The partial legalization of cannabis in Germany on April 1, 2024, brought significant opportunities and challenges for the industry. Berlin, a hub for cannabis businesses, has seen a surge in activity, but hurdles remain.
Optimism and Early Successes
Nhung Nguyen, organizer of the Mary Jane Cannabis Expo in Berlin, highlighted the potential of Germany as Europe’s largest cannabis market. Key changes in the law included the legalization of home cultivation (up to three plants), cannabis supply through yet-to-be-established cultivation clubs, and the reclassification of medical cannabis, which is now as easily prescribed as Ibuprofen 800.
Two Berlin-based companies, Cantourage and the Sanity Group, have experienced substantial growth:
- Cantourage, a publicly traded company, reported its first profits this year and projects an operating profit of €3-4 million in 2024. The company benefits from the rising demand for medical cannabis, particularly with more doctors prescribing it.
- Sanity Group reversed earlier layoffs and resumed hiring, supported by a summer funding round. They aim for profitability by 2025 and anticipate a doubling of cannabis prescriptions, driven by increased physician confidence.
Growing Patient Numbers
While prescriptions via private insurance have surged, those reimbursed by statutory health insurance have only slightly increased, with 199,000 prescriptions recorded in the first half of 2024. Comparatively, Germany’s 0.4-0.5% of cannabis patients lags behind the U.S., where 1.6% of the population uses medical cannabis.
Cantourage’s subsidiary, Telecan, launched in 2023, offers telemedicine services for cannabis prescriptions. Other providers, like Quick Green, streamline the process, enabling patients to obtain prescriptions through minimal online interaction. Deliveries in Berlin are often completed within 60-90 minutes.
Recreational Use and Home Cultivation
While medical cannabis remains the primary legal avenue, recreational users sometimes exploit the system. A patient named Sophia, for instance, obtained cannabis for her medical condition but admitted to also using it recreationally. Friends of hers reportedly provided false diagnoses to secure prescriptions.
Home cultivation appeals to more experienced users but requires specialized equipment. This has boosted sales at grow shops like Farmbros, which saw a 500% revenue increase in the months following legalization. The business has since stabilized, and the company recently introduced its own line of grow tents and lamps.
Bureaucratic Delays for Cultivation Clubs
Cannabis cultivation clubs, another legal supply channel, face bureaucratic delays. Berlin’s health authority, Lageso, has yet to approve any of the 16 submitted applications, stalling their potential contribution to the market.
Political Uncertainty
The industry’s growth could be disrupted by political shifts. The CDU party has expressed intentions to repeal the legalization law. However, collaborative projects, such as Berlin’s planned cannabis model projects in Neukölln and Friedrichshain-Kreuzberg (starting summer 2025), signal ongoing local support. Similar initiatives are underway in Switzerland, Frankfurt, and Hannover, with scientific oversight from Humboldt University.
Conclusion
Berlin’s cannabis market is flourishing, driven by medical cannabis demand, innovative telemedicine solutions, and a burgeoning home cultivation sector. However, bureaucratic hurdles and potential political reversals remain significant challenges. As the industry evolves, businesses like Cantourage and Sanity Group are well-positioned to capitalize on the growing acceptance and demand for cannabis in Germany.
