The next country to make some significant changes to the international cannabis industry is Germany, if and when it decides recreational and adult-use cannabis is something it could benefit from. The country’s cannabis companies have already generated immense funding.
But, before we get into why Germany’s prospective recreational market will be a boom, let’s understand how long it took for the country to even discuss such a motion. It was 2017 when Germany legalized medical cannabis, which came with many new startup companies like Cansativa, Cantourage, Demecan, and Sanity Group.
Since then, there have been talks of a legalized recreational market, but that was expected to take place once Germany’s new coalition government was set in stone. One of the government’s core goals was legalizing recreational cannabis. If the country were to make a move like this, investors hope it would set by example and hopefully spur other countries to hop on the legalization train.
Photo by Organigram Inc.
So far, Berlin-based medical cannabis company Sanity Group raised $3.5 million in a funding round from Casa Verde Capital. This firm invests in cannabis businesses and is led by none other than Snoop Dogg. In total, the company has raised the highest amount of money any cannabis startup in Europe has ever reached, at $76 million, according to Bloomberg.
Cansativa Group in Frankfurt raised a generous $15 million in a funding round led by Casa Verde Capital. As per Bloomberg, this round was far more successful than the company’s first round, and further investments are expected to increase from here on out.
Even without recreational cannabis, Germany is still Europe’s largest medical market, thanks to its thriving medical program and the many educated doctors prescribing the plant. Sources said that insurance reimbursements for medical cannabis increased by 9% from 2020 to 2021. In total, there have been $17 million worth of reimbursements.
Reports note that if Germany were to legalize recreational cannabis, annual sales for the plant could reach anywhere from $2 billion to $4 billion. Until then, the country’s new government is hashing out the details for licensing, production, manufacturing, and all other aspects that go into a regulated and equitable market.