## Germany Leads the Global Cannabis Market: Insights from the Benzinga Cannabis Capital Conference
The global cannabis market is ripe with potential, and at the recent Benzinga Cannabis Capital Conference, industry experts gathered to discuss the most promising growth opportunities. The focus was on the European market, with Germany emerging as the leading force, followed by Australia, Canada, and Southeast Asia.
### Germany: A Booming Cannabis Market
Moderated by Jamie Pearson, President of New Holland Group, a panel of industry leaders, including William Muecke (Artemis Growth Partners), Michael DeGiglio (Village Farms International), Beena Goldenberg (Organigram Holdings), and Finn Age Hänsel (Sanity Group), highlighted Germany’s rapid rise.
“Germany is the poster child for what we think the rest of Europe could look like,” stated Muecke. Since the enactment of CanG in April 2023, which decriminalized cannabis sales, Germany has seen a surge in demand. The patient base has already grown from 250,000 to 600,000 in less than a year, with further growth expected.
### A $4 Billion Market on the Horizon
“The European cannabis market is currently valued at around $1 billion, and we expect it to grow to $4 billion within three years,” said Muecke. While the U.S. market is currently valued at $45 billion, it is projected to reach $60 billion in the same timeframe. Germany’s population of 85 million makes it a significant driver of this expansion.
Hänsel pointed out the immense growth potential: “Right now, only 0.2% of the population are medical cannabis patients. Compare that to 3% in Australia or 4% in Florida, and you see how much room there is for growth.”
### Challenges and Opportunities in the German Market
Meeting the increasing demand is a significant challenge. Hänsel shared that Sanity Group’s sales have skyrocketed from 150 kilograms in January to a projected 700 kilograms by October, demonstrating the rapid scaling required. Goldenberg highlighted the difficulty in sourcing high-quality cannabis domestically in Germany, suggesting the need for imports from markets like Canada.
### Canada: High Taxes, Low Profits
Once a leader in cannabis legalization, Canada is facing profitability challenges. “It’s tough to make money in Canada,” acknowledged DeGiglio. Village Farms paid $100 million in excise taxes this year, representing nearly 50% of their revenue. This heavy tax burden has prompted Canadian companies to explore international markets for higher profitability.
Goldenberg echoed this sentiment, stating, “We don’t pay excise taxes on our international sales,” making markets like Germany and Australia much more appealing.
### Australia: A Rising Star for Non-Combustibles
Australia is emerging as a promising market, particularly for non-combustible products. Goldenberg highlighted Australia’s focus on ingestibles, stating, “It’s not just about flowers anymore. Australia is interested in gummies and vapes, and we think that trend will grow.” The export opportunities in this market could provide a much-needed revenue boost for companies diversifying beyond flower sales.
### The Importance of EU GMP Certification
The panel repeatedly emphasized the necessity of EU GMP (Good Manufacturing Practice) certification for international cannabis trade. Both Village Farms and Organigram have obtained EU GMP certification, allowing them to export cannabis to international markets.
“There are only about 50 licensed EU GMP operators worldwide,” noted DeGiglio. “This certification opens a lot of doors, especially in Europe.”
Goldenberg added that obtaining this certification is a serious commitment, requiring substantial investments in facilities and compliance. “It’s no joke,” she said. “This is what sets us apart and allows us to ship quality products globally.”
The Benzinga Cannabis Capital Conference provided valuable insights into the global cannabis market, highlighting the importance of key regulatory developments, consumer preferences, and the crucial role of EU GMP certification for international growth. As the industry continues to evolve, these trends will shape the future of cannabis businesses worldwide.