Is Germany Set To Become Next Cannabis Giant? 'We Tripled Within One Year,' Says Industry Insider

The Benzinga Cannabis Capital Conference brought together global cannabis leaders, including Finn Hänsel, managing director and founder of Sanity Group.

Sanity Group is one of the leading cannabis companies in Germany, focusing on medicinal cannabis, CBD wellness products, and adult-use cannabis. With Germany's recent regulatory changes, Hänsel highlighted the company’s strategy for navigating the rapidly expanding European cannabis market.

The Impact of Germany's New Cannabis Law

Germany’s landmark cannabis bill, the Cannabis Control Act (CanG), which took effect in April, is a pivotal moment for the European cannabis market. As Hänsel described, this change is already driving substantial growth. "Just to give an example, we did 1 million euros in revenue in January. Now, in October, we're probably doing three. So we tripled within one year just because of this regulatory change," Hänsel said, illustrating the transformative impact of Germany’s relaxed regulations on medical cannabis.

Hänsel emphasized the potential for an even larger shift, predicting an increase in the number of cannabis patients in Germany. "We have 0.2% of the population that are cannabis patients. In Germany, I think it can go up to one, two, or even 3% because the regulation is so easy for medical cannabis now," he said.

Preparing for Adult-Use Cannabis in Europe

While the medical cannabis market is growing, the introduction of adult-use cannabis is on the horizon. Hänsel shared that Sanity Group is preparing for this shift. "With our pilot project in Switzerland, I think we are perfectly prepared to also roll out those pilot projects all over Germany," he said.

Despite these opportunities, Hänsel cautioned that the final regulations for adult-use cannabis in Germany are still in development, leaving some uncertainty about how the market will evolve.

Overcoming Supply Chain Challenges

Hänsel also pointed out the logistical hurdles that come with the growing demand for cannabis products across Europe, particularly in sourcing enough supply to meet the rising demand in Germany. "Now the biggest challenge is to get enough product into the country. That's the reason why we have to work with cultivators in Canada, but also South Africa, South America, [and] Australia," Hänsel said.

Sanity Group is focused on assuring that its supply chain is solid and sustainable. "We always look at what kind of mindset [cultivators] have, like, do they grow sustainably? Do they have the right mindset in terms of treating the employees?" Hänsel said. He elaborated on the company's commitment to sustainability, noting the use of aquaponic cultivators who prioritize environmentally friendly growing methods.

Europe's Growing Cannabis Market

As Hänsel pointed out, the developments in Germany and Europe present a significant opportunity for cannabis businesses worldwide. "Germany is definitely the biggest country that probably will federally legalize cannabis," he said, underscoring Germany's potential to become a significant player in the global cannabis industry.

Hänsel highlighted the growth of Europe's cannabis market and its relevance for North American companies: "It's very exciting also for the cannabis community [in] North America to look over the Atlantic Ocean and see what's going on in Europe."

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