European Market analysis
There are more than 740 million people in Europe amounting to twice the population size of Canada and the US combined.Â Arcview Market Research and BDS Analytics have bothÂ forecastedÂ that government-subsidized healthcare spending will make Europe one of the worldâ€™s largest medical cannabis markets.
The future of the European cannabis industry has never looked so confident. As more players enter the space, the rate of change will continue to happen. Europe is still at a very early stage of market development but offers one of the worldâ€™s most significant commercial opportunity.
Bloomberg predicts that by 2028, the vast majority of European countries will legalise medical cannabis programs to recreational cannabis. The European industry is valued at $A182 billion. â€œCurrently, in Europe, countries like Malta, Spain, Macedonia, and several others can grow cannabis medicinally providing it isnâ€™t being sold domestically.â€ Michael Yorke, CEO ofÂ CROP InfrastructureÂ (Source INN). According to a report by Energias Market Research, the global medical cannabis market is expected to grow significantly fromÂ USD 8.28 billionÂ in 2017 toÂ USD 28.07 billionÂ in 2024, at a CAGR of 19.1% from 2018 to 2024 (New York 2018).
â€œThe companies that secure a significant market share in Europeâ€”onceÂ the market opens upâ€”will likely become the largest cannabis companies in the world. Expansion into Europe poses a unique set of challengesâ€”from navigating foreign bureaucracies to ensuring compliance with UN treatiesâ€”that few have encountered in their business lives to dateâ€ (Forbes 2018).
Factors driving the growth of the medical cannabis market include
- Growing recognition of medical benefits
- Increasing demand for cannabis in the treatment of various diseases
- Increasing number of research and development activities.
â€œWith so many densely concentrated economies and favorable cannabis and CBD legislative momentum, the European markets are set to become one of the largest opportunities of our lifetime (Source INN).â€