Germany was already home to Europe’s largest legal medical cannabis market before the first provisions of the nation’s adult-use legalization measure took effect on April 1st, 2024. When the first provisions of Germany’s CanG law were enacted at the start of April, the nation also became the largest country on earth to implement national adult-use reform.

The nation’s cannabis policy and industry landscape will forever be measured as occurring before or after 2024 due to how pivotal the year 2024 is proving to be. Nearly every facet of Germany’s industry and cannabis community is evolving this year, with the most notable items listed and discussed below.

Personal Consumption

People in Germany who are 18 years old or older can now consume cannabis in private settings without the fear of prosecution and can possess up to 25 grams of cannabis when away from their residences. Cannabis consumption is not new in Germany, with 4.3% of German adults reporting that they use cannabis on a monthly basis and 8.8% reporting that they have used cannabis at least once in the last year.

However, the way that people consume cannabis in Germany is undergoing a technological revolution, with many device and gadget makers eyeing the German cannabis consumer market with their latest creations. According to a recent analysis by market researchers, the global handheld cannabis vaporizer market is projected to reach $15.9 billion in value by 2031, and Germany will play a big role in the growth of the sector.

Home Cultivation

On April 1st Germany became home to the largest potential home cultivation market in Europe, with Germany’s roughly 70 million adults becoming eligible to cultivate up to three plants in their private residences. Personal cannabis cultivation is already proving to be very popular with adult consumers in Germany, as reflected by a recent YouGov poll which found that 7% of poll participants indicated they had already purchased cannabis clones or seeds since legalization took effect. Another 11% of poll participants stated that they intend to purchase clones or seeds in the future.

In addition to clones and seeds, Germany’s newly afforded home cultivation freedoms are increasing sales of many other sector products, including growing mediums, nutrients, lighting, environmental control systems, odor control, harvesting tools, and drying equipment. Home cultivation educational programs and materials are also experiencing increased demand in Germany.

Social Clubs

Starting next month, Germany will begin permitting social cannabis clubs in many parts of the country. Social clubs are a key provision of ‘Pillar 1’ of Germany’s CanG law and will play a vital role in legally sourcing adult-use cannabis in Germany. Earlier this month the Bundestag approved new policies that afford states more authority to set limits on social cannabis clubs, so the prevalence and scope of clubs will likely vary throughout the country.

It is going to be very interesting to see how creative social cannabis club operators get once clubs are launched. The basic premise of social clubs is for adults to become members and to source legal cannabis through the social clubs that will cultivate cannabis for members. However, cannabis clubs can employ paid workers to carry out various tasks that are not necessarily directly related to the cultivation or distribution of cannabis, and clubs will likely offer ancillary products and services that could prove to be very engaging (and lucrative). Only time will tell what social club operators come up with, and conversely, what local and national regulators will allow.

Pilot Trials

‘Pillar 2’ of Germany’s cannabis legalization model revolves around the launch of regional adult-use cannabis commerce pilot trials. Pilot trials permit a certain number of entities to cultivate cannabis that is then sold to registered customers at licensed outlets. Such pilot trials are already underway in parts of the Netherlands and Switzerland with no reported issues.

Pilot trials in Germany are expected to be more widespread than what is in place in Switzerland and the Netherlands, both in the number of jurisdictions where they operate and the number of participants they will serve. German pilot trials are expected to begin by the end of the year, and when combined with social clubs and home cultivation, will serve as the foundation for legal adult-use cannabis access in Germany.

Medical Cannabis

Often lost in the hype and chaotic nature of the rise of adult-use cannabis in Europe is the fact that Germany’s medical cannabis industry is currently undergoing dramatic changes. Part of Germany’s new CanG law involved the removal of cannabis from the nation’s Narcotics List and the removal of quota limits for domestic medical cannabis production. Doctors in Germany can prescribe cannabis more easily, the medical cannabis supply chain has fewer hurdles and hoops, and domestic production is set to surge.

