Germany Legal Cannabis Market Size, Share & Trends Analysis Report By Source (Hemp, Marijuana), By Derivatives (CBD, THC, Others), By End Use, And Segment Forecasts, Key Companies And Competitive Analysis
Published Date: May - 2025 | Publisher: MIR | No of Pages: 260 | Industry: healthcare | Format: Report available in PDF / Excel Format
View Details Buy Now 2999 Download Sample Ask for Discount Request CustomizationGermany Legal Cannabis Market Trends
Germany legal cannabis market size was approximated at USD 37.15 million in 2024 and is anticipated to expand at a CAGR of 14.09% between 2025 and 2030. Market growth is propelled by factors including the increasing use of cannabis to treat chronic conditions, positive legal developments in the nation, escalating research activities concerning its therapeutic applications, and enhanced adoption and integration of cosmetics CBD products. As an example, in September 2023, Cronos Group Inc. introduced the medical brand PEACE NATURALS in Germany. The firm inked a distribution deal with Cansativa Group, a medical cannabis distributor in Germany, in July.
Additionally, supportive government policies and surging demand for CBD-infused products in Germany drive market expansion. For example, the overall stance of the European Union (EU) has been taken up by Germany, which permits some type of reasonable sale of non-food CBD items if they have not more than 0.2% delta-9 tetrahydrocannabinol (THC ). In addition, Küsten CBD, a German CBD cosmetics brand, provides CBD cosmetics, such as Cooling gel for accompanying symptoms of muscle tension, osteoarthritis, and bruises; Warming gel for joint pain and back pain; Tattoo/Body Lotion for dry skin that is prone to acne and neurodermatitis; Body oil/massage oil (Rose Dream) for body care every day, and Facial Fluid (Anti-Aging - Lime) for dry and sensitive skin.
In addition, increased incidence of chronic diseases like diabetes, cancer, and neurological disorders, coupled with intensified research activity and clinical trials in Germany, drive the market growth. For example, in October 2023, Avextra, a biopharmaceutical firm, advanced a double-blind Phase 2 clinical trial to use Belcanto in the treatment of cancer patients in palliative care. This drug gained approval from the German Federal Institute for Drugs and Medical Devices (BfArM) and the relevant ethics committees, with the initial patient to be dosed in December 2023.
There are a number of insurance providers in the German healthcare system that fuel market growth. Individuals in Germany have the option of public insurance (GKV) or private insurance (PKV). From January 2017, public health insurers have had to cover the cost of cannabis medication up to 5 ounces, which exceeds the legal quantity of 3.5 ounces or 100 grams per month. This means that Germany is one of Europe's potentially valuable markets. The insurance program covers all cannabis therapy and does not define the specific medical conditions being covered. Thus, such factors boost the country's market growth.
Apart from that, there is a great demand for other CBD-infused products like oil, cosmetics, and cannabis extracts, which are propelling the market growth. For example, in September 2021, Alternative Medical Products Inc., a cosmetic CBD product supplier to German pharmacies, introduced the CBD brand CANAVEX. It is a CBD cosmetic product marketed by pharmacists without a prescription from a doctor. This product includes high-quality CBD from EU-GMP compliant Germany, organic hemp seed oil, and vitamin E.
Government initiatives, increasing awareness of therapeutic cannabis usage, and increasing number of consumers are poised to expand the market over the forecast period. Additionally, multiple cannabis test laboratories or businesses in Germany, including AZ Biopharm, WESSLING, a division of ALS Limited, Eurofins Deutschland, and Laboratorium Dr. Liebich, enhance the market growth.
Report Coverage & Deliverables
- Competitive benchmarking
- Historical data & forecasts
- Company revenue shares
- Regional opportunities
- Latest trends & dynamics
Recent Legalization Process of Cannabis in Germany
The German Health Minister Karl Lauterbach announced plans to legalize cannabis possession up to 30 grams in October 2022. But the plans were later diluted after opposition from the European Union's executive commission. Recently, in February 2024, the lower parliament house (Bundestag) of Germany voted in favor of new laws to legalize limited use of cannabis for recreational purposes. According to the new regulations, adults are allowed to hold a limited amount of cannabis for personal purposes, but the drug is still illegal for under-18 individuals. The legislation was approved when 407 parliamentarians voted in support of the bill, while 226 lawmakers opposed it, and four members of parliament stayed away from the vote. This action is in response to a contentious nationwide debate regarding the pros and cons of facilitating the use of the drug.
