Medical Marijuana Imports In Germany Increase 51% YoY Following Reform, Cannabis Clubs Still Face Bureaucratic Challenges

Germany's Federal Institute for Drugs and Medical Devices (BfArM) recently issued a report on the medial marijuana import figures for the second quarter of the year. According to the data, Germany imported 11,706 kg of dried cannabis flower into the country for medical or scientific purposes, writes Business of Cannabis.

Compared to the first quarter of the year, when 8,134 kg were imported, the second quarter figures represent a 44% increase. Furthermore, the fourth quarter of 2023 had the highest level of imports of any quarter since medical marijuana was legalized seven years ago This year's second-quarter imports are 38% higher than those of the fourth quarter.

Since cannabis is no longer considered a narcotic, medical marijuana has become more accessible. In fact, one of the biggest breakthroughs under the law is that medical marijuana is essentially regulated like ibuprofen. Following this cannabis reform, demand for medical cannabis significantly grew. On a year-over-year basis, the import increased 51%. The number of patients also grew 400% from March to June 2024.

The German medical marijuana market is said to hold huge potential. It is projected to reach a valuation of approximately €1.7 billion ($1.86 billion) by 2025​. BfArM hasn't disclosed data on how much was sold in pharmacies though Germany has had oversupply issues previously.

According to a recent report from the medical marijuana company Bloomwell Group GmbH on Germany’s private medical marijuana market, the price of medical marijuana flower initially rose slightly following its reclassification as a non-narcotic. However, costs quickly stabilized and then dropped in June. More importantly, patients are now paying an average of half the price for medical marijuana prescriptions, compared to what they paid at the beginning of 2023.

Bloomwell's CEO and co-founder, Niklas Kouparanis, told Business of Cannabis that Germany was prepared for demand.

"Currently, there are around 200 wholesalers in Germany, importing and selling cannabis B2B to pharmacies," Kouparanis said. "After April 1st, there was a rapid increase in demand, as reflected in the report. Initially, the industry was somewhat overwhelmed by this demand, leading to a slight increase in prices. However, as the market adjusted, prices began to stabilize and are now declining slightly, returning to previous levels."

The BfArM report also reveals that the majority of products are imported from Canada. In just the first six months of the year, 11,103 kg of cannabis flower came from Canada. This compares to a total of 16.895 for the entire 2023.

As the demand grows, other players are also taking their place with North Macedonia, Colombia, Uruguay, and several African nations "establishing themselves as vital suppliers, particularly for lower-cost products," added Kouparanis.

Read Also: Medical Marijuana To Be More Widely Reimbursed In Germany, Hemp Bill Attracts Investors And More Cannabis News

Cannabis Social Clubs: The Saga Continues

Cannabis clubs became legal on July 1, 2024, and the first such marijuana social club opened its doors on July 8 in Lower Saxony. However, across many other states, applications for cannabis cultivation associations are facing multiple setbacks.

In the first four weeks of the application process, only 43 applications for cannabis cultivation associations have been submitted in North Rhine-Westphalia (NRW), a state in Western Germany. With more than 18 million inhabitants, NRW is the most populous state in Germany. However, nearly all applications are incomplete.

Berlin's case is even more complicated as it has not yet been established who will tackle applications. The Social Democratic Party (SPD) expert Martin Matz is urging for a rapid decision on implementing the federal cannabis law that has been in effect for over four months, writes ASB Zeitung.

“The Senate must clarify the competency issue. It’s high time, there’s no other way to put it,” Matz told Deutsche Presse-Agentur. “So far, they’ve been avoiding the decision."

“They should have clarified the competency issue when the law came into effect in early April and they knew that social clubs would be allowed to grow and distribute cannabis to their members from July," Matz added. “The delay in deciding who will handle the applications of ‘social clubs’ could potentially lead to complications in the regulatory process of drug-related activities.”

In Baden-Württemberg, a German state in the southwest of the country, east of the Rhine, 38 applications have been submitted, according to SWR and as reported by CannaBizEu. However, no applications have been approved due to bureaucratic delays, and the spokesperson of the Freiburg authority said that "A statement on when the first permits can be issued is currently not possible."

The clubs must satisfy numerous requirements. For example, they must be located at least 200 meters from schools and other youth facilities and playgrounds. A club can have a maximum of 500 adults who have lived in Germany for at least six months. The application process is multi-step and involves rigorous checks on applicants' backgrounds, location requirements, and legal compliance. This is causing huge delays, and frustration among applicants.

On Feb. 23rd, Germany became the third country in the European Union to legalize adult-use cannabis after Malta and Luxembourg. On April 1, the first pillar of the law took effect allowing adults over 18 to legally possess up to 25 grams of dried cannabis flower and cultivate up to three marijuana plants at home.

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• German Medical Marijuana Producer DEMECAN Comes Close To $109M Valuation With New Funding Round Led By US-Based Investor

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