators often thrive in these markets due to a lack of regulatory oversight, lower costs such as no licensing fees or taxes, and more accessibility to obtain products.
Cannabis criminalization still present in Germany
With possession, home grow, and the establishment of non-profit cannabis clubs legalized with the passage of CanG in Germany, some have been skeptical as to whether the illicit market will use these allowances to gain market share. Clubs are already in the licensing process, though most likely for passionate cannabis consumers.
Per the law, German citizens may possess or carry up to 25 grams of cannabis for personal use. They can also grow a maximum of three plants in their place of residence. These adult-only establishments are limited to 500 members. Each member can be allotted a maximum of 25 grams of cannabis on one day and a total of 50 grams per month. Members must pay membership fees and actively participate in the cultivation process in order to receive cannabis from the club.
Even with the plants grown on site, these operations are highly regulated and cannot distribute cannabis to non-members and can not consume cannabis within the club or within 200 feet of the premises. The purchase and sale of adult-use cannabis remains illegal within Germany. Depending on the details of the matter, an offender can face fines and imprisonment under German law. Smuggling cannabis into Germany can also land someone in prison. Those who smuggle cannabis in through gang affiliation may face an aggravated prison sentence of up to a couple of years.
Safer, standard practices for medical cannabis
Similar to the U.S. and Canada, cannabis users in Germany use cannabis to help alleviate symptoms of common medical conditions. According to a 2022 study published in the National Library of Medicine, a substantial proportion of the North American population report using cannabis to improve or manage symptoms of medical or mental health conditions.
RELATED: Safer weed may require new rules – here’s why
The overall prevalence of self-reported cannabis use for medical purposes was 27 percent. Prevalence was higher in U.S. legal–recreational states (34 percent) than in U.S. illegal states (23 percent), U.S. legalized medical-only states (25 percent), and Canada (25 percent). The most common physical health reasons include use to manage pain (53 percent), sleep (46 percent), headaches/migraines (35 percent), appetite (22 percent), and nausea/vomiting (21 percent). For mental health reasons, the most common were anxiety (52 percent), depression (40 percent), and PTSD/trauma (17 percent). There were 11 percent who reported using cannabis for managing other drug or alcohol use, and 4 percent for psychosis.
My company, Bloomwell Group, a medical cannabis company based in Frankfurt, recently released its “The Cannabis Barometer: Motives, Concerns and Preferences of Cannabis Consumers in Germany” report, which surveyed German cannabis consumers. The report found that the vast majority – 94 percent – of German respondents reported they consume cannabis for at least one medical or health reason. The most common health-related issues consumers reported they use cannabis for were to help with sleeping disorders (50.4 percent) and stress relief (nearly 60 percent), followed by pain relief (35 percent).
According to the Bloomwell report, 10 percent of the survey participants acquired cannabis exclusively from a licensed pharmacy within the past year. And a large portion (79.6 percent) said they’ve had negative experiences with the unlicensed market or fear side effects or potential health risks from unverified products.
Medical cannabis in Germany is held to a higher quality standard than products supplied on the illicit market. Under German law, cannabis for medical purposes must meet the rigorous regulations of the European Union-Good Manufacturing Practice (EU GMP) certification and the Good Agricultural and Collection Practice (GACP). These manufacturing standards require oversight of safe practices across all stages of production.
Such regulations are in place to prioritize patient safety by minimizing risks of contamination, pesticide residue, and the presence of other harmful substances within the products. In addition, these standards help ensure the correct labeling, testing, and dosage of cannabis treatments. Contamination of medical treatments can lead to severe injury and even fatalities for sick patients. Incorrect labeling could result in a patient receiving an excess or insufficient amount of treatment to ease the symptoms of their ailments.
With these factors in mind, the German medical market differentiates itself from other legalized markets, such as adult use in Canada and the U.S. The highly regulated market is now poised for success and significant long-term growth under the implementation of CanG, which helped streamline and remove unnecessary burdens in the prescription processes, increased the availability and cost-effectiveness of treatments, and reinforced safe, standard practices across the value chain. Through innovation, companies have helped shepherd patients through the medical cannabis process and increased access for patients who are in need of this medical treatment.
*This article was submitted by a guest contributor. The author is solely responsible for the contents.