On April 1, 2024, Germany enacted one of the most liberal cannabis laws on the continent by passing the Cannabis Act. The new law allows adults to carry up to 25 grams of cannabis for private use, keep up to 50 grams at home, and permit the growth of up to three marijuana plants for private use at home. Moreover, from July 1, people can buy cannabis legally through "cannabis clubs" across the nation.
The new law proposes to sell marijuana in "cannabis social clubs." Nevertheless, the members of these clubs would not be allowed to use it on the premises or anywhere within a 200-meter radius of the clubs. The clubs would be restricted to 500 members and prohibited within 200 meters of any school or daycare center.
Market Concentration & Characteristics
The legal cannabis market in Germany is driven by high innovation due to increased R&D activities on the utilization of cannabis and its medicinal values, recent legalization efforts, novel cultivation technologies, and increased CBD-infused products demand. For example, in August 2023, researchers at the Friedrich Schiller University Jena joined hands with scientists from Austria, Italy, and the U.S. and determined anti-inflammatory effects exhibited by CBD.
By engaging in M&A activity, such firms are able to augment their product portfolio, move into new geographies, and consolidate their market position. For example, in August 2023, the Munich-based cannabis firm SynBiotic SE bought CannaCare Health GmbH and its popular CBD brand Canobo to diversify its product portfolio.
The market in Germany for cannabis is expanding with the recent shift in rules and legalization by the lower house parliament. The legal framework in Germany focuses on public health objectives and allows for commercial cultivation and supply of cannabis, which further fuels the development of the market in Germany. The Federal Institute of Drugs and Medical Devices regulates the cultivation and importation of cannabis in Germany.
Market participants are following strategies, like new product development, collaborations and partnerships, and distribution deals, to consolidate their market position. For example, in January 2023, Ambari Brands Inc., a CBD products manufacturer, enhanced its European market distribution by marketing its CBD products in nearly all European nations. The company will enter France, Germany, Portugal, and Nordic Countries.
Popularity of CBD-food is increasing quickly with the help of the diverse range of benefits linked to CBD. Certain market players are boosting their market position in various locations geographically. For example, Aurora Cannabis said in May 2022 that its medical cannabis manufacturing facilities are EU-GMP certified. It will enable the company to export top-quality and premium medical cannabis in Germany.
Source Insights
Based on source, the hemp category led the market with a highest revenue share of 84.50% in 2024. Hemp encompasses a wide variety of products ranging from supplements, nutritional powders, drinks, protein & nutrition bars, animal food, and pet food. The growth in lifestyles and increasing product launches fuel the consumption of hemp products. For example, in April 2021, Rockstar Energy + Hemp (a hemp drink) was launched by PepsiCo, a food and beverage corporation, in Germany. It has hemp seed extract with guarana, ginseng, caffeine, B vitamins, taurine, and sugar.
There are several applications for hemp in commercial products, including animal feed, food, paper, textiles, biodegradable plastics, clothing, insulation, paint, and building material. Its stems are utilized for various applications - large pieces are used for fibers, and small pieces (hurds or shives) are applied in products from insulation to pet bedding. Its seeds primarily extract oils, animal feed, flour, protein powder, and food ingredients. Its leaves and flowers have various uses, including tea, compost, and animal bedding.
The segment for marijuana is forecasted to have the highest CAGR during the forecast period. The demand for marijuana in Germany will grow on account of enhanced awareness regarding the therapeutic uses and recent legalization dynamics. It has been utilized for treating Alzheimer's, multiple sclerosis, rheumatism, cancer, and AIDS, among many other diseases. For example, in May 2023, Village Farms International, Inc. introduced cannabis products in Germany. The firm introduced the products through a collaboration with IUVO Therapeutics GmbH, which is a distributor of medical cannabis within the German market.
Derivatives Insights
Under derivatives, the CBD category led the market with the highest revenue contribution of 63.61% in 2024. CBD refers to the non-psychoactive compound of the cannabis plant, and its usage is on the rise for numerous health advantages. Constant research indicates the positive impact of CBD on specific health conditions, thereby contributing further to the market growth. For example, the German Research Foundation-funded study published in the Journal of British Journal of Cancer in March 2022 stated that CBD is an antimetastatic and anti-angiogenic tumor therapy and enhances the immune system's response against tumors.
The others segment is anticipated to develop at the highest CAGR during the forecast period. This segment consists of derivatives or parts of the cannabis plant, including flavonoids, terpenes, and other minor cannabinoids. Trends like increasing adoption of minor cannabinoids, product launches, and adoption of different distribution strategies are expected to drive the growth of the segment. For example, in August 2020, Avicanna Inc. developed its supply chain business with commercial exports of CBD and CBG isolates in Germany and the U.S.
