Germany's Cannabis Imports Increase 4x In 2024 Amid Regulatory Changes: Which Countries Are Top Providers?
Germany’s medical cannabis imports hit a record 31.6 metric tons in the fourth quarter of 2024, marking a nearly fourfold increase from Q1 2024 and a 53% rise from Q3 2024, according to a new report from Zuanic & Associates. The surge is primarily attributed to changes in Germany’s Narcotics Law, implemented on April 1, 2024, which facilitated greater access to medical cannabis.
“Changes in the Narcotics Law…explain the jump in demand,” the report states, emphasizing how the revised regulations spurred higher import volumes.
Canada And Portugal Lead, But Competition Heats Up
Germany’s booming demand was met primarily by Canada and Portugal, which accounted for most of the absolute import growth between Q3 and Q4 2024. Canada remained the dominant supplier, responsible for 43% of imports in Q4, while Portugal secured 29% of the market.
Also read: Switzerland Moves To Legalize Recreational Cannabis Under Strict Government Control
Despite Canada’s lead, its market share declined significantly over the year. “The drop in Canadian share in 2H is notable,” Zuanic & Associates reported, pointing to a fall from 57% in Q1 2024 to just 43% in Q4. Portugal, on the other hand, nearly doubled its stake from 13% in 2023 to 29% by the end of 2024, fueled by both domestic cultivation and EU-GMP-certified imports from Canada.
Denmark followed as the third-largest supplier, with 10% of Germany’s imports in Q4, while North Macedonia and Uruguay each accounted for 3%. Australia, South Africa and Spain held smaller shares.
Impact On Global Cannabis Markets
Germany’s surging demand is driving up cannabis prices internationally, particularly in Canada's B2B sector and in other export markets such as Australia. This trend benefits licensed producers with strong international operations or those looking to expand their footprint in Europe.
“German demand growth has also had a ripple effect pushing up Canadian B2B domestic prices, as well as prices to other export markets such as Australia,” the report notes.
Is Germany's Market Reaching Full Potential?
While Germany’s import numbers have skyrocketed, its medical cannabis penetration remains low compared to Canada and key U.S. states. According to the report, medical marijuana penetration in Germany is less than a third of Canada's (under 1% of the population) and well below Florida and Pennsylvania's 3% range.
Germany’s market is also fundamentally different from those in North America due to its pharmaceutical-focused framework. Patients must receive prescriptions detailing exact strains, dosages, and brands, with limited flexibility for pharmacies.
Growth potential remains high and experts predict an increase in telehealth prescriptions and online pharmacy accessibility, which could further expand the patient base.
Regulatory Stability Encourages Investment
Despite Germany’s shifting political landscape, no major regulatory changes are expected under the new government, according to Zuanic & Associates. “No, we do not expect major changes in Germany's MMJ regulations under the new government (something to monitor),” the report states.
With pharmacy purchases estimated at 16-19 tons in Q4 2024, and annualized retail sales projected around €600 million ($640 million), the German medical cannabis market continues to establish itself as a key global player. Companies with established operations in Germany, including Tilray (NASDAQ:TLRY), Aurora (NASDAQ:ACB), Canopy Growth (NASDAQ:CGC) and Curaleaf (OTC:CURLF), stand to benefit as the sector matures.
As demand keeps climbing and import sources diversify, Germany's position as Europe's cannabis powerhouse appears increasingly secure.