Germany’s Federal Institute for Drugs and Medical Devices (BfArM) has published the medical cannabis import figures for Q2, giving us the first concrete data on the impact its pioneering cannabis reforms have had on the market.
Since April 01, 2024, cannabis has no longer been considered a ‘narcotic’ substance in Germany, making the process of both securing and prescribing medical cannabis significantly easier.
This, as anticipated, has driven major growth in what is already Europe’s largest market, but until now this data has been largely anecdotal and thin on detail.
Imports hit the highest level to date
According to the latest data from BfArM, Germany imported 11,706kg of dried cannabis flower into the country for ‘medical or scientific purposes’.
This represents a 44% increase on Q1 (8,134 kg) and a 38% increase on Q4, 2023, which previously represented the highest level of imports in any single quarter since medical cannabis was legalised in 2017.
Year-on-year, this also represents growth of 51% on the 7,758 kg imported into the country in Q2 2023.
While this gives us a valuable insight into the spike in demand for medical cannabis post-CanG, BfArM has not provided any data on how much of this is actually sold in pharmacies.
Historically, German supply has far exceeded the demand, often seeing the amount imported more than double that sold to patients.
Demand is now catching up with supply
Bloomwell Group, one of Germany’s largest medical cannabis operators, has also recently released a report delving into the state of Germany’s private, self-funded, medical cannabis flower market post-CanG.
The report’s findings are based on Bloomwell Group’s internal data and comprehensive evaluation of the tens of thousands of prescriptions dispensed via its medical cannabis platform from January 2023 through June 2024.
It shows that not only are patient numbers increasing rapidly, rising by 400% between March and June, but that the amount of medical cannabis being prescribed to patients is rising in tandem.
Furthermore, it suggests that after the average price increased in April and May due to heightened demand and a shortage in pharmacies, the market recovered by June, leading to another decrease in the average price.
The cost of the least expensive dispensed product has dropped even further following the reclassification. This indicates that many importers have already adapted to the new conditions, ensuring that patients are not experiencing any negative price impacts due to the reclassification.
Bloomwell’s CEO and Co-Founder, Niklas Kouparanis, explained to Business of Cannabis, that, due to previous oversupply, Germany was well prepared for this spike in demand.
“Over the last year, we observed a steady decrease (in price) due to a significant oversupply in the German medical cannabis market. The market was growing at around 30% annually, but this growth wasn’t enough to match the expectations of many wholesalers, leading to an oversupply.
“Currently, there are around 200 wholesalers in Germany, importing and selling cannabis B2B to pharmacies. After April 1st, there was a rapid increase in demand, as reflected in the report. Initially, the industry was somewhat overwhelmed by this demand, leading to a slight increase in prices. However, as the market adjusted, prices began to stabilize and are now declining slightly, returning to previous levels.”
According to Bloomwell, the average price per gram is now around €9, below the average price in the illicit market.
International supply chains
Moreover, Mr Kouparanis suggested that the emergence of low-cost products has been facilitated by innovations in the supply chain, particularly through the conversion of GACP (Good Agricultural and Collection Practices) to GMP (Good Manufacturing Practice) standards.
This conversion process allows companies to import cannabis from low-cost production regions like South America and Africa, process it in GMP-certified hubs, and then offer it at competitive prices in Germany. This development has enabled the market to maintain a steady supply of affordable cannabis, something that was not possible just a few years ago.
This is reflected in the latest figures from BfArM, which show that the vast majority of product is still being sourced from Canada.
In the first six months of 2024, BfArM suggests that 11,103 kg of cannabis flower was imported from Canada, compared to 16,895 kg in all of 2023.
Mr Kouparanis explained that Canada’s oversupply issue is a significant driver behind this global distribution, with millions of grams destroyed annually due to market saturation. However, this oversupply has also created opportunities for Canadian craft growers, whose high-quality cannabis is making its way to Germany through specialized GMP hubs.
“These hubs ensure that even smaller, boutique producers can meet the rigorous standards required for the German market, further solidifying Canada’s role as a key supplier, albeit in a more segmented manner.”
Meanwhile, other markets are beginning to come into play as the demand for products increases.
“Portugal has emerged as a key player, with its production facilities scaling up rapidly. Simultaneously, countries like North Macedonia, Colombia, Uruguay, and several African nations are establishing themselves as vital suppliers, particularly for lower-cost products,” he continued.”
Prohibition Partners will delve deeper into the rapidly evolving German medical cannabis market in its German Cannabis Report in the coming weeks. The report is available for pre-order now.
