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Cannabis market boosted by Germany’ s legalization framework for adult-use

Legalize cannabis

Αn agreement was announced in Germany to legalize cannabis for adult-use and to create a regulated adult-use cannabis industry framework. This decision is going to change the market by enhancing the purchase and sale of medical cannabis not only in Germany but worldwide. The draft law, which will be voted, will create the first cannabis market for adults in Europe and a very important development of medical cannabis market, as well as the ripple effect that it will probably bring. The legalization measure is expected to be introduced during the upcoming legislative session. 

More specifically, the momentum to legalize the use of cannabis by adults in Germany will push other countries to take similar decisions. As announced, the purpose is to distribute cannabis products to adults for controlled consumption in licensed stores. Through this process, quality will be controlled, the transport of contaminated substances will be prevented and the protection of minors will be guaranteed. In fact, it was pointed out that the law will be evaluated after four years in terms of social impact.

However, while cannabis use for adults will undoubtedly boost the domestic supply chain, cannabis products will be expensive. It is estimated that the creation of a complete, licensed installation will cost from 250,000 euros to over 1 million euros. Therefore, the development of the cultivation and purchase of medical cannabis in many European countries will enable the possibility of securing supplies from countries with the development of investments in medical cannabis units, such as Greece. Moreover, the increase in demand for medical cannabis products in Germany, but also worldwide has soared.

As of right now, only two countries have legalized cannabis for adult use – Uruguay and Canada. A number of countries are moving towards legalization, including Luxembourg which recently announced plans to legalize in 2022. Switzerland allows low-THC cannabis products to be bought and sold, and court decisions in South Africa, Italy, and Mexico have created quasi-legalization. In fact, Germany is just the third country in the world and the first European country to legalize adult cannabis.

The result of the imminent legitimacy of Germany will prove to be particularly important at European level, as Germany has long held a significant ammount of impact and political influence in Europe. It is also a major international hub for technological and industrial innovation.

VK PREMIUM offers an enhanced palette of advisory services to facilitate medical cannabis investments in Greece.

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