Author: Johnny Green

Taking European CBD Products From Concept To Reality

Written by Johnny Green on March 13, 2023. Posted in Business.

The rise in the availability of cannabis products in many parts of the world is amazing from a consumer standpoint, and for suffering patients specifically, the boost in safe access is a tremendous blessing. More cannabis products are now legally available than ever before since the dawn of prohibition, and that is particularly true for CBD products.

Demand for CBD products is increasing around the globe. In fact, just the CBD skincare market alone is estimated to be worth hundreds of millions of dollars currently according to Verified Market Research. By 2028, that figure is expected to jump to over $3.7 billion.

Skincare products are not the only type of CBD product that consumers demand. Far from it, in fact. The beverages sector of the CBD industry is currently worth an estimated $4.52 billion and is expected to grow 25.6% CAGR according to Straits Research.

The CBD industry possesses tremendous profit potential, however, product development is much more difficult than many people think. Just because someone has a great idea for a type of CBD product does not mean that they possess the knowledge and resources to fully develop it.

Even if someone has such resources at their disposal, it may not make sense for them to manufacture products themselves, and instead, they should focus their time and energy on getting products to market and building brand recognition among consumers and patients. That is where white-label companies come in.

White-label companies help take CBD products from concept to reality, with Essentia Pura serving as one of the top white-label CBD companies on earth. I recently reached out to Nejc Rusjan, CEO & Co-Founder of Essentia Pura, to discuss white labeling, as well as his views on the larger cannabis conversation (my questions are in bold):

JG: What concerns should people have regarding CBD products (such as contamination)?

NR: CBD products are not yet regulated, neither by the FDA in the states nor by EFSA in the EU, so it is on us manufacturers to self-regulate to high standards and participate in novel foods applications.

Unfortunately, not all manufacturers do this so there is no guarantee that the consumer is getting a product that contains the amount of CBD listed on the label or that the THC level is not within the legal limits. Additionally, some CBD products may contain contaminants such as heavy metals, and pesticides, which can occur during hemp cultivation or solvents that were used during the extraction process other than CO2 extraction.

Consumers should purchase CBD products from reputable sources and look for third-party lab testing results to ensure the product is safe, compliant, and contains the claimed amount of CBD.

JG: Why is it more advantageous for a cannabis company to use your white-label or custom formulation services instead of doing everything themselves?

NR: Using our white-label and custom formulation services firstly gives a company access to market-proven, proprietary formulated CBD products, with a market-leading cannabinoid ratio and secondly, it allows them to focus on their core competencies while still offering to their customers what we believe are the highest-quality CBD products.

By partnering with a white-label provider like Essentia Pura, the cannabis company can avoid the costs of establishing an extraction facility and avoid the risks associated with developing and manufacturing new products in-house. We handle everything from product development and manufacturing to packaging and labelling, allowing our customers to focus on marketing and distribution. We like to call ourselves a one-stop solution provider for white-label CBD business needs.

JG: What do you envision Europe’s cannabis industry looking like in five years?

NR: In the next five years, the European cannabis industry is expected to grow as more countries legalise cannabis for medical and recreational use. The industry will likely become more sophisticated, with more professional growers and manufacturers entering the market. The legally compliant full-spectrum hemp extracts will not be considered novel food.

Additionally, we may see more cross-border collaborations and partnerships as companies look to expand their reach across Europe. However, regulatory issues and cultural attitudes towards cannabis may continue to be a challenge in some countries, and it remains to be seen how these issues will be resolved in the coming years.

International Cannabis Business Conference Barcelona 2023

The Global Cannabis Industry’s Increasing Momentum Was On Full Display In Barcelona

Written by Johnny Green on March 13, 2023. Posted in Business, Entertainment, Policy, Science.

The emerging legal international cannabis industry is stronger now than at any other time since the dawn of prohibition so many decades ago, and that was on full display last week in Barcelona where leading cannabis investors, entrepreneurs, activists, policymakers, and industry service providers from all over the planet gathered at the International Cannabis Business Conference on March 9th.

