A Year Into Legalization, What Is The Current State Of The Cannabis Industry in Germany?

Starting from April 1, 2024, Germany has invested hundreds of millions of Euros in the medical cannabis sector, averting hundreds of thousands of criminal prosecutions and allowing millions of German citizens to enjoy the right to use cannabis legally and for free for the first time.

However, the reform remains contentious, with the issue being highly politicized. As discussions continue between the Christian Democratic Union/Christian Social Union, which opposes cannabis, and the Social Democratic Party, which supports it, over the formation of a coalition government, the future of the cannabis industry in Germany remains uncertain.

Regardless of whether the new coalition will attempt to repeal the Cannabis Reform Act (CanG), the legislation has already had a lasting impact on Germany's economy and society, and after one year, this genie will be quite difficult to put back in the bottle.

The Impact of the Cannabis Legislation on Germany

The "Cannabis Control Act" (CanG) officially came into effect on April 1st, 2024, allowing adults to legally possess, consume, and grow up to three cannabis plants at home. Subsequently, on July 1st, 2024, Germany implemented further regulations, permitting the establishment of non-profit cultivation associations, enabling members to grow and distribute cannabis for adult use.

Although the legalization of cannabis for adult use on a national level in Germany is not the first such policy change to be implemented in Europe, it is undoubtedly one of the most significant legalization measures in Europe.

One of the most impactful aspects of the legislation, particularly from an economic perspective, is the removal of cannabis from the list of controlled narcotics, a change that has led to the flourishing of the German medical cannabis industry.

According to the German Cannabis Industry Association (BvCW), this law has promoted prosperity in the following three aspects.

Medical Cannabis

The facts show that the German medical cannabis program is the biggest winner of the new CanG Act. It is estimated that by 2024, investments in the German cannabis industry will reach €300 million, with about €240 million being used to boost the thriving medical market. Moreover, the association also indicates that the revenue of the German cannabis industry is expected to reach around €1 billion by 2025.

Although this clearly helps in the operation of cannabis businesses, the National Cannabis Industry Association (NCIA) believes that this also benefits patient care for medical cannabis users in the country.

"The substantial investment in the medical cannabis industry highlights the growing importance of the industry for sustainable healthcare in Germany. This robust development has made a significant contribution to ensuring patients have access to high-quality, assured cannabinoid-based medication," said Antonia Menzel, chairperson of the Cannabinoid Association (BPC).

The latest official medical cannabis import data reflects this rapidly surging market, which not only benefits domestic cannabis clinics but also international suppliers.

According to the latest data from the German Federal Institute for Drugs and Medical Devices (BfArM), by 2024, the total quarterly import of dried cannabis flowers into Germany for medical and scientific purposes will exceed 70 tonnes, whereas just a year ago it was only 32 tonnes.

In the last quarter of 2024, Germany imported 31,691 kilograms of dry cannabis flowers, a 53% increase from the previous quarter's 20,654 kilograms.

Compared to the fourth quarter of 2023, prior to the implementation of the Cannabis Act of April 2024, the volume of cannabis imports increased by an astonishing 272%.

The proprietary independent data from the cannabis company further confirmed this point. Earlier this year, the Bloomwell Group, one of Germany's largest medical cannabis operators, reported that since the legal change on April 1st, the number of prescriptions received by cannabis pharmacies increased by 1000% from March to December of last year.

Family Planting and Planting Association

According to the latest data from the upcoming "European Cannabis Report: 10th Edition" by industry intelligence agency Prohibition Partners, by March 2025, more than 500 applications have been submitted by cannabis associations across Germany, yet only approximately 190 have been granted permits. The cultivation associations enroll adults as members, who can then legally purchase cannabis through their membership with the association.

The federal states issuing the most permits are North Rhine-Westphalia, Lower Saxony, and Rhineland-Palatinate, with these three states together accounting for about 60% of the total number of permits issued in Germany.

Successfully reduced crime.

A key argument presented by the Traffic Light Alliance in promoting the CanG bill is that it will reduce crime, curb the black market, and allow judicial and law enforcement agencies to focus their time on more serious offenses.

