International Cannabis Business Conference Blog – Page 46 – International Cannabis Business Conference

German Legal Cannabis Market Projected To Reach $4.6 Billion By 2034

Written by Hazel Norman on July 1, 2024. Posted in Business.

The legal German cannabis market is projected to reach an estimated $4.6 billion in value by 2034 according to a new market analysis by researchers at The Niche Research. The market analysis predicts that Germany’s legal cannabis market will experience a compound annual growth rate (CAGR) of 17.2% between 2024 and 2034.

Germany implemented the first provisions of its national adult-use cannabis legalization law on April 1st, and the home cultivation sector is already increasing in size at an exponential rate. According to a recent survey by Pronova BKK, 51% selected “Yes, I can imagine having my own cannabis to grow at home” when asked about home cultivation. Another 40% of ‘occasional’ cannabis consumers also selected that option in the survey.

A separate survey by YouGov found that 7% of surveyed German adults have already purchased cannabis seeds or clones, and another 11% reported that they will in the future. Cannabis seed banks across Europe have reported a significant sales spike due to German home cultivation legalization.

Medical cannabis was already a huge industry in Germany prior to adult-use legalization, with the country being home to Europe’s largest medical cannabis market. However, part of the CanG law involved the removal of cannabis from Germany’s Narcotics List, and with it, caps on domestic medical cannabis production. Germany imported a record 32,398kg of medical cannabis products in 2023, up 26.6% from 2022.

One could easily argue that the biggest winner of German recreational legalization so far is the nation’s medical cannabis industry. Doctors can more easily prescribe medical cannabis in Germany thanks to the CanG law, and the medical cannabis supply chain is more streamlined than ever. The changes are expected to boost Germany’s medical cannabis base from 0.03% to 1% of Germany’s population in the coming years.

Previous projections for Germany’s emerging cannabis industry include one by Heinrich Heine University Dusseldorf which estimated that adult-use legalization will create 27,000 new jobs in Germany, although that projection may prove to be too conservative as time goes along.

Consider the fact that North Rhine-Westphalia alone is planning on permitting up to 3,000 social cannabis clubs, each able to serve up to 500 members. Every one of those social clubs will create jobs, and that is just one sector of the industry in one region of Germany. If the nation’s medical cannabis industry continues to surge as social clubs and regional pilot projects launch this year, the economic potential of Germany’s emerging industry will be enormous.

Germany’s cannabis industry is currently estimated to be worth nearly 1.2 billion euros according to Euromonitor International. Euromonitor estimates that the emerging global cannabis industry is currently worth 51.4 billion euros, with that figure estimated to top 60 billion in 2025.

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Study Finds No Significant Changes In Driving Performance Following Use Of THC-Infused Edibles

Written by Frank Schuler on July 1, 2024. Posted in Science.

If there is one thing that cannabis opponents and responsible cannabis consumers agree on, it is that no one should operate a motor vehicle on a public roadway if they are too impaired to operate the vehicle safely. That is true for cannabis and any other substance, including pharmaceutical drugs.

Cannabis DUI policies should be based on science, and not fear-mongering. Arbitrary per se THC limits, such as the recently approved 3.5 ng/mL threshold in Germany, punish longtime cannabis consumers who may have elevated metabolized THC levels, yet are not impaired at the time of testing.

A study in Canada recently examined the effects of consuming THC-infused edibles and driving performance among a cohort of self-reported ‘frequent’ cannabis consumers. The results of the study, while favorable, are not justification for operating a motor vehicle while impaired.

With that being said, just because someone has THC in their system does not mean that they are impaired, and public policies need to account for that scientific fact. Below is more information about the Canadian study via a news release from NORML:

Toronto, Canada: Subjects display few changes in simulated driving performance following the ingestion of THC-infused edible products, according to data published in the Journal of Cannabis Research.

Investigators affiliated with the University of Toronto assessed simulated driving behavior in 22 subjects prior to and following the ingestion of THC-infused edibles. Edibles contained, on average, 7.3 mg of THC. Subjects’ driving performance was assessed at two, four, and six hours. Study participants were primarily “frequent users of cannabis for recreational purposes.”