March in Barcelona has largely developed into the start of ‘cannabis event season’ for the international cannabis community in recent years, with the International Cannabis Business Conference partnering once again with Spannabis (held March 10th-12th) to put on the world’s largest cannabis super-event in 2023.

The two events combine for what is likely the closest thing in this world to an international cannabis community reunion, and it’s always heartwarming and inspiring to see old friends connecting (in addition to new friendships being created).

The International Cannabis Business Conference is Spain’s largest cannabis B2B event and this year’s installment came at a very crucial time for cannabis policy in Spain, as well as for cannabis policy at the continental level. Lawmakers and regulators in Spain are working harder than ever to pass meaningful legislation that will help Spain’s emerging cannabis industry reach its full potential. The same can also be said about many other parts of Europe right now.

With that in mind, it was tremendously beneficial to bring not only leaders from throughout Spain to one venue to network and discuss cannabis policy, but also leaders from other nations that are either working towards the same end goal as Spain or are farther along in the process and were able to impart their wisdom. Those leaders were able to network with each other and additionally were able to network with industry members, which is important for a multitude of reasons.

Cannabis policy reform is still a relatively new phenomenon at the international level and the global cannabis ecosystem is still largely a patchwork of laws, rules, and regulations, and that patchwork extends to efforts to reform and improve current public policies. The saying, ‘teamwork makes the dream work’ is as applicable to global cannabis efforts as anything you will ever find, so seeing leaders from all sectors of society (law, government, industry, activism) networking with each other was very encouraging and uplifting.

The International Cannabis Business Conference’s next event will be in Berlin in June. Buy your tickets today before prices go up!

As is always the case, the curriculum at the International Cannabis Business Conference in Barcelona was packed with world-class speakers who are all global leaders in their particular fields. We will be publishing videos of the panel discussions on the event’s YouTube channel, so make sure to check them out in the near future.

Below is a small sampling of photos from some of the many insightful panel discussions that took place at the 2023 International Cannabis Business Conference Barcelona B2B event:

No International Cannabis Business Conference event would be complete without an epic after-party, and this year’s event in Barcelona was no exception.

Below is a sampling of pictures demonstrating the ‘work hard, play hard’ mentality that makes the International Cannabis Business Conference’s events so special:

Why Is The Czech Republic Punishing A Cannabis Educator?

Written by Johnny Green on March 12, 2023. Posted in Policy.

The cannabis reform movement, as with any meaningful social movement, would not be possible without people spreading education. Cannabis educators are vital because without them there would be a vast knowledge void, and that knowledge void would be filled entirely by cannabis opponents as history has clearly demonstrated.

For several decades positive cannabis knowledge and information were suppressed by governments worldwide. Those that tried to spread the truth and facts were sometimes targeted. Unfortunately, that censorship continues to this day, including in countries that you may not have expected.

Robert Veverka is a journalist and director of the Czech-based cannabis magazine Legalizace. Back in October 2021, I published an article about Robert being targeted by the Czech government over his journalism, with the government accusing him of “inciting and promoting toxicomania.”

Legalizace is a bimonthly periodical focused on cannabis, as well as drug policy relating to human rights and environmental issues. Here in the United States where I live and conduct similar efforts, what Veverka did is well within the parameters of legal speech/expression. Legalizace clearly provides content that possesses significant scientific, political, and literary value.

“The prosecution, which is calculated, stigmatizing, borderline untruthful, and based on fallacious conjectures and limited interpretation by the police that the cultivation and processing of cannabis is automatically illegal or that any mention of cannabis automatically equates ‘inciting toxicomania’, comprises a dangerous precedent comparable to totalitarian repression and censorship.” Robert Veverka stated back in late 2021 regarding the initial indictment.

“I consider it my duty to fight not only for the right of Legalizace magazine to exist, but also for the rights of all print and electronic media who have ever dared mention the word ‘cannabis’ – or plan to do so in the future,” Robert Veverka went on to say at the time.

