According to a report released by Prohibition Partners and the Davos World Economic Forum, the medical cannabis market in Europe could double in size in 2019. By 2028, the value of this flourishing market is estimated to be worth €123bn. There have been many exciting developments in the last week that lend credence to these projections.
European Parliament Backs Medical Cannabis
The European Parliament has passed a resolution that recognises the medical value of cannabis, encourages EU member states to make it accessible, and pushes for further scientific research.
The UK Receives Its First Shipment of Medical Cannabis
On 1 November 2018, doctors in the UK were given the green light to prescribe cannabis to patients. And last week, the country received its first bulk shipment of medical cannabis from the Netherlands, amounting to 800 grams. The British medical cannabis startup Grow Biotech teamed up with investor European Cannabis Holdings and pharmaceutical importer IPS Specials to carry out the delivery. European Cannabis Holdings also recently hired Canaccord Genuity, a leading financial services firm, in order to attract more investment.
The European Parliament underscored in its resolution on medical cannabis that there is widespread support for legalisation. Indeed, if we take a look at key players in the European cannabis market, we can see that demand is growing.
Aurora is Expected to Start Selling Cannabis in Mid-2019
Canadian medical cannabis producer Aurora is setting up a facility in Denmark and is expected to start selling cannabis products by mid-2019. Aurora is one of several Canadian cannabis firms looking to become a strong player in Europe’s cannabis market. Other firms developing cannabis cultivation facilities in Denmark include Aphria, ICC International Cannabis, The Green Organic Dutchman, and Canopy Growth.
In the second fiscal quarter of 2019, Aurora’s sales of medical cannabis in Europe were valued at $2.4m. This new state-of-the-art facility in Denmark will produce around 8,000kg of cannabis a year. A second facility, called Aurora Nordic 2, will be complete in 2020. The firm anticipates that this facility will produce 100,000kg of cannabis a year for the European market.
Greece May Become the EU’s Top Supplier of Cannabis
Most medical cannabis in Europe is supplied by Canada, the Netherlands, and the UK, although Denmark and Portugal are looking to plant firm roots in the market. Another key contender in the medical cannabis trade is Greece, which has garnered 30 proposed investments for the production of cannabis. The total value of these investments has been valued at €350m, challenging Denmark’s approximate total of €270m.
In light of the European Parliament’s resolution and increasing investment in various countries across Europe, it will be fascinating to see how the cannabis market evolves in the coming months.