End Use Insights
By end use, the industrial use segment led the market with a revenue share of 80.26% in 20234. Hemp is utilized in Germany for a number of commercial products, such as animal feed, food, textiles, clothing, paper, paint, insulation, and biodegradable plastics. For example, Biostoffe, a German fabric producer, provides fabrics that are produced from hemp, cotton, linen, and wool. Additionally, in January 2022, VPF GmbH & Co. KG, a specialist for adhesive materials in Germany, introduced a label stock comprising totally hemp fibers. The 120 g/m2 hemp paper, which consists of pure European hemp fiber, is remarkable for printing, having a fine touch and a better wastepaper cycle.
The recreational use segment will register the highest growth CAGR during the forecast period. This segment is mostly engaged in the use of cannabis to smoke or ingest in the form of foodstuffs, edibles, and drinks. Secondly, the legalizing of cannabis for recreational usage is driving growth in the segment. For example, in April 2024, Germany legalized the possession of cannabis for recreational purposes. Finally, increased investment because of liberalization of cannabis laws drives market growth. For example, in June 2024, Organigram Holdings Inc., a cannabis producer licensed and a manufacturer of recreational products, invested USD 15.91 million in Sanity Group, which is a German firm. The Company's investment increases the already announced supply agreement between Organigram and Sanity Group.
Key Germany Legal Cannabis Company Insights
Key market participants focus on devising innovative business growth strategies in product portfolio expansions, partnerships & collaborations, mergers & acquisitions, and business footprint expansions.
Key Germany Legal Cannabis Companies
- The Cronos Group
- Organigram Holding, Inc
- Tilray Brands
- Canopy Growth Corporation
- Aurora Cannabis
- SynBiotic
- Cansativa GmbH
- DEMECAN
- Four 20 Pharma
- Avextra Pharma GmbH
Recent Developments
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In January 2025, Aurora Cannabis of Canada introduced IndiMed, the first medical cannabis product grown in Germany. It is manufactured at Aurora's EU-GMP plant in Leuna, Germany. Island Sweet Skunk, a dried flower with less than 1% CBD, is the first product of the IndiMed brand. The sativa strain has 20% THC.
In January 2025, High Tide Inc., a Canadian company, announced its entry into Germany's fast-growing medical cannabis market through the signing of a binding agreement to purchase a 51% interest in Purecan GmbH (Purecan) for around USD 5.45 million. Purecan is a pharmaceutical wholesaler based in Germany that operates an import business. It is licensed to import medical cannabis into Germany.
Stenocare, a Danish firm, in May 2023 introduced Medical Cannabis Oils in Germany in partnership with ADREX Pharma, which is focused on developing, manufacturing, and selling medical cannabis products.
Germany Legal Cannabis Market Report Scope
|
Report Attribute |
Details |
|
Market size value in 2025 |
USD 44.31 million |
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Revenue forecast in 2030 |
USD 85.64 million |
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Growth rate |
CAGR of 14.09% from 2025 to 2030 |
|
Actual data |
2018 - 2024 |
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Forecast data |
2025 - 2030 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2025 to 2030 |
|
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
|
Segments covered |
Sources, derivatives, end use |
|
Country scope |
Germany |
|
Key companies profiled |
The Cronos Group; Organigram Holding, Inc; Tilray Brands; Canopy Growth Corporation; Aurora Cannabis; SynBiotic; Cansativa GmbH; DEMECAN; Four 20 Pharma; Avextra Pharma GmbH |
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Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
|
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
Germany Legal Cannabis Market Report Segmentation
Source Outlook (Revenue, USD Million; 2018 - 2030)
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Hemp
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Hemp oil
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Industrial Hemp
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Marijuana
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Flower
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Oil and Tinctures
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Derivatives Outlook (Revenue, USD Million; 2018 - 2030)
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CBD
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THC
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Others
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End Use Type Outlook (Revenue, USD Million; 2018 - 2030)
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Industrial Use
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Medical Use
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Chronic Pain
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Depression and Anxiety
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Arthritis
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Post Traumatic Stress Disorder (PTSD)
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Cancer
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Migraines
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Epilepsy
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Alzheimers's
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Multiple Sclerosis
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AIDS
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Amyotrophic Lateral Sclerosis
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Tourettes
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Diabetes
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Parkinson's
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Glaucoma
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Others
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Recreational Use
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