Unfortunately, the Czech Republic proceeded with the indictment and in November 2021 Veverka and his media outlet were found guilty of the allegations, and Veverka was given a one-year prison sentence contingent on a probationary period of two and a half years as well as a fine of 50,000 CZK by the district court in Bruntál following two court hearings.

“The judge mentioned that he is not competent to assess the benefits of the current legislation, the benefits of cannabis products in healthcare, or the negative effects of cannabis use, but that he must base his verdict on the existing legislation which is binding for all. He stated that according to his judgement, Legalizace magazine evidently and factually constituted the criminal offence of inciting and promoting toxicomania.” Veverka stated at the time of the November 2021 verdict in a press release.

“He did not take into account the legislative provisions allowing for cannabis to be handled legally in certain cases or the comprehensive and educational nature of the information published in the magazine. On the contrary, the judge expressed his doubts as to whether the individuals who granted interviews to the magazine were made aware of its content and overall message. Personally, I consider the verdict to be very biased and severely restrictive of the freedom of expression, the right to express political opinion, and the right to information,” Veverka also stated.

News broke this month that Veverka was sentenced by a Czech court for similar allegations, although it’s still unclear to me from afar if that is part of an appeal attempt to the previously cited charges, or if this is a separate, additional matter. Either way, one thing that I do know is that what Veverka is being subjected to is horrific and unfair, and the global cannabis community needs to rally around him.

Veverka must reportedly pay an administrative offense of €4.000 (as a defendant and a natural person) and €6.000 on behalf of his media outlet as part of the recent verdict. For anyone that is able to support Robert Veverka and contribute to his defense, bank details are below. If you are not able to contribute financially, please help spread the word on your social channels about his plight:

IBAN: CZ4320100000002900469065
BIC/SWIFT: FIOBCZPPXXX
Fio banka, as, V Celnici 1028/10, 117 21 Praha 1

The World Has Lost A Giant Of Cannabis Science – Tribute To Raphael Mechoulam

Written by Johnny Green on March 10, 2023. Posted in Science.

Some events are so monumental that people measure their lives by them. People remember where they were when humans landed on the moon. They remember where they were during the OJ Simpson high-speed chase, or when the Twin Towers fell.

I do not remember where I was when I first learned about international cannabis scientist Dr. Raphael Mechoulam, however, I will forever remember where I was when I found out about his passing today.

The world has truly lost a science giant, and for us in the cannabis community, we have lost one of the greatest minds that we have ever had in our community.

In the early hours of today (Pacific Standard Time), one of Mechoulam’s colleagues at the Israel Institute of Technology, associate professor David (Dedi) Meiri, posted the following message on LinkedIn:

Dr. Raphael Mechoulam is widely recognized as one of the greatest scientists in the field of cannabis research that the world has ever known. Mechoulam began his cannabis research in the 1960s, and is often referred to as ‘the Godfather of cannabis research,’ and for good reason.

Mechoulam and his team were the first to ever isolate and synthesize tetrahydrocannabinol in human history. The same goes for cannabidiol, cannabigerol, cannabichromene, and various cannabinoid carboxylic acids.

Virtually all current cannabis research is essentially built on the efforts of Dr. Raphael Mechoulam, whether people realize it or not. He is truly a legend and will be dearly missed. Below is Dr. Raphael Mechoulam providing the keynote address at the 2019 International Cannabis Business Conference in Berlin. Enjoy:

cannabis leaf plant cannabis leaf plant cannabis leaf plant cannabis leaf plant

Spain To Quadruple Legal Medical Cannabis Production This Year

Written by Johnny Green on March 6, 2023. Posted in Business, Policy.

Late last month lawmakers in Spain considered a cannabis reform measure, and while the measure did not pass, Spain’s emerging legal cannabis industry will undergo a fairly substantial expansion this year regardless. The Spanish Medicines Agency recently notified the International Narcotics Control Board that it plans to (roughly) quadruple the amount of legal medical cannabis grown within its borders.