One of the primary successes of the new cannabis law is the reduction of its impact on the country's criminal justice system. Legalization has allowed German law enforcement agencies to focus on combating actual crimes and has freed up the country's law enforcement resources to deal with more serious offenses.

According to a report by the weekly magazine Der Spiegel, in the months since partial legalization, around 100,000 criminal prosecutions have been avoided. The publication notes: "In Bavaria, the region most critical of cannabis, the number of crimes related to marijuana fell by 56% last year, to 15,270 cases. In North Rhine-Westphalia, marijuana-related criminal offenses in 2024 decreased by more than half (53%) compared to the previous year."

According to further police and crime statistics obtained by the "Der Spiegel" weekly, drug offenses in Germany decreased by about one-third in 2024, with the overall national crime rate declining by 1.7%. There is no evidence to suggest that the law has led to a 'surge in drug-related crimes' or other disasters, as rumors within the circles of the Christian Democratic Union/Christian Social Union would have it.

According to an analysis previously conducted by the Institute for Competition Economics at the Heinrich Heine University Düsseldorf, legalizing adult use could save up to 1.3 billion euros per year in costs for Germany's police and judicial departments.

However, the Ministry of Interior refuted this assessment, claiming "there is no evidence to suggest that partial legalization has in any way curbed the illegal market or diminished demand."

This seems to be based on the fact that due to the current legalization of drug consumption, drug-related crimes have decreased by 33%, most of which are "consumer crimes." Last year, about 1000 acts violating the new law were recorded, involving trafficking, smuggling, and possession of illegal quantities of drugs.

The German law enforcement authorities also seem to agree that the law requires an urgent review, with Alexander Pots, vice-chairman of the German Federal Police Union, calling for the future federal government to quickly amend the legislation.

Potts stated: "As long as the laws are not improved, the black market cannot be curtailed, and the protection of minors or road safety cannot be guaranteed. Organized crime is exploiting the clear shortcomings of the law to achieve their own ends. The partial legalization of cannabis has not significantly reduced the workload of the police. At the same time, there is a need for substantial investment in acquiring the most advanced control equipment and detection instruments."

How does the public view this?

According to a recent survey released by the global seed company Royal Queen Seeds, 51% of German parents believe that home-grown cannabis is safer than cannabis purchased on the streets, while the global figure for this sentiment rises to 57%.

Among the German adults surveyed, less than half (40%) support this reform. Senior citizens aged 65 and over, as well as retirees, remain the most skeptical, while individuals under the age of 40 are more likely to support the reform. Nearly 50% of the public believes that the new regulations will enhance public awareness of marijuana.

Meanwhile, 41% of German cannabis consumers plan to grow their own by 2025, 77% of home growers believe that personal cultivation has value, and 75% think that consuming cannabis they've cultivated themselves is safer.

A separate representative survey conducted by YouGov involving over 2,000 participants revealed that 45% of Germans are open to discussing medical cannabis with their doctor. While only 7% have already spoken to their healthcare providers about this topic, an additional 38% stated that they would do so if there was a medical need.

In most cases, it is the patients, not the doctors, who initiate the conversation. Among adults aged 45 to 54, only 2% indicated that their doctor suggested the use of medical marijuana. In the population aged 55 and older, this figure drops to just 1.2%.

In contrast, a slightly larger percentage of the younger groups reported physician-initiated discussions: 5.8% of individuals aged 25-34 and 5.3% of those aged 35-44 indicated that their doctors had brought up the idea.

Despite increasing acceptance, the stigmatization of cannabis remains a barrier. Nearly 6% of respondents indicate that even though they personally have an open attitude toward cannabis, they would avoid discussing it with their doctor for fear of being judged.

However, the younger generation appears to be more proactive, with 49% of young people under 34 stating that they would immediately consult their family doctor for information about cannabis as a medical option if necessary.

On the whole, after a period of one year, the legalization of cannabis in Germany has proven to be successful in many respects. To be fair, although the comprehensive implementation of the cannabis act has encountered obstacles in certain areas, including the lack of regional pilot trials for the retail of cannabis for adult use. However, it has been reported that the German Federal Office for Agriculture and Food has started to accept applications for pilot trials, and therefore the long-awaited adult cannabis pilot projects are about to commence.

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