Why Cannabis Will Thrive in Europe

In most industries, companies in Europe and the United States see eye to eye and have an interdependent relationship. In the brief history of the cannabis industry, however, this has not been the case.

While the U.S. recreational market has grown steadily over the past decade, European countries have taken a much slower and more methodical approach heavily focused on medical programs, public safety, and inhibiting the illicit market. With a strict regulatory environment, a growing number of medical research projects, and the involvement of pharmaceutical companies, European countries have established strong medical programs and only now are taking baby steps toward recreational use. Switzerland, the Netherlands, and Germany all have begun pilot recreational programs, some of which even allow for home cultivation and nonprofit social clubs.

The European cannabis market, valued at approximately $2.17 billion in 2023, is projected to grow at a compound annual rate of 19.3 percent, reaching about $11.09 billion by 2032, according to Benzinga. Thus far, Germany, the United Kingdom, Italy, and the Netherlands are leading the way.

While the figures may seem small compared to the U.S. market, which is expected to generate $43 billion in revenue in 2024, Europe has some advantages over the U.S. in terms of stability and regulatory structure that may create a steadier, more predictable path forward. As the industry enters a period when pharmaceutical companies are beginning to take an interest in forming partnerships and developing targeted products, Europe could be poised to take a more prominent role in the international market.