Researchers reported: “Compared to [baseline], cannabis edibles produced a decrease in mean speed 2 hours after consumption. … No changes in standard deviation of lateral position (SDLP; ‘weaving’), maximum speed, standard deviation of speed or reaction time were found at any time point.” Some participants expressed a lesser willingness to drive following cannabis ingestion.

Researchers theorized that the absence of any significant performance changes may “reflect [subjects’] tolerance to the effects of cannabis” – a phenomenon that has been reported in prior studies. According to one literature review, “Patients who take cannabinoids at a constant dosage over an extensive period of time often develop tolerance to the impairment of psychomotor impairment, so they can drive vehicles safely.”

The study’s authors concluded: “This is the first study of the impact of cannabis edibles on simulated driving. … Future studies will need to control for age and determine any age-related impacts on the effects of cannabis on driving. This is especially important given that participants over the age of 50 years have been overlooked in studies of the effects of cannabis on driving and related outcomes.”

Full text of the study, “The effect of cannabis edibles on driving and blood THC,” appears in the Journal of Cannabis Research. Additional information is available from the NORML Fact Sheet, ‘Marijuana and Psychomotor Performance.’

No Next-Day Impairment Associated With Nighttime Use Of Cannabis Oil

Written by Frank Schuler on July 1, 2024. Posted in Science.

Cannabis-derived oils are very popular products in legal markets. Consumers and patients around the globe consume cannabis in oil form for various reasons, including that it is a smokeless delivery method.

Unfortunately, a growing list of legal jurisdictions are instituting per se cannabis DUI laws that punish consumers and patients for cannabis use that could be from the night before. A recent example can be found in Germany where the nation has adopted a 3.5 ng/mL threshold for THC in a driver’s system.

A recent study in Australia highlights the problem with per se THC limits, finding that impairment from consuming cannabis at nighttime does not carry over to the following day. Feasibly, a person could consume cannabis oil the night before, and exceed the 3.5 ng/mL for metabolized THC the following day even though they are not impaired. Below is more information about the recent Australian study via a news release from NORML:

Sydney, Australia: Insomnia patients exhibit no next-day impairment following the nighttime use of plant-derived cannabis extracts, according to the results of a randomized, placebo-controlled clinical trial published in the journal Psychopharmacology.

Australian researchers assessed next-day cognitive and psychomotor performance in a cohort of patients diagnosed with insomnia. Subjects in the study consumed either an oral cannabis extract containing 10 mg THC and 200 mg CBD or a placebo.

Investigators identified no differences among those who consumed cannabis or placebo in 27 of 28 performance tests. There were “no impairing effects” on simulated driving performance post-treatment.

The study’s authors concluded: “We found a lack of notable next day impairment to cognitive and psychomotor function and simulated driving performance following evening use of 10 mg oral THC, in combination with 200 mg CBD, in an insomnia population who infrequently use cannabis. … These findings confirm and extend on prior work by employing a randomized controlled trial design, a patient population that infrequently uses cannabis and who are, on average, older than participants in previous studies, and the use of a regulated product containing a higher ratio of CBD to THC.”

Clinical and observational trial data have reported that the use of cannabis products is associated with improved sleep quality in patients with insomnia.

Full text of the study, “Evaluating possible ‘next day’ impairment in insomnia patients administered an oral medicinal cannabis product by night: A pilot randomized controlled trial,” appears inPsychopharmacology. Additional information on cannabis and insomnia is available from NORML’s publication, Clinical Applications for Cannabis & Cannabinoids.

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Brazil’s Supreme Court Decriminalizes Personal Cannabis Possession

Written by Hazel Norman on July 1, 2024. Posted in Policy.

Brazil’s top court issued a landmark ruling this week, determining that the nation’s cannabis prohibition policies toward individual consumers possessing a personal amount of cannabis are unconstitutional.

Deliberations began on the personal cannabis possession case in 2015. A majority of the justices on Brazil’s Supreme Court ruled in favor of decriminalization. In their decision, the justices made it clear that it only applies to individual consumers and not distributors. What constitutes a ‘personal amount’ of cannabis in Brazil is yet to be specifically defined.