As verified by Público, Spain’s Ministry of Health “has forecast a production of 23.43 tons of medical cannabis in Spain this year.” As required by international agreements, Spain has to notify the International Narcotics Board of the United Nations every year regarding how much domestic medical cannabis it projects it will produce. This year’s notification from Spain is obviously a considerable increase compared to last year.

Why It’s Not Enough

For some historical context, consider that in 2019 and 2020 Spain reported to the International Narcotics Board that it would cultivate 500 kilos each year. That figure increased in 2021 to a reported 600 kilos. The following year in 2020 the figure grew exponentially to a reported 6,000 kilos. This year’s reported forecast of 23.43 tons compared to just two years ago highlights how fast Spain’s medical cannabis industry is expanding. And yet, it’s not enough. Not even close.

The boost in cannabis production in Spain will benefit exports and research, however, it’s not going to help Spain’s regulated domestic medical cannabis industry being that Spain doesn’t really have one, at least not compared to many other nations. As pointed out by Público, only two medical cannabis pharmaceutical products are authorized in Spain right now (Sativex and Epidiolex).

As such, most patients rely on the unregulated market to source their medical cannabis products, including from unregulated clubs that operate in a ‘grey area’ of the law. Spain doesn’t just need a boost in domestic medical cannabis production – it also needs to reform its laws to embrace and develop the domestic medical cannabis industry in a way that helps as many patients as possible.

A Boost For Reform Efforts

Increasing domestic medical cannabis production in Spain is generally a good thing. If it helps suffering patients abroad via direct access to medical cannabis, that is still beneficial, and if it contributes to groundbreaking research that helps suffering patients around the world, that is also beneficial. With that being said, clearly, there is still a lot more that can and should be done.

Fortunately, Spain is about to receive a boost for reform efforts via the world’s largest cannabis super-event that starts later this week. On March 9th policymakers, industry leaders, and cannabis advocates from all over the globe will descend on Barcelona, first for the International Cannabis Business Conference (March 9th), and then for Spannabis (March 10th-12th). A limited number of tickets are still available for both events.

The two events have once again teamed up to create an opportunity for thought leaders from around the world to discuss cannabis policy inside and outside of Spain. Whenever the world’s smartest cannabis brains get together amazing things happen, and this month in Barcelona will be no exception.

Bavaria’s Health Minister Is Clearly Wrong About Cannabis

Written by Johnny Green on March 2, 2023. Posted in Policy.

I have never traveled to Bavaria, or Europe for that matter. I plan on making my first trip later this year to attend the International Cannabis Business Conference in Berlin in June. While I am excited to explore many parts of Germany, one jurisdiction that I plan on steering clear of is Bavaria. That is born out of fear, perhaps an irrational fear, regarding the German state’s reported position on cannabis, as expressed in a recent legal opinion published by Bavaria’s Health Minister Klaus Holetschek (CSU).

Obviously, there are many things that I know nothing about when it comes to Germany being that I have never traveled there, however, it is abundantly clear that Bavaria’s Health Minister despises all things cannabis. After all, various federal lawmakers in Germany are pursuing adult-use legalization as part of a governing coalition agreement and Minister Holetschek is leading the internal opposition against it.

Unfortunately for Minister Holetschek, the facts do not support his recently published ‘legal opinion,’ which I personally feel would be better described as a political hit job attempt. I have never traveled to Bavaria, but I have studied cannabis policy for multiple decades, have served on the front lines of cannabis activism for many years, and was at one point a scholarship law student. With that in mind, below are some of my thoughts and analysis regarding Minister Holetschek’s stated opinions (Minister Holetschek’s stated opinions are translated from German to English).

