Medical Cannabis Imports Double In Germany In The Last Year
Germany is home to the largest economy in Europe and a population that is more than twice the size of the population of California. With that in mind, it is not a coincidence that Germany’s medical cannabis market is one of the largest on earth.
Ever since Germany’s medical cannabis program opened up to the masses in recent years, cannabis entrepreneurs and investors have tried to crack into the German medical cannabis market in a meaningful way, and in the process, reap the financial rewards.
Domestically cultivated cannabis is still evolving in Germany, with the market still being supplied by medical cannabis imports from other countries. According to recent statistics released by Germany’s government, the import market grew significantly in the last year in Germany. Per Born2Invest:
The German government provided figures on the increasing demand for medical cannabis products. In 2019, 6.5 tons of cannabis flowers were imported into Germany to meet the needs of patients who treat their diseases with medical cannabis. That amount is double compared to the previous year. Significant increases have also been recorded for Sativex, Dronabinol and other cannabis products used for therapy.
Almost the entire demand for cannabis is covered by imports since cultivation is strictly regulated in Germany. According to Kirsten Kappert-Gonther, drug policy spokesperson of the parliamentary group of Bündnis 90/Die Grünen, the hard cap on the cultivation of cannabis in Germany was a mistake.
It will be very interesting to see if the import figures level off with domestic cultivation ramping up in Germany, or if it will continue to increase in size. Germany’s medical cannabis industry is still young by many standards, and it’s likely a safe bet that many patients will choose whichever option is the most affordable.
In theory, domestically cultivated cannabis has an edge from a pricing standpoint. Local cannabis is fresher and doesn’t require the shipping costs and other financial burdens that come with sending medical cannabis across international borders (and in some cases, oceans).
However, domestic cannabis isn’t an automatic winner from a profit potential standpoint. Cannabis may be able to be cultivated abroad for cheaper. Perhaps so much cheaper that the combined wholesale price and cost to export the wholesale medical cannabis is less than cultivating cannabis in Germany. After all, there’s a reason why a lot of agricultural products come from South America. Why would cannabis be different from fruits and vegetables in that regard?