Europe Medical Cannabis Market

Europe Medical Cannabis Market Size (2024 to 2032)

The Europe medical cannabis market is expected to reach USD 29.39 billion by 2032 from USD 6.06 billion in 2024, growing at a compound annual growth rate (CAGR) of 21.97% during the forecast period.

MARKET SCENARIO

The rising demand for medical cannabis across Europe is majorly driving the regional market growth.

The demand for medical cannabis products has experienced substantial growth over the last few years in Europe and is expected to see promising growth during the forecast period owing to the growing awareness among the European population regarding the potential medical benefits of medical cannabis products. The rising popularity and rapid adoption of cannabis-based treatments in Europe are contributing to the European market growth. So, the growing awareness of the therapeutic benefits of medical cannabis spreads by an increasing number of patients seeking cannabis-based treatments, and this surge in demand is transforming the dynamics of the medical cannabis market in Europe. For instance, in a survey conducted by the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA), the awareness of medical cannabis among European adults saw an increase from 23% in 2018 to 37% in 2021. Considering that, the market participants have been investing hefty amounts in R&D, cultivation, and production to address the growing demand for medical cannabis products in Europe. For instance, as per the data published by the Brightfield Group, companies that operate in medical cannabis have invested an amount of more than €300 million in R&D initiatives in 2021. Such factors are predicted to offer strength to the European region to improve its occupancy in the global medical cannabis market.

The rising legislation of medical cannabis in Europe is another notable factor fuelling the growth rate of the European market.

Medical cannabis is legal in more than 20 European countries, including Germany, Italy, the Netherlands, Portugal, and many other European countries that have acknowledged the therapeutic potential of medical cannabis and acting towards the legalization of medical cannabis. The growing legalization of medical cannabis will offer more growth possibilities to the market participants in Europe. As these regulatory frameworks mature, they provide a solid foundation for the cultivation, production, and distribution of medical cannabis products. This ensures patients have access to safer and regulated treatments while igniting innovation and attracting investments in the industry. Therefore, this transformation is poised to enhance patient care, stimulate economic growth, and contribute to a deeper understanding of cannabis-based therapies. As a result, The European medical cannabis market is poised for significant growth and offer improved healthcare outcomes and quality of life.

Regulatory compliance is a significant restraint in the European medical cannabis market.

As these stringent requirements serve to ensure the safety and quality of medical cannabis products, they also present a notable cost challenge for companies operating within the industry. The cultivation, processing, and distribution of medical cannabis demand substantial investments in security measures, quality control, and compliance efforts to meet the ever-evolving regulations. The need for security infrastructure to prevent diversion to the illegal market, coupled with rigorous quality control protocols, drives up operational expenses. Additionally, navigating the complex web of European and national regulations necessitates legal and administrative expertise, further adding to compliance costs.

SEGMENTAL ANALYSIS

Europe Medical Cannabis Market Analysis By Species

• Indica
• Sativa
• Hybrid

The indica segment dominated the medical cannabis market in Europe in 2023. The Indica segment is also expected to grow healthy during the forecast period. Indica has more medical and therapeutic effects like pain management and sedation. It is a common type of Cannabis that is widely available in Europe which helps it to lead the market.

The hybrid segment is predicted to have rapid growth in the coming years due to the presence of both THC and CBD in concentrates.

Europe Medical Cannabis Market Analysis By Type

• Flowers Buds
• Concentrates

The flower buds segment accounted for the leading share of the European medical cannabis market in 2023 and is expected to continue its domination in the coming years. Flowers contain high concentrations of both THC and CBD.

The concentrates segment is growing at a prominent CAGR during the forecast period. Concentrates are used in different commercial products of Cannabis. Concentrates are the extracts of the Cannabis plant.

Europe Medical Cannabis Market Analysis By Derivatives

• Cannabidiol (CBD)
• Tetrahydrocannabinol (THC)
• Balanced

The cannabidiol (CBD) segment held the leading share of the European market in 2023 and is predicted to grow at the highest CAGR during the forecast period. CBD has therapeutic effects with non-psychoactive effects and is primarily used for medicinal purposes.

The THC segment is predicted to grow at a healthy CAGR during the forecast period. THC is the primary component of cannabis that gives the feelings of Euphoria and is the Psychoactive substance that relaxes the consumer.