International And European Agreements

Many of Holetschek’s arguments seem to be based on a lack of evidence to the contrary and/or incomplete information, which are classic prohibitionist political communication tactics. Those strategies worked for a long time being that prohibition was the absolute law of the world for many years. Yet, we no longer operate in a world in which there are no examples of national-level legalization already in existence. According to Minister Holetschek, ‘above all’ the main reason why Germany should not pass an adult-use legalization measure is that it “violates international law and European law.”

“The UN drug control bodies rate a comprehensive cannabis legalization of the kind planned by the federal government in constant decision-making practice as a breach of the UN Convention on Drugs.” Minister Holetschek reportedly stated.

What Minister Holetschek fails to acknowledge in his assertion is that nothing meaningful has happened to Canada, which legalized cannabis for adult use in 2018, after Canada did quite literally what the Minister is selectively clutching his pearls about. Furthermore, the United States has allowed state-level legalization to proceed, which in itself puts the U.S. out of compliance to some degree, and nothing meaningful has happened to the U.S. federal government either. It is my understanding that both nations receive annual warnings from the UN about being out of compliance, but that is the extent of it.

It’s a safe bet that the same will prove to be true in Germany. Even if some international or continental feathers get ruffled by Germany proceeding with legalization, if history is a guide there will be nothing more than some sternly worded letters being received. Additionally, it’s absolutely worth noting that Germany’s Health Minister’s opinion regarding the EU-level component of treaties directly contradicts that of the Bavarian Health Minister, with German Health Minister Karl Lauterbach previously expressing that he was ‘certain’ that the European Union would allow Germany to proceed. People can form their own opinion, although I am going to personally rely on the opinion of the federal health minister on this one.

Protecting Youth

Minister Holetschek’s arguments regarding veiled ‘doomsday scenarios’ about youth consumption are particularly outdated.

“I cannot understand how the release of cannabis for ‘pleasure purposes’ for young people over the age of 18 should improve health and youth protection.” Minister Holetschek reportedly stated. That statement is like something straight out of the 1930s film Reefer Madness.

‘What about the children?’ is one of the most historically popular talking points used by cannabis prohibitionists. But unlike decades past, there are now many peer-reviewed studies regarding cannabis, and a growing body of pre and post-legalization public health data that can be easily acquired and examined, including data that pertains to youth consumption.

Per government data from the Oregon Health Authority, not only was there no spike in youth consumption following the launch of legal adult-use sales and outright possession legalization in 2015; youth consumption rates actually went down from 2012 to 2018 in Oregon. A broader study conducted by researchers at Michigan State University, which involved consumption survey data from over 800,000 respondents in states where cannabis sales were permitted, also found no spike in youth cannabis usage rates.

A study in 2021 conducted by researchers in Canada found ‘no significant differences’ in cannabis consumption rates before and after cannabis legalization in Canada. As of May 2022, data out of Uruguay also demonstrated no sustained changes in youth consumption rates post-legalization. If Minister Holetschek is truly worried about the youth in a post-legalized Germany, he can look at the available data and hopefully sleep better knowing that his fears are unfounded.

Public Health

“Let me be clear: I firmly oppose cannabis legalization because of the serious health risks of this drug.” Minister Holetschek reportedly stated. “Legalizing cannabis and insisting on prevention is like starting a fire and then calling the fire brigade. The Berlin traffic light coalition can’t be serious about that.”

Those statements by the minister operate on the false assumption that if cannabis is prohibited no one will consume it. To use the minister’s own wording, the fire was started a long time ago and burns at all times regardless of whether prohibition is in place or not. There is zero evidence in Germany or anywhere around the world that cannabis prohibition lowers consumption rates. From the pure consumption standpoint, the real major difference between legalization and prohibition is that people are consuming tested and regulated products in the former scenario, and consuming untested products in the latter scenario. Clearly, people consuming tested products is far superior for public health outcomes compared to forcing all consumers towards unregulated sources.

“Experiences from the USA and Canada show that the black market cannot be dried up with legalization. Rather, the black market continues to exist.” Minister Holetschek also reportedly stated.