This week’s ruling builds on previous decisions in Brazil, such as a ruling in October 2023 that determined cannabis odor alone does not justify searching an individual’s home. A decision in March 2023 granted a registered NGO permission to cultivate medical cannabis domestically in Brazil after the government refused to grant permission.

In June 2022, Brazil’s top Court ruled in favor of three patients who sought to cultivate their own cannabis.

The ruling in Brazil this week is somewhat similar to court decisions rendered in a handful of other nations. In October 2018, Mexico’s Supreme Court deemed the nation’s prohibition policies against personal use to be unconstitutional.

In 2018 South Africa’s Supreme Court issued a similar ruling as Mexio’s, and in 2019 Italy’s Supreme Court ruled against personal cannabis cultivation prohibition.

Brazil now enters a growing global debate about what constitutes ‘legalization’ or ‘decriminalization’ and which nations fall into which category. Brazil’s ruling this week provides for some protections for individuals, however, it’s clearly not the same as having codified adult-use laws.

Currently, Uruguay, Canada, Malta, Luxembourg, Germany, and South Africa have officially adopted laws that expressly protect adult consumers who possess and use cannabis. Law enforcement is expressly prohibited from going after adult consumers who are within the parameters of those nations’ cannabis laws.

Brazil is in a similar category as Mexico where case law is such that cannabis prohibition pertaining to individual consumers is unconstitutional, but also, lawmakers have not passed a new measure to officially replace old policies with new ones. The saga in Mexico has gone on for over 5 years and still no changes. Only time will tell if the same proves to be true in Brazil.

CBD-Infused Gel Relieves Osteoarthritic Hand Pain In Australian Clinical Trial

Written by Frank Schuler on June 24, 2024. Posted in Science.

International researchers estimate that as many as 595 million people worldwide had osteoarthritis in 2020. It is the most common form of arthritis, affecting 7.6% of the global population.

Osteoarthritis is a degenerative joint disease that often causes pain in the sufferer’s hands. The condition can result in stiffness, reduced range of motion, swelling, and/or difficulty gripping certain objects. In extreme cases, the condition can be completely debilitating.

A team of researchers in Australia recently conducted a clinical trial involving osteoarthritis patients experiencing hand pain and the application of CBD-infused gel. According to the results of the trial, patients reported experiencing relief after treatments. Below is more information about the study via a news release from NORML:

Sydney, Australia: The daily application of a transdermal gel containing CBD relieves pain and improves the quality of life of patients with hand osteoarthritis (OA), according to open-label trial data published in the journal Nature: Scientific Reports.

Australian researchers evaluated the self-reported efficacy of transdermal CBD in a cohort of 15 OA patients. Study participants applied CBD-infused gelatin three times a day for four weeks. Self-reported measures were assessed at baseline and throughout the trial via smartphone technology.

CBD application was associated with self-reported improvements in pain, grip strength, fatigue, muscle stiffness, and anxiety.

“Pain, grip strength and QoL [quality of life] measures … were shown to improve over time following transdermal CBD application suggesting feasibility of this intervention in relieving osteoarthritic hand pain,” the study’s authors concluded. “Proof of efficacy, however, requires further confirmation in a placebo-controlled randomized trial.”

The transdermal delivery of CBD has previously been associated with reduced levels of lower back and leg pain in patients with spinal stenosis.

Full text of the study, “An open-label feasibility trial of transdermal cannabidiol for hand osteoarthritis,” appears in Nature: Scientific Reports.

Study Finds No Increase In Hospitalizations Following Legalization In Canada

Written by Johnny Green on June 24, 2024. Posted in Science.

Canada became the first G-7 nation to adopt a national adult-use cannabis legalization measure back in late 2018. The only other nation to adopt a national legalization measure prior to Canada was Uruguay in 2013, however, Uruguay still does not permit legal sales to non-residents.

Malta, Luxembourg, Germany, and South Africa have all adopted national legalization measures to some degree since Canada adopted its measure. Yet, Canada remains the only country on the planet where adult consumers can make legal purchases across the nation regardless of their residence status.

