The European cannabis industry is set to boom in 2025.

2024 has been a dramatic year for the global Cannabis industry, witnessing both historic advances and worrying regressions in attitudes and policies.

It is also a year dominated by elections, with around half of the world's population eligible to vote in national elections in 70 countries.

Even for many of the most progressive countries in the cannabis industry, this has signaled a significant shift in political stance and has led to a preference for draconian measures and even policy regression in many countries.

Despite a significant drop in the share of the vote for the ruling party - more than 80% in the year - there are still reasons to be optimistic about the outlook for the cannabis industry in the year ahead.

What is the outlook for the European cannabis industry in 2025? Come and listen to the experts' interpretation.

Positioning Cannabis Drugs in the Global Healthcare System

Stephen Murphy, CEO of Prohibition Partners, Europe's leading cannabis industry data organization, believes that the cannabis industry will accelerate over the next 12 months.

He says: “The cannabis industry in 2025 will accelerate its shift towards automation in all segments of decision-making, operations, marketing and finance. As more and more businesses become cash flow positive, we will see the emergence of new suitors and a willingness to take the necessary risks that could drive significant policy changes.”

“Next year will also be a pivotal time when the focus will no longer be limited to cannabis itself, but rather its deeper integration with healthcare. The main growth opportunity lies in positioning cannabis medicines as a core component of the global healthcare system - a step that I believe will redefine the trajectory of the industry.”

The cannabis industry will continue to grow, but not without challenges, says Prohibition Partners senior analyst. Overly bureaucratic practices in some countries will continue to hinder market growth. Striking a balance between accessibility, quality control and regulation is critical to creating a sustainable, socially beneficial cannabis framework. As countries learn from each other's successes and failures, patterns of growth in the medical and adult-use cannabis markets are emerging.

“However, there is a huge potential yet to be unlocked in the global industry, and given the continued progress over the past few years, it seems certain that this potential will eventually be realized one way or another.”

Germany's Landmark Reform Will Continue to Spark Momentum in Europe

This year, Germany semi-legalized cannabis for adult use. Citizens can use cannabis in designated areas without fear of prosecution, possess cannabis for personal use, and grow cannabis at home for their own use.2024 is a “historic year” for German cannabis policy, and its broad decriminalization represents a “real paradigm shift” for the country. A real paradigm shift”.

Months after the passage of the German Cannabis Act (CanG) in April, cannabis social clubs and private cultivation were also legalized, and just this month, legislation allowing for a Swiss-style adult-use cannabis pilot program was passed.

In light of these landmark policy advances, Cannavigia said, “While commercial sales remain restricted, these changes underscore the momentum towards broader legalization in Europe.” Cannavigia has been actively involved in recreational cannabis pilot programs in Switzerland and Germany to help stakeholders ensure compliance.

Looking ahead, the company believes that “the expansion of the German recreational cannabis pilot program will provide valuable insights into consumer behavior and regulatory frameworks, paving the way for broader legalization efforts.”

Philipp Hagenbach, Cannavigia's co-founder and COO, added: “Our pilot projects across Europe have provided us with valuable insights into consumer behavior and regulatory needs. These projects are a key building block towards wider legalization and market acceptance. In addition, we need to do more to combat the illicit market until we find the ultimate commercial pathway for recreational cannabis distribution.”

German medical marijuana market could see consolidation as growth continues

Perhaps even more influential than the deregulation of recreational marijuana in Germany was the removal of cannabis from the narcotics list. This has fueled phenomenal growth in Germany's medical marijuana industry, with far-reaching implications for cannabis businesses throughout Europe and across the Atlantic.

For Grünhorn, Germany's largest online medical marijuana dispensary, 2025 is the “year of transition,” forcing it to “quickly adapt to the new regulations.”

Grünhorn CEO Stefan Fritsch explains, “While most of the planned cannabis cultivation associations are dead in the water, and the second pillar of legalization, the planned commercial retailing of cannabis, is still delayed, cannabis dispensaries like Grünhorn Dispensaries redeeming medical marijuana prescriptions via doctor or remote visits is the only fully effective solution so far.”

The company also highlighted further changes to Germany's medical marijuana system, which has simplified the process of reimbursing patients for prescription drugs through health insurance and significantly increased the number of doctors with access to cannabis prescriptions.

“These changes have improved patient care overall, providing faster access to treatments for conditions such as chronic pain, endometriosis and insomnia. The decriminalization and de-stigmatization of cannabis therapies also means that patients no longer feel like they're engaging in illegal activity, promoting a safer, more inclusive healthcare environment.” Fritsch added.

At the same time, he also warned that a new government cannot return to failed cannabis prohibition policies when it takes office, as it will likely be led by the same political party that proposes to roll back cannabis reforms.

Marijuana attorney Neiman agrees, arguing that the medical market could “explode after the repeal of the narcotics laws, but then it must consolidate.” In the tension between marketing and legal requirements, it is important that the industry operates in a legally compliant manner when it comes to quality, medical requirements and advertising.”

