The Europe cannabis market is expected to reach US$ 36,997.1 million by 2027 from US$ 3,498.1 million in 2019; it is anticipated to grow at a CAGR of 29.6% from 2020 to 2027.
The growth of the market in this region is attributed to the upgrading of regulations for medical cannabis and growth of the cannabis industry. However, challenges related to cannabis hinder the market growth.
The European countries are experiencing transformation in the regulations for marketing cannabis and related products. The changes in the regulations have allowed the cultivation, processing, and trade of the cannabis-derived products across this region. In addition, the online distribution of CBD has received more attention, and companies are emerging at a faster rate. In May 2019, European Cannabis Holding (ECH) and Miller & Miller Chemicals Ltd. formed Astral Health, a new end-to-end platform, in the UK to import approved medical cannabis products. In the following weeks of May, countries such as Germany, Italy, Spain, and France were expected to announce the distribution of cannabis medical products.
There has been a significant rise in startups in the European cannabis market in the past few years. For instance, Blossom Genetics, Cannamedical Pharma, Demecan, Grass & Co, Cannaray, Rainbow, NOBL Group, Alphagreen, Sanity Group, and Daye were founded after 2015. Moreover, well-established companies are launching new products in the market. For instance, in December 2019, EMMAC Life Sciences Group launched its first unlicensed medical cannabis products in the UK and European market. According to a report by the UN’s International Narcotics Control Board, before legalization, the UK has emerged as the largest producer and exporter of legalized cannabis for medical and research applications. Therefore, it is expected that the legalization of cannabis in the European region would further enhance the UK’s cannabis industry.
In April, 2020, a study posted on Pan European Networks Ltd, a health European website, stated that the researchers would conduct an anonymous survey among medical cannabis patients regarding their mental health and physical health, as well as examining changes in patient’s frequency of use of cannabis, dosage, and route of administration based on COVID-19-realted closures and updates. Thus, it is expected that the COVID-19 pandemic is likely to offer extensive growth opportunities for market growth.
Based on product type, the Europe cannabis market is segmented into flowers, concentrates, and others. In 2019, the flowers held the largest market share; however, the concentrates segment is expected to witness the highest CAGR during the forecast period. Based on application, the European cannabis market is segmented into medical and recreational. In 2019, the medical segment held a larger share of the market; however, the recreational segment is anticipated to register a higher CAGR in the market during 2020–2027. Based on compound, the Europe cannabis market is segmented into tetrahydrocannabinol (THC)-dominant, cannabidiol (CBD)-dominant, and balanced THC and CBD. In 2019, the THC dominant segment held the largest share of the market. However, the market for the CBD dominant segment is estimated to grow at the highest CAGR during the forecast period.
The European Food Safety Authority, European Monitoring Centre for Drugs and Drug Addiction, and International Cannabis and Cannabinoids Institute are among the major primary and secondary sources associated with this study on the Europe cannabis market report.