'The DEA Ruling Was A Game-Changer': Why This European Cannabis Giant Is Betting On The American Seeds Market

"Ever since the DEA clarified that cannabis seeds are federally legal, we knew it was time to come to the U.S.," says Nick Avé, general manager at Zamnesia, during an exclusive interview at MJBizCon in Las Vegas. For the pioneering European smart shop, this decision marked a significant milestone in its evolution from a European online store into a powerhouse of natural wellness products.

The DEA's clarification on cannabis seeds provided a pivotal turning point for companies like Zamnesia. Previously, cannabis seeds existed in a legal grey area, overshadowed by other facets of the industry. The ruling confirmed that seeds with less than 0.3% THC are classified as hemp, allowing for their sale and distribution across the U.S., regardless of whether they originate from hemp or marijuana plants.

This development comes at an ideal time. In 2022, the U.S. cannabis seed market was valued at $567.76 million and is projected to grow at a compound annual growth rate (CAGR) of 17.2%, reaching $2.02 billion by 2030, according to Data Bridge Market Research. Similarly, New Frontier Data estimates that the home-grow market could nearly quadruple to $4 billion by the end of the decade. This growing sector is fueled by increased legalization, with many states supporting home cultivation as part of their recreational and medical cannabis frameworks. In 2022, an estimated 6% of U.S. cannabis consumers grew their own flower, producing 11 million pounds of dried cannabis—a figure expected to rise to 15 million pounds by 2030.

Recognizing these trends, Zamnesia has focused its U.S. strategy on home-growing and cannabis seeds, products already central to its European operations—a tendency seen across the industry, as European seed companies quietly take over the American market.

"The U.S. market is just as big, if not bigger, than Europe," says Avé. With operations headquartered in North Carolina, the company is distributing seeds across most states while avoiding those with less favorable regulatory environments. "We're selling nationally, except for a couple of states where the laws are less clear."

Inside A Smart Shop Revolution

For Avé, Zamnesia's U.S. expansion represents the latest chapter in a personal journey intertwined with the company's growth. He joined Zamnesia 12 years ago, starting in customer service at a time when the company was still a modest operation. "I started in customer service, and after two years, I was asked to take on more responsibilities. Back then, we were a super small company."

Today, Zamnesia is a leader in Europe's burgeoning cannabis, psychedelic and functional mushroom markets. Often described as a "smart shop," the company blends elements of head shops and smoke shops, offering a diverse catalog that includes cannabis seeds, functional mushrooms and educational resources. "We have a broader catalog than just a regular head shop or smoke shop," says Avé. "We also do a lot of education, which sets us apart."

The company's decision to remain an online-first retailer, rather than operate brick-and-mortar stores, has been central to its success. "Physical stores, especially in Amsterdam, come with a lot of overhead and increasing regulations," explains Avé. "We've always preferred online—it's faster, more scalable and allows us to reach customers across Europe." By focusing on e-commerce, Zamnesia has been able to serve a wide variety of markets, tailoring its product offerings to comply with the diverse regulations of each country.

"We open up specific product categories for different countries and keep a close eye on laws because they change a lot," says Avé. Germany's decision to loosen restrictions on cannabis in 2023, for example, has opened new doors for Zamnesia to expand its reach. This adaptability has been key to the company's growth and is a cornerstone of its strategy as it enters the U.S. market.

Bridging The Gap Between Europe And The U.S.

Zamnesia's success in Europe was built on its ability to navigate a complex legal and logistical landscape. While Europe may be geographically small, its fragmented regulatory environment presents challenges for businesses looking to scale. "We've seen Germany open up, but the laws across Europe vary greatly. It's all about understanding where we can operate and what we can offer," says Avé.

Initially, the company attempted to sell products outside Europe but quickly encountered insurmountable logistical hurdles. Today, Zamnesia takes a market-by-market approach, tailoring its operations to meet local regulations. This approach has been especially critical for its psychedelic product offerings, which remain largely unavailable in the U.S. market. "The biggest difference between Europe and the U.S. is the type of products we can sell," Avé explains. "In Europe, we can sell psychedelic products and functional mushrooms, whereas in the U.S., we're more limited to seeds and hemp-derived products."

Despite these limitations, the U.S. presents an unparalleled opportunity. With its established reputation for quality cannabis genetics, Zamnesia is well-positioned to serve the booming home-grow market. "A state like Ohio, for example, blew my mind," says Avé. "It's one of the best markets for home growing, which I never would have guessed." This discovery reflects a broader trend in the U.S., where home cultivation is gaining traction as consumers seek to connect more deeply with the plant.

Exclusive data provided by Fast Buds, another European cannabis seed company operating in the U.S., with over 1 million unique monthly visitors to its website, further supports this trend. According to its internal consumer data, Ohio is indeed the state for cannabis seed purchases in the U.S., followed by Minnesota, Illinois, Virginia and New York. These states represent a diverse mix of emerging and established cannabis markets, highlighting the growing demand for home-growing solutions across the country.

Zamnesia's expansion isn't just about selling seeds, it's about bringing the company's ethos of education and community to a new audience. "Home-growing isn't just about saving money; it's about connecting with the plant," Avé says. By leveraging its expertise, Zamnesia aims to empower American growers, both novice and experienced, with the tools and knowledge they need to succeed.

Overcoming Logistical And Linguistic Barriers

One of Zamnesia's most impressive feats has been its ability to manage a multilingual, multinational operation. The company's website operates in six languages—English, Spanish, Dutch, German, French and Italian—making it accessible to a wide range of customers. However, building this infrastructure was no small task. "In the beginning, it was tough. We didn't even have professional translators. We'd ask customers to translate for us, and the results weren't great."

Today, Zamnesia uses a sophisticated system that connects freelance writers and translators to ensure high-quality content. However, Avé acknowledges that translation alone isn't enough. "We're working on writing native content in Spanish, for example, because translated text often misses the nuance and appeal of original writing." This commitment to authenticity and cultural relevance will be critical as Zamnesia navigates the U.S. market's linguistic and cultural diversity.

Looking ahead, Avé envisions further expansion into Latin America and other emerging markets. However, he is candid about the challenges. "Shipping seeds from the U.S. to Mexico, for example, would be logistically problematic. We'd need a local presence." For now, the company is focused on conquering the U.S. market, a task Avé describes as both ambitious and essential. "There's a lot of competition, and we've got our hands full."

By drawing on its European expertise, embracing a customer-first philosophy and investing in scalable solutions, Zamnesia is poised to make a lasting impact on the U.S. cannabis market. With an unwavering focus on quality, education and innovation, the company's journey is just beginning.

This article was originally published on Forbes and appears here with permission. It is an external, unpaid contribution. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

Photo by Esteban López on Unsplash