Again, Minister Holetschek is only giving part of the overall picture via the previously cited comment. Make no mistake – the unregulated cannabis market will never be 100% diminished in Germany or anywhere else, just as unregulated tobacco products will never go away 100%, and a whole host of other times like fake Rolex watches, moonshine, and other illegal items that are bought and sold around the world every day to some degree will never go away 100%.

Right now, 100% of the adult-use market in Germany goes through unregulated sources given the fact that all adult-use sales are prohibited. Meanwhile, in Canada, a recent study concluded that during the period of 2019-2021, consumers moved from the unregulated market to the regulated market at an increasing rate year over year, with over half of Canadian consumers (55%) now reporting that they obtain their flower exclusively from regulated sources.

Not only does the transition to a regulated market benefit public health directly via the consumption of safer products, it also provides a tremendous boost to local economies and public coffers. As of a year ago, the legal cannabis industry in Canada had reportedly created over 150,000 jobs, generated over $15 billion in taxes and fees for governments of all levels, and contributed over $43.5 billion to the nation’s GDP since the start of legalization. Again, those estimates are from a year ago and obviously have only risen since then. Minister Holetschek can stick to his talking points, however, as you can clearly see the facts are not on his side and policymakers all over the world would benefit from disregarding his opinions when it comes to cannabis policy.

March 2023 Is Set To Be A Historic Month For European Cannabis

Written by Johnny Green on February 27, 2023. Posted in Business, Entertainment, Policy, Science.

The next 32 days on the European continent could prove to be one of the most historic stretches of time for cannabis public policy and the continent’s emerging legal cannabis industry. Starting tomorrow, Malta’s government will begin accepting applications for non-profit cannabis clubs.

It’s a major milestone not just for Malta, which is the only country in Europe to pass a national adult-use legalization measure, but it’s also a major milestone for the greater European industry being that Malta is the first nation in Europe to set up this kind of national adult-use licensing system. It will be very interesting to see how many applications Malta receives next month.

Malta is not the only nation set to experience a historic March 2023. As every global cannabis observer already knows, lawmakers in Germany have worked very hard to make good on their coalition agreement component relating to legalizing cannabis for adult use and implementing a regulated adult-use industry.

Germany’s Health Minister Karl Lauterbach made a formal presentation of a legalization plan back in October 2022 and has since lobbied the European Union for its permission to proceed with an official introduction of a legalization measure.

What some observers seem to have overlooked, or perhaps forgotten about, is that roughly a month ago Minister Lauterbach reportedly confirmed a timetable for a formal introduction of a legalization measure and indicated at the time that he had ‘no reason to doubt’ that a legalization measure would be introduced ‘in the first quarter of this year.’

With February drawing to a close that puts the German adult-use legalization bullseye squarely on the month of March. Whether or not Minister Lauterbach’s reported timeline proves to be accurate or not is something that time will have to determine, although, there have been no meaningful setbacks reported from what I can tell as of the posting of this article.

Additionally, cannabis enthusiasts, entrepreneurs, investors, policymakers, and industry service providers are set to flock to Barcelona, Spain in March as part of the world’s largest super-event collaboration. The International Cannabis Business Conference has once again partnered with Spannabis, Europe’s top cannabis expo, to form another super-event that is a must-attend for anyone that is serious about succeeding in the emerging cannabis industry.

The International Cannabis Business Conference will host Spain’s largest cannabis B2B event on March 9th at the L’Auditori de Cornellà, with the after-party being held at the Hotel Arts (Ritz-Carleton) Barcelona. Spannabis will follow on March 10-12th at Fira de Cornellà. The super-event is the first large cannabis conference collaboration of the year. Whenever thousands of cannabis supporters get together and network good things happen, and that will surely be the case in Barcelona next month.

Cannabis policy and industry in Europe are both at pivotal points, and being that a legal industry cannot come into existence without reform occurring first, the two are directly tied to each other. If Germany does witness the formal introduction of an adult-use legalization measure next month, it will likely set off a wave of similar political activity in other parts of Europe and that will be good news for the continent’s emerging industry.