Europe Medical Cannabis Market Analysis By Application

• Cancer
• Arthritis
• Epilepsy
• Migraine

The cancer segment captured the major share of the European medical cannabis market in 2023 and is expected to grow at a prominent CAGR during the forecast period. The growing patient population suffering from cancer and the increasing number of R&D activities by the market participants are propelling the cancer segment in the European medical cannabis market. Cancer is also the second most prevalent disease in the European region.

The arthritis segment is anticipated to record a healthy CAGR in the European market during the forecast period. The market for Arthritis is slowly rising with a significant number of shares due to the pain management properties of Cannabis.

Europe Medical Cannabis Market Analysis By Route of Administration

• Oral
• Vapor
• Topicals

The oral segment is predicted to account for the leading share of the European market during the forecast period. For medical purposes, Oral supplements are used, this is a fast and efficient method of administration with high efficacy.

GEOGRAPHICAL ANALYSIS

• UK
• France
• Spain
• Germany
• Italy
• Russia
• Sweden
• Denmark
• Switzerland
• Netherlands
• Turkey
• Czech Republic
• Rest of Europe

Germany holds the largest share of the European medical cannabis market during the forecast period.

Germany has a well-established framework for medical cannabis, which is a big plus to the German medical cannabis market. The growing number of patients seeking cannabis-based treatments and increasingly importing medical cannabis from abroad to address the increasing demand for medical cannabis products from patients are further boosting the growth rate of the German market. For instance, Germany had almost 50% occupancy in the total medical cannabis imports in Europe in 2020.

The UK medical cannabis market is another key segment in the European market.

The UK market is anticipated to account for a substantial share of the European market during the forecast period. The National Health Service (NHS) allows certain cannabis-based products for specific conditions. The growing awareness and acceptance of medical cannabis products from patients in the UK is one of the significant factors propelling the UK market growth.

The Netherlands is looking good to play a major role in the European market in the coming future.

The Netherlands is a lucrative regional segment for medical cannabis in Europe and is gaining recognition for its progressive cannabis policies. The Netherlands manufactured over 2,000 kilograms of medical cannabis domestically in 2020, which indicates the growing emphasis on the cultivation of medical cannabis in this country.

France is anticipated to be a promising segment in the Europe medical cannabis market.

France has been gradually opening to medical cannabis and initiated programs to assess the impact of medical cannabis and is conducting clinical trials. The growing support for research and access to medical cannabis treatments is propelling the French medical cannabis market. While regulatory progress is slow, France holds substantial potential due to its large population and the need for alternative treatments.

Italy is a key regional segment in the European medical cannabis market.

Italy legalized medical cannabis in 2013, and it has a well-established program. It allows patients access to medical cannabis through its healthcare system, and there is a growing patient base. In Italy, an estimated 100,000 patients benefited from medical cannabis treatments, and Italy imported more than 2,400 kilograms of medical cannabis in 2020.

Spain is estimated to do well in the European market during the forecast period.

Spain has a history of cannabis use. The medical cannabis market in Spain is thriving. Also, Cannabis clubs and associations have been operating for years, but formal medical cannabis regulations are limited. There's potential for growth, but regulatory clarity and investment are needed to foster a robust medical cannabis market.

RECENT HAPPENINGS IN THE MARKET

• In February 2023, the Parent Company and Gold Flora, a vertically integrated California cannabis business, announced plans to merge. The combined company will operate as Gold Flora Corporation and is anticipated to remain a reporting issuer in Canada on the Neo Exchange Inc. and the OTC Markets Group Inc. Under the all-stock merger agreement, The Parent Company shareholders will own approximately 49% and Gold Flora holders will own approximately 51% of the outstanding common equity of the combined company. The combined company would have pro forma revenue of $116.4 million for the nine months that ended Sept. 30, 2022, with a gross margin of 33%.

KEY MARKET PLAYERS

A few of the notable players operating in the European medical cannabis market profiled in the report are BOL Pharma, Tilray, Medreleaf Corporation, Aurora Cannabis, Inc., Canopy Growth Corporation, Insys Therapeutics, Inc., Aphria, Inc., MGC Pharmaceuticals Limited, GW Pharmaceuticals, plc.