Demand for medical marijuana growing in Europe

Demand for medical marijuana is growing dramatically across Europe, especially after regulatory policy changes in Germany.

Ukrainian Health Minister Viktor Liashko visited Germany this year to prepare for the legalization of medical marijuana in the country. The first cannabis drugs are expected to hit the market early next year.

This month, the first medical marijuana product was officially registered in Ukraine, according to Hannah Hlushchenko, founder of the Ukrainian Cannabis Consulting Group, which is produced by Curaleaf, the company her group oversees. It is hoped that Ukrainian patients will soon have access to medical marijuana. We'll see what happens next year when the market may actually open up.

While France and Spain seem to have stalled in adopting broader regulatory frameworks, Denmark has managed to get its medical marijuana pilot program into permanent legislation.

Additionally, an additional 5,000 GPs will be allowed to prescribe medical marijuana in the Czech Republic from April 2025, a move that is expected to significantly improve access to healthcare and drive an increase in the number of patients.

Cannaviga said that international companies are also taking an interest in the Thai market as well and are expanding production to meet demand. With Thai companies increasingly looking to export their products to Europe, Sebastian Sonntagbauer, Head of Customer Success at Cannavigia, emphasized the importance of ensuring that Thai products are able to meet stringent European standards.

UK to focus on quality assurance and building patient trust

2024 The UK cannabis market continues to grow, and it has been suggested that the UK cannabis market may have reached a “critical crossroads” when it comes to product quality and compliance.

Matt Clifton, head of communications at Dalgety, warned that contamination issues such as mold, driven in part by the demand for non-irradiated products, could “erode patient trust in the market”. This shift to quality assurance is not just about patient care, it is about rebuilding credibility and trust in the industry.

"Although the application of price pressure may attract consumers in the short term, this approach is ultimately unsustainable and poses a threat to the industry's credibility. Companies that prioritize higher standards, such as those certified under Good Manufacturing Practice (GMP) regulations, are poised to gain a greater market share. This is due to the fact that discerning patients will prioritize safety and consistency over affordability."

In light of the UK Medicines and Healthcare Products Regulatory Agency's recent prohibition on the utilization of strain names on medical Cannabis Flower products, Clifton anticipates that the regulatory agency will adopt a more stringent stance on the industry in the forthcoming year. This will entail the requirement for importers to undertake a more rigorous testing regime for products entering the UK.

In parallel, Adam Windish of Cannabis Medical UK underscored the pivotal role of the UK Medicines and Healthcare Products Regulatory Agency's recent approval of e-prescribing in reducing patient wait times, streamlining processes, and promoting the consideration of medical cannabis as a treatment option. He further emphasized the indispensability of collaboration among medical professionals, patients, and healthcare providers.

Recent developments in the realm of product innovation encompass the emergence of cannabis extracts, edible products, and personalized medicine.

As the medical cannabis market continues to mature, it is anticipated that the range of products available will undergo expansion, including an increase in demand for edible products and extracts, and a corresponding decrease in demand for dried flower.

The introduction of oral tablets and e-cigarettes in the UK is noteworthy, but cannabis flower remains the most commonly prescribed type of product by far. Windish, a UK-based cannabis medicinal company, has expressed a desire to see more prescribers opting for cannabis oils and extracts, particularly for patients with no prior experience with cannabis, with the aim of ensuring a more balanced and effective array of treatment options.

In other European countries, Demecan, a German medical marijuana company, exhibited its edible cannabis products at ExpoPharm earlier this year. Meanwhile, in Luxembourg, regulators are planning to restrict access to dried flowers with high concentrations of THC, with a view to phasing out flower products and replacing them with cannabis oil.

In the forthcoming year, there will be an increased focus on the personalization of cannabis-based medicines. Medical marijuana companies are preparing to introduce customized blends of extract concentrates and other consumption form options, such as specific cannabis concentrates.

Subsequent research endeavors will encompass the exploration of the impact of medical marijuana on specific diagnoses, the evaluation of long-term therapeutic effects, the assessment of healthcare cost savings, and the comparison of delivery methods such as extracts and capsules. Researchers have also underscored the merits of glass containers over plastic ones for cannabis substance storage.

Innovation in manufacturing processes

In 2025, the industry will need more advanced manufacturing processes as the range of products increases.

Rebecca Allen-Tapp, product manager at the growing equipment supplier Paralab Green, has seen an increase in the number of companies adopting automated and in-house solutions that "offer greater flexibility and enable producers to streamline their processes."

She says that investing in flexible equipment, like near-infrared spectrometers for nutritional monitoring and qPCR systems for early pathogen detection, helps companies adapt to the growing and diverse market.

Right now, as "small batch, artisanal cannabis" is becoming a new and important part of the cannabis market, there is a growing need for a customized line of "precise and consistent small batch production equipment."

This text was translated using DeepL.com/Translator, which is a free version of the translation service.