The same goes for Malta’s cannabis club application rollout. If Malta can successfully gather, review, and approve non-profit cannabis club applications, it will have set up a bureaucratic blueprint for other nations to copy. It’s nuanced but very significant.

We will all have to wait and see what happens for cannabis in Europe in March while doing our best to temper our excitement and expectations.

Malta Home Affairs Ministry Is Reportedly ‘In Talks With A Main Bank’

Written by Johnny Green on February 24, 2023. Posted in Business, Policy.

A unique cannabis public policy and industry experiment is ramping up in Malta where non-profit adult-use cannabis clubs are expected in the near future. Starting next week, Malta’s government will begin accepting applications for non-profit adult-use cannabis clubs. The European nation became just the third country on earth to pass a national adult-use legalization measure in late 2021, with only Uruguay (2013) and Canada (2018) proceeding Malta. Non-profit cannabis clubs will serve as the backbone of Malta’s adult-use industry, and this week the nation’s Home Affairs Ministry reportedly entered into discussions with an unnamed ‘main bank’ that will be needed to help Malta’s emerging industry reach its full potential.

Access to the global banking system has proven to be difficult for certain entities in the public and private sector regarding cannabis commerce, although there are certainly examples of entities being able to successfully navigate the financial regulatory labyrinth in some instances. Still, getting consistent banking solutions pinned down is something that is a top priority for any emerging cannabis market, and Malta is no exception, so reports that there is progress on that front is encouraging.

A Somewhat Unique Model

Cannabis clubs are not a new phenomenon, so from afar, what is going on in Malta may not seem significant. After all, Uruguay and Canada both already permit cannabis clubs to operate in some fashion in certain jurisdictions. For that matter, Barcelona is home to hundreds of private cannabis clubs, albeit operating in a semi-grey area of the law. Yet, Malta is unique compared to those markets in that its entire cannabis commerce model will be based on licensed non-profit cannabis clubs. Home cultivation will be permitted, but the only way to legally purchase cannabis in Malta once clubs are implemented is via non-profit clubs.

It may seem nuanced, but as anyone that has paid attention to the ongoing cannabis banking saga will recognize this is a bit of a new wrinkle. Uruguay has experienced banking issues despite permitting non-profit cannabis clubs, but it also permits sales in pharmacies. That last component was the root of banking issues in Uruguay back in 2017. Major banks in Canada are the subject of a recent lawsuit due to alleged discrimination against cannabis companies. It will be interesting to see if Malta ever experiences the same hurdles given the fact that its legalization model is much more limited compared to Uruguay and Canada.

Helping Create The Blueprint

For many years I blogged about cannabis reform efforts in the United States, and many things have proven to be similar as I have transitioned to blogging about international reform efforts. Similar to different states in the U.S., within the international community there are clearly categories of nations when it comes to cannabis policy. Some are pro-cannabis, some are anti-cannabis, and some are seemingly indifferent. The pro-cannabis nations are doing what they can to get around international hurdles, and anti-cannabis nations are doing everything they can to cling to treaty provisions in an attempt to maintain the prohibition status quo wherever they can.

Due to international treaties, cannabis legalization cannot proceed unhindered in any nation. Even Uruguay and Canada had to consider international agreements and partnerships prior to legalizing, and even when they did proceed, they did so in defiance by some measures. In the Eastern Hemisphere things are proceeding differently. Leaders in nations like Malta and Germany are seeming to be getting more and more creative as they try to figure out a blueprint of sorts for what legalization may look like without violating agreements that extend beyond their borders. With that in mind, the banking discussions in Malta may not seem like a big deal, but if it can add to the previously mentioned metaphorical legalization blueprint in a meaningful way, it will indeed prove to be a very big deal.

Report Estimates Global Legal Cannabis Sales To Reach $59.6 Billion By 2027c

Written by Johnny Green on February 24, 2023. Posted in Business.

