What’s the biggest challenge advisors face when trying to understand risk in this space?

One of the challenges that we already talked about is that we don’t have case law we can rely on. Advertising is a big issue. But I also think that the licencing process is very restricted in Germany. You need an official licence for everything
down the line.

Regarding the market, medicinal cannabis is worth 190 million EUR turnover in 2020.

In April 2019, the German Cannabis Agency contracted with three companies (Aurora, Aphria, and Demecan) to cultivate cannabis in Germany and to supply 10.4 tons within the next four years. This is not enough to cover the need of the German market.

Thus, Germany depends on imports. International market players see Germany as one of the key growth markets worldwide. Positive assessments see a tenfold increase in market volume in the medical sector as possible.

CBD products
The non-medical market is currently about half as large as the market for medicinal cannabis. Germany is the biggest market for CBD products throughout the EU member states. The unclear legal assessment of non-medical CBD products currently leads to a limited availability of these products in mainstream channels such as drugstores or supermarkets. But the latest judgment of the German Supreme Court may make a change.

The biggest challenge is that the legal status of CBD in Germany is still unclear. There have been several police raids of
CBD shops on the grounds that selling CBD products to end consumers could not exclude abuse for intoxication purposes, which creates problems of legality following the latest Supreme Court judgement.

Contributing Advisors