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Below is a complimentary excerpt from an institutional research note written by our Cannabis analysts Howard Penney and Daniel Biolsi. If you are an institutional investor interested in accessing our research email sales@hedgeye.com |
In Germany, demand for medical marijuana imports are set to grow by 37%
A recent press release from Germany’s federal government estimates that medical marijuana imports are expected to reach 28,455 kgs in 2020, a 37% increase YoY.
Dr. Armin Prasch, Head of the BvCW (German cannabis industry association), commented, “With the cannabis industry, we see an ongoing, growing, and stable market in the medical cannabis space. This confirms our prognoses. We attribute the expected increase of approximately 37% compared to 2019 to the increasing knowledge of doctors in therapeutic use and increased demand on the part of patients, which could be explained by the changing public perception of the possible uses of cannabis as a therapeutic agent” (Translation).
While medical marijuana has been available by prescription since March 2017 in Germany, the country’s medical marijuana market is still dependent on cannabis grown abroad.
The German government has limited domestic cannabis production to 2,600 kgs per year, not nearly enough to meet demand in the country. Germany’s reliance on imports makes it an exceptionally attractive market to Canadian LPs (APHA, TLRY, CRON, CGC, and ACB) seeking to gain a foothold in the EU and offload excess inventory.
The German Federal Institute for Drugs and Medical Devices (BfArM) has authorized companies from Canada, the Netherlands, Austria, Switzerland, Portugal, Spain, Israel, Colombia, and Uruguay to export medical marijuana to Germany.