These are truly exciting times for the emerging international cannabis industry. After decades of prohibition policies dominating the globe, more and more countries are getting on the right side of history and legalizing medical and/or adult-use cannabis to some degree.

In addition to preventing people’s lives from being needlessly ruined, cannabis reform is helping suffering patients and ushering in a new era for an industry that has long operated in the shadows.

Legal sales will continue to increase for the foreseeable future, as reflected by a new report from cannabis data company BDSA. Below is more information about the report via a news release:

LOUISVILLE, Colo., Feb. 22, 2023 (GLOBE NEWSWIRE) — BDSA, the leading provider of market intelligence for the cannabis industry, today released its updated five-year global legal cannabis market forecast. Global legal cannabis spending grew 4.8% to $32 billion in 2022 and forecasts a compound annual growth rate (CAGR) of 13.2% from 2022 to 2027, resulting in a market size of $59.6 billion by 2027. Despite economic uncertainty and rising inflation, BDSA expects legal U.S. cannabis sales to grow 14% by the end of 2023.

“Legal cannabis spending slowed significantly in 2022 due to rapid price declines across all markets,” said Roy Bingham, Co-Founder and CEO of BDSA. “Despite this, our updated forecast predicts strong growth in the U.S. driven by developing markets, particularly the adult-use markets of Missouri, New Jersey and New York. Additionally, four of the top five U.S. markets—Florida, Illinois, Massachusetts and Michigan—will increase by a combined 9.5% in 2023, adding nearly $770 million in new spending.”

While legal cannabis sales saw rapid growth during the height of the pandemic, 2022 marked the first overall spending contractions in many mature markets throughout the U.S., with the mature adult-use markets of California, Colorado, Nevada and Oregon suffering a combined spending decline of 16.5%. While BDSA expects to see a return to growth for most mature markets in 2024, mature markets in the U.S. are expected to grow slower during the forecast period. However, several newer markets accomplished a strong expansion in 2022, and growth in new and emerging markets is expected to ramp up in the coming years. New Jersey and Montana, which launched adult-use sales in 2022, saw approximately 140% growth last year, while Missouri grew by 84% in its second full year of medical-only sales.

By 2027, adult-use sales are forecasted to contribute 78% of the total global legal cannabis spend, up from 64% in 2022. U.S. legal cannabis spending is expected to grow at a CAGR of 11.3%, from $26.1 billion in 2022 to $44.5 billion in 2027, driven primarily by the New York, Florida, New Jersey and California markets. BDSA forecasts the launch of several new adult-use markets by 2027, including Maryland and Oklahoma in 2024 and Florida and Ohio in 2025. New adult-use markets in Hawaii and Minnesota are also possible. Although BDSA does not expect any comprehensive U.S. federal regulations on cannabis in this timeframe, there is a possibility of partial reform, such as cannabis banking, within the next few years.

Globally, cannabis markets beyond the U.S. and Canada are forecast to grow at a CAGR of 40% to $9.5 billion in 2027, up from $1.8 billion in 2022. BDSA forecasts the Canadian market will see 12% overall growth this year, becoming a $5.7 billion market by 2027 at a CAGR of 6.3%. New adult-use markets and Germany and Mexico are the primary drivers of global growth, and current limited medical cannabis programs are expected to expand, primarily within the European Union and Latin America.

BDSA will cover the new market forecast report in a webinar on March 7 at 11 a.m. MT. The free webinar will explore cannabis industry growth throughout 2022, what the industry will look like by 2027, and what factors are driving growth in the U.S. and beyond. To register, visit here.

About BDSA
Headquartered in Louisville, Colorado, BDSA helps businesses improve revenues, reduce innovation risk and prioritize market expansion with accurate and actionable cannabis market intelligence, consumer research and advisory services. The company provides a holistic understanding of the cannabis market by generating insights from point-of-sale data, wholesale data, consumer research and market forecasts. To learn more, please visit bdsa.com.