Cannabis - Industry - Europe Market, Share and Trends 2023-2028

Summary of Cannabis

As the European cannabis industry continues to develop across more countries, strategic investments in logistics infrastructure and innovative solutions will certainly help support long-term accessibility and responsible growth of the legal market on the continent. Europe’s regional cannabis market size is projected to grow from $7.95 billion in 2023 to $18.79 billion by 2029, at a CAGR of 14.31% during the forecast period.

Temperature-controlled transportation and specialized facilities for medical cannabis storage across varying climates. Secure, compliant packaging and labeling to meet requirements in each nation while preventing diversion between jurisdictions.

Inventory management and seed-to-sale traceability systems using blockchain or other technologies to satisfy evolving regulations. Cross-border delivery solutions optimized for medical and research shipments moving throughout Europe.

Data analytics to provide industry stakeholders insights into emerging demand trends and help shape supply planning as new programs launch.

As with any new industry – close partnerships between logistics providers – governments and licensed operators will be important to develop a sustainable and compliant European cannabis supply chain serving both patients and researchers. Strategic planning today can help smooth this process and deliver long-term benefits across the region.

Recent Trends and Insights

Around 1.3 % of adults in the European Union (3.7 million people) are projected to be daily or almost daily users of cannabis and this is the group most likely to encounter problems associated with this drug.

There remains – however – a need to understand better the kinds of problems experienced by cannabis users, as well as the referral pathways and treatment options available for those with cannabis-related problems. Cannabis is reported to be responsible for almost a third of all drug treatment admissions in Europe.

This finding is difficult to interpret– in part because of the wide variety of interventions provided to cannabis users, some of which may be directive referrals from the criminal justice system. A recent EMCDDA review found an increase in the availability of psychosocial treatments, such as – cognitive behavioural therapies, to those experiencing problems with their cannabis use. These interventions may sometimes be delivered through telemedicine or digital applications.

There are ongoing clinical trials in several European countries examining the effectiveness of cannabis and cannabinoid therapies against ailments. To assure patient access and safety – European nations have begun taking moves towards legalizing medical cannabis – creating licensing frameworks for the manufacture, distribution and quality control of medical cannabis products.

Cannabis potency and retail market prices are important factors in the European cannabis market. The potency of cannabis products varies widely across Europe, with some countries reporting higher potency levels than others. Retail market prices also vary widely across Europe, with some countries reporting higher prices than others.

Product Insights

Europe’s regional market was seen to be dominated by a strain of cannabis which is “Indica”. This strain dominated the market share because of its recreational and effective medicinal usage. Indica is poised for a strong growth rate in the European markets in the upcoming future. Trends in cannabis use at national level appear mixed. Of the countries that have produced surveys since 2020 and reported confidence intervals – a few reported higher estimates, few were stable and many reported a decrease compared with the previous comparable survey.

Recent analysis upon this market showed that herbal cannabis was used by 95 % of respondents who used cannabis in the last 12 months– compared with 32 % for resin, 25 % for edibles and 17 % for extracts.

Medical marijuana uses the marijuana plant or chemicals in it to remedy diseases or conditions apart from the approved drugs, there is an increased interest in two cannabinoids which are delta-9-tetrahydrocannabinol and cannabidiol. Tetrahydrocannabinol is shown to enhance appetite, minimize fatigue and reduce muscle function issues while cannabidiol is effective for managing epileptic seizures, curing psychiatric illness and decreasing inflammation.

Legalizing recreational marijuana results in helpful regulation of a safe drug, without increasing potential negative consequences. The legalization of marijuana has various societal benefits as the rise in the economy without increasing taxes, creating thousands of job opportunities, stopping the racial differences in marijuana enforcement and freeing up scarce police resources. Legal recreational marijuana can end the costly enforcement of marijuana laws and debilitate the illegal marijuana market.

Key Companies

Some major players within this vast domain of industry are

• Juicy Fields
• Thankyoujane
• Vilosophy
• Cannable
• Storz & Bickel
• MedCann
• Nimbus health
• Cannaktiv
• EMMAC Life Sciences
• Tilray
• Alphagreen Group

Regional Analysis

The European cannabis market is experiencing significant developments due to various trends happening in favor of the use of cannabis which are driven by factors such as – policy and regulatory relaxation, increasing demand for cannabis products and advanced methodologies in the field.

As more people are growing aware of the benefits that can be achieved by systematic use of cannabis, it is perched for legalization within the region. Numerous reasons include – nausea and vomiting connected in relation to chemo, stiffness in multiple sclerosis, HIV/AIDS cachexia, neurotic pain, etc., aid to providing empirical evidence to the legalization of cannabis in and around Europe.

There is a growing awareness about the benefits of medical cannabis. People are becoming more aware of the potential of medical cannabis to treat a variety of conditions. This leads to an increase in the awareness and demand of the medical cannabis products.

In Europe – an estimated 97,000 clients entered specialised drug treatment for problems related to cannabis use (33-35 % of all treatment demands) in 2021 – with about 55,000 entering for the first time. Cannabis was the leading problem drug most frequently cited by new treatment clients–accounting for 45 % of all first-time treatment entrants in Europe.

Market Segmentation

By Type:

• Medical cannabis
• Recreational cannabis
• Hemp-derived products (CBD, fiber, seeds, etc.)
• Cannabis-infused products (edibles, beverages, topicals, etc.)

By End user:

• Patients seeking medical treatment.
• Adult consumers for recreational use
• Industrial users (hemp-based products for various industries)
• Wellness and lifestyle consumers (CBD products)

By Vertical:

• Cultivation and growing operations
• Processing and extraction facilities
• Retail and dispensaries
• Ancillary services (consulting, software, packaging, etc.)
• Research and development

By Country:

• Germany
• United Kingdom
• France
• Italy
• Russia
• Netherlands
• Switzerland

Our Methodology

We have offered a well-founded review of Europe’s regional cannabis market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.