In a global cannabis market brimming with potential, where should businesses focus their attention? Experts from the Benzinga Cannabis Capital Conference examined the profitability and growth prospects across Europe, Australia, Southeast Asia, and Canada, with Germany standing out as the market leader.

Europe: A Booming Market Led By Germany

The panel, moderated by Jamie Pearson, President of New Holland Group BHNGF, featured William Muecke, co-Founder of Artemis Growth Partners, Michael DeGiglio, CEO of Village Farms International Inc VFF, Beena Goldenberg, CEO of Organigram Holdings Inc OGI, and Finn Age Hänsel, Founder of Sanity Group. 

The panelists agreed that Germany is the leading force in the global cannabis market. “Germany is the poster child for what we think the rest of Europe could look like,” Muecke said. Since April 1, Germany enacted CanG, decriminalizing cannabis sales, which led to a surge in demand. He added that the patient base grew from 250,000 to 600,000 in under a year, with more growth on the horizon.

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A $4 Billion Market In The Making

“The European cannabis market is currently valued at around $1 billion, and we expect it to grow to $4 billion within three years,” Muecke said. By contrast, while the U.S. market stands at $45 billion today, it is expected to grow to $60 billion over the same period. With Germany’s population of 85 million, the country is a significant driver of this expansion.

Hänsel added that Germany has enormous potential, noting, “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.”

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Supply Challenges And Opportunities

One of Germany‘s biggest hurdles will be meeting the increasing demand for cannabis. Hänsel shared that Sanity Group’s sales rose from 150 kilograms in January to a projected 700 kilograms by October, illustrating the rapid scaling needed. 

Goldenberg added that sourcing high-quality products domestically in Germany remains challenging, and the country may need to import from markets like Canada.

Canada: High Taxes, Low Profits

Canada, once considered a leader in cannabis legalization, is struggling with profitability. “It’s tough to make money in Canada,” said DeGiglio. Village Farms paid $100 million in excise taxes this year, representing nearly 50% of their revenue. This tax burden has pushed Canadian companies to explore international markets for higher profitability.

Goldenberg echoed this sentiment, explaining, “We don’t pay excise taxes on our international sales,” making markets like Germany and Australia much more appealing.

Australia: A Rising Star

Australia is emerging as a promising market, particularly for non-combustible products. Goldenberg highlighted Australia’s focus on ingestibles, saying, “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.

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The Importance Of EU GMP Certification

A recurring theme throughout the panel was the necessity of EU GMP (Good Manufacturing Practice) certification. Both Village Farms and Organigram have secured EU GMP certification, which allows them to export cannabis to international markets. “There are only about 50 licensed EU GMP operators worldwide,” DeGiglio noted. “This certification opens a lot of doors, especially in Europe.”

Goldenberg added that obtaining this certification is a serious commitment, requiring significant investment in facilities and compliance. “It’s no joke,” she said. “This is what sets us apart and allows us to ship quality products globally.”

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Photo by Wendy Davis.