A team of researchers recently examined hospitalization data in Canada before and after adult-use legalization was implemented. The researchers determined that there was ‘no increase’ in hospitalizations post-legalization. Below is more information about the study via a NORML news release:

Toronto, Canada: Policies legalizing the use and sale of cannabis products have not led to an increase in marijuana-related hospitalizations, according to data published in the Journal of Addictive Diseases.

Canadian investigators tracked rates of cannabis-related hospitalizations in Alberta in the years prior to and following legalization. Canadian lawmakers legalized the use and sale of cannabis flowers for those ages 18 and older in October 2018. Retailers began engaging in the sales of cannabis concentrates and edible products in 2020.

Researchers identified an increase in hospitalizations among those ages 18 to 24 in the period immediately prior to legalization, but they acknowledged that there were no increases in hospitalizations following legalization among representatives of any age group.

“Legalization was not significantly associated with immediate or ongoing changes in hospitalization rates … for either younger or older adults,” the study’s authors concluded.

Separate Canadian analyses have failed to identify an increase in either traffic-related hospitalizations or ER visits attributable to cannabis-related psychosis following legalization.

Full text of the study, “Cannabis legalization and hospitalizations in Alberta: Interrupted time series analysis by age and sex,” appears in the Journal of Addictive Diseases.

44% Of German Adult Cannabis Consumers Plan To Join A Social Club

Written by Johnny Green on June 24, 2024. Posted in Policy.

In a recent nationwide survey conducted in Germany by Pronova BKK, 44% of self-reported ‘regular’ cannabis consumers indicated that they plan to join one of the country’s social cannabis clubs once they launch this summer. Another 27% of ‘occasional’ cannabis consumers also indicated that they plan to join a club.

The Pronova BKK survey involved 1,000 people in Germany aged 18 and over and was conducted in May 2024. The survey also determined the following (translated from German to English) about Germany’s cannabis consumer base:

Over a quarter of Germans consume cannabis at least occasionally, and one in ten consumes it weekly
More than half of Generation Z consumes cannabis at least occasionally
For a third of cannabis consumers, legalization does not influence consumption behavior
Among younger respondents under 45 years of age, one in ten has increased consumption since legalization
Eight percent of non-users are considering growing their own cannabis at home

Among self-reported ‘regular’ cannabis consumers participating in the survey, 51% selected “Yes, I can imagine having my own cannabis to grow at home” when asked about home cultivation. Another 40% of ‘occasional’ cannabis consumers also selected that option in the survey.

The results of the Pronova BKK survey were published shortly after the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) released its annual European Drug Report. The EMCDDA report lists that 34.7% of German adults have consumed cannabis at least once in their lifetime.

A YouGov poll that was also conducted in May 2024 found that 7% of surveyed German adults (consumers and non-consumers) have already purchased cannabis seeds or clones. Another 11% indicated in the YouGov survey that they planned to purchase seeds or clones in the future. The YouGov poll involved 3,375 German adults.

The first provisions of Germany’s CanG law took effect on April 1st, 2024. Adults in Germany can now cultivate up to three plants in their private residences and possess up to 25 grams of cannabis when away from their homes.

Additionally, cannabis was removed from the nation’s Narcotics List which is having an immediate impact on Germany’s medical cannabis industry. Germany was already the largest legal medical cannabis market in Europe, and now domestic production quotas are removed, doctors can prescribe cannabis more easily, and the medical cannabis supply chain has fewer hurdles.

In 2023, Germany imported 31,398 kilograms of medical cannabis products according to data from Germany’s Federal Institute for Drugs and Medical Devices (BfArM), a 26.2% increase compared to the previous year’s medical cannabis imports.

With domestic production quotas removed and many patients now cultivating their own medical cannabis, total imports will presumably lower by a considerable amount in Germany in 2024.

Mexico Regulators Authorize The Cultivation Of Low-THC Hemp

Written by Hazel Norman on June 24, 2024. Posted in Policy.