As a result, the German medical cannabis industry is projected to experience tremendous growth in the coming years. A February 2024 market analysis by Zuanic & Associates determined that if 1% of Germany’s population became cash-paying medical cannabis patients, the German medical market could reach €1.7Bn in value by the end of 2025. Germany’s medical cannabis industry is a major winner of German adult-use legalization.

Cannabis products that contain high percentages of THC generate a lot of headlines in Germany these days, and rightfully so. Germany recently legalized the cultivation, possession, and consumption of high-THC flower by adults, and the nation’s medical cannabis industry continues to thrive as well.

However, Germany’s domestic hemp industry is making strides too, with consumer demand for hemp-derived products trending upward. Some consumers in Germany prefer CBD products with little to no amounts of THC, as well as products derived from hemp containing ‘alternative cannabinoids’ such as delta-8 THC.

Leadership in Germany recently announced that enforcement authority for the “authorization and monitoring of the use of cannabis for scientific purposes” will be vested in the Federal Agency for Food and Agriculture. Cem Özdemir, the current Federal Minister of Food and Agriculture, has indicated that a major hurdle facing Germany’s emerging hemp industry could be going away soon.

“Cem Özdemir, Federal Minister of Food and Agriculture, announced the abolition of the so-called “intoxication clause” at yesterday’s Parliamentary Evening of the Cannabis Industry. This special German rule means that even very low levels of THC in industrial hemp can lead to criminal liability, raids and plant closures.” stated the Cannabis Industry Association (BvCW) in its initial coverage (translated from German to English).

“In conjunction with other bureaucratic hurdles, this has hindered the use and processing of industrial hemp in Germany. This unnecessary competitive disadvantage is now finally being abolished. The cannabis industry association has campaigned intensively for this in recent years.” the Cannabis Industry Association (BvCW) also stated.

“Imagine if dealers and producers of non-alcoholic beer were subjected to raids and punished because they could distill a schnapps from the remaining alcohol. In practice, such a complex extraction does not take place with industrial hemp,” said BvCW managing director Jürgen Neumeyer. “This senseless noise clause has increasingly led to economic damage and bankruptcies in recent years. The abolition is urgently needed and we are therefore very pleased! This is an important step towards re-establishing the German industrial hemp industry. We look forward to a draft from the BMEL and will continue to support the parliamentary process constructively.”

Soon, Germany will launch social cannabis clubs and adult-use cannabis commerce pilot trials. Adult consumers will be able to become members of a social club and/or join a local pilot trial and legally source cannabis products that contain THC.

As previously mentioned, adults in Germany can already cultivate high-THC cannabis in their homes as of April 1st, 2024. Punishing people for cultivating or consuming hemp-derived products is more ridiculous than ever.

Cannabis advocates have long pushed for this type of reform, including in the lead-up to the passage of the new CanG bill. Unfortunately, opponents were able to maintain the status quo under the premise that consumers could make intoxicating products out of hemp.

“If access to THC-containing flowers is to be made possible through clubs and home cultivation anyway, why should anyone go to the trouble of extracting low doses of THC from CBD flowers for several hours in their own home workshop?” Krautinvest.de pointed out in its initial reporting.

“Speaking at the International Cannabis Business Conference Berlin last year, industry veteran and President of EIHA Daniel Kruse said: “I would simply cancel this clause. All stakeholders will advocate for its abolition.” Business of Cannabis stated in its initial reporting.

“The debate about the ‘misuse of hemp’ needs to be brought to an end. Hemp has huge potential if the clause is abolished. Industrial hemp would lead to more sales than medical and recreational put together in Germany.” Daniel Kruse also stated at the International Cannabis Business Conference in Berlin according to Business of Cannabis.

In addition to causing headaches in Germany, the lack of comprehensive hemp and CBD industry reform has also caused similar issues throughout Europe. The European CBD and hemp-derived consumables industries are here to stay, and governments at all levels would be wise to work toward harmonizing related laws, rules, and regulations.