Mexico’s Federal Commission for the Protection against Sanitary Risks (COFEPRIS) has reportedly authorized the cultivation of low-THC hemp plants (less than 1% THC content). The announcement came in the form of a letter from the regulatory entity to Semillas Endemicas Mexicanna SA de CV, as originally reported by El Planteo.

“The official document acquired by El Planteo, dated November 17, 2023 but delivered to the company just a few days ago, details the conditions under which Semillas Endemicas Mexicanna SA de CV can operate. The permit includes the import of seeds, the processing of hemp for the extraction of cannabidiol (CBD), and the marketing of cannabidiol oil as long as the THC content in the plants does not exceed 1%.” El Planteo stated in its coverage.

“The requested health authorization must guarantee that the plant produces concentrations equal to or less than 1% of THC and under the monitoring, control and safety conditions that the competent authority deems appropriate to protect health and public order.” the regulator’s letter reportedly stated.

Mexico has a long history with the cannabis plant, with many of the nation’s unregulated cannabis farms historically supplying markets in the United States. In recent years, as cannabis policy modernization has spread across the United States, less cannabis has been smuggled into the U.S. from Mexico.

In December 2021, Mexico’s Supreme Court deemed barriers to low-THC cannabis production to be unconstitutional. The 2021 decision followed a previous Supreme Court decision in 2019 that deemed prohibition policies pertaining to the personal use of cannabis to be unconstitutional.

Despite the landmark decisions in Mexico, there was still the regulatory hurdle of COFEPRIS granting its authorization for low-THC hemp production. The issuance of authorization to Semillas Endemicas Mexicanna SA de CV by COFEPRIS marks a major milestone for Mexico’s emerging legal industry.

COFEPRIS emphasized that the issuance of this one authorization does not open the floodgates to unfettered low-THC hemp production in Mexico.

According to an April 2022 market analysis, New Frontier Data determined that “Mexico’s total 2021 imports of hemp fiber were worth $120,000, or 25 metric tons (MT). Among those, imports from the United States accounted for 63% of the total of the tariff group, with France second at 29%.”

“In 2020, Mexico’s CBD market was valued at $9.2 million.” New Frontier Data stated. “Expectations over the next seven years are for the market to reach $675 million.”

Cannabis Pilot Trial Program Expands In The Netherlands

Written by Hazel Norman on June 24, 2024. Posted in Policy.

Regional cannabis commerce pilot trials are popping up in Europe, including in the Netherlands where the official launch of more pilot trials occurred in several municipalities this week. Trials first launched in Breda and Tilburg back in December.

The municipalities of Groningen, Zaanstad, Almere, Arnhem, Nijmegen, Voorne aan Zee, Heerlen, and Maastricht were previously announced for pilot trial locations, and as of today, consumers registered as pilot participants can make legal purchases at 80 coffee shops in those jurisdictions.

The coffee shops are supplied by three domestic producers, with two more producers expected to enter the fold by September according to domestic reporting by Dutch News. Cannabis pilot trials were first proposed in the Netherlands in 2017 as part of a governing coalition agreement, but a series of delays prevented the program from launching until late 2023.

“The aim of the experiment is to ascertain whether or not it is possible to regulate a quality-controlled supply of cannabis to coffee shops and to study the effects of a regulated supply chain on crime, safety, public nuisance and public health. In order to allow the experiment to take place, special legislation must be adopted.” the Netherlands’ government stated when pilot programs were first proposed.

A proposal to expand the cannabis trials to the Amsterdam-Oost district was denied in March 2024 by members of the Netherlands Parliament. Amsterdam has long served as a top international cannabis destination.

According to a recent poll, a strong majority of residents in the Netherlands (60%) want to install regulations around the country’s cannabis industry. Regional cannabis commerce pilot trials are also operating in Switzerland, and pilot trials are expected to launch in Germany by the end of the year.

Adult-use legalization in Germany is already having a butterfly effect in the Netherlands. A survey of adults in Germany recently found that 7% reported having already purchased cannabis seeds, with another 11% indicating that they plan to in the future.

Seed banks in the Netherlands have reported significant upticks in seed orders since Germany legalized and home cultivation became permitted.