Europe Cannabis Market, By Type (Hemp, Marijuana and Synthetic Cannabis), Product Type (Full-Spectrum Cannabis, Broad-Spectrum Cannabis and Cannabis Isolates Cannabis Products), Component (THC-Dominant, CBD-Dominant and Balanced THC & CBD), Category (Organic and Inorganic), Strain (Indica, Sativa, Hybrid and Others), Application (Cannabis Concentrate, Cannabis Vape Juice, Cannabis Capsules, Cannabis Flower, Cannabis Oils, Cannabis Tinctures, Cannabis Topicals, Cannabis Edibles, Cannabis Medicinal Products and Others), Usage Type (Recreational and Medicinal) - Industry Trends and Forecast to 2029.
Europe Cannabis Market Analysis and Insights
Some of the driving factors propelling the market growth are growing millennial population across the globe which is more fascinated with cannabis, rising awareness regarding health benefits of cannabis, rise in incidence of diseases that require the use of cannabis, legalization of cannabis, increased usage of cannabis in cosmetic products, and increasing health expenditure has accelerated the demand for cannabis in Europe.
The cannabis market is growing in the forecast year due to several reasons such as the rising players in the market and the availability of advanced products. Along with this, manufacturers are engaged in R&D activity for launching novel products in the market.
Data Bridge Market Research analyzes that the Europe cannabis market will grow at a CAGR of 43.10% during the forecast period of 2022 to 2029.
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Report Metric
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Details
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Base Year
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2021
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Forecast Period
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2022 - 2029
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Historic Year
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2020 (Customizable to 2019 - 2014)
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Quantitative Units
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Revenue in USD Million, Volumes in Tons, Pricing in USD
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Segments Covered
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By Type (Hemp, Marijuana and Synthetic Cannabis), Product Type (Full-Spectrum Cannabis, Broad-Spectrum Cannabis and Cannabis Isolates Cannabis Products), Component (THC-Dominant, CBD-Dominant and Balanced THC & CBD), Category (Organic and Inorganic), Strain (Indica, Sativa, Hybrid and Others), Application (Cannabis Concentrate, Cannabis Vape Juice, Cannabis Capsules, Cannabis Flower, Cannabis Oils, Cannabis Tinctures, Cannabis Topicals, Cannabis Edibles, Cannabis Medicinal Products and Others), Usage Type (Recreational and Medicinal)
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Countries Covered
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Germany, U.K., Italy, Netherlands, Switzerland, France, Russia, Spain, Belgium, Turkey and Rest of Europe
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Market Players Covered
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Aurora Cannabis Inc., CANOPY GROWTH CORPORATION, The Cronos Group, Aphria Inc., Tilray, Cannabis Science Inc., SOMAÍ Pharmaceuticals Inc., IMCI Pharmaceuticals, Peace Natural Projects inc, BOL Pharma, PharmaHemp, Kiehl's, Endoca, Althea Company Pty Ltd. and IDT Australia among others
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Market Definition
Cannabis is defined as dried leaves and flowering tops of Cannabis indica or Cannabis sativa plants that are consumed or smoked for its therapeutic or psychotropic effects. Cannabis (Cannabis sativa) is a herbal drug. It contains chemicals called cannabinoids, including delta-9-Tetrahydrocannabinol (THC) and Cannabidiol (CBD). Cannabinoids, which are active compounds in cannabis, have drug-like effects on all systems of the body, including the immunological and central neurological systems continued usage of which may result in psychological dependence. Cannabis may be used to alleviate cancer symptoms and cancer treatment side effects that include pain, nausea, cachexia (loss of body weight and muscle mass), and other chronic illnesses. Applications of cannabis are widely used in food & beverages, cosmetics, pharmaceuticals, textile, chemical industries, and various other industries.
Europe Cannabis Market Dynamics
Drivers
- Legalization of medical and recreational use of cannabis
Cannabis is available in the form of tablets and topical solutions for use in medical treatments of chronic pain, cancer and others whereas it is available in the form of buds and tinctures or even in small leaves form which is smoked along with tobacco for recreational purposes.
Buying cannabis is not legal in most countries since it has properties that can make a person hallucinate ultimately resulting in a criminal offense as per any constitutional law. But its strong medicinal properties especially in the treatment of cancer encouraged the government of the countries to legalize its use for the well-being of its country’s population. Steps were taken by the government of Canada to legalize the use of cannabis both for medical as well as recreational purposes after Uruguay legalized it for the first time officially.
According to the National Institute of Cannabis Investors, 33 states have legalized cannabis for medical purposes and 11 states have legalized the plant’s recreational use. It is only a matter of time before more states follow suit and legalize cannabis to treat medical patients in their states, attract out-of-state tourists and stimulate their economies. Two states that legalized medical marijuana in 2020 were Nebraska and Mississippi. Thus, the legalization of cannabis in medical and recreation applications is driving market growth.
- Medical advantages of cannabis
Cannabis, commonly termed marijuana, belongs to the family of cannabis plants. It can be of two types namely- Cannabis sativa and Cannabis indica. It comprises Tetrahydrocarbon (THC) and Cannabidiol (CBD) contents in it. CBD helps to decide the medical use and benefits of cannabis as it possesses pain-relieving properties whereas THC is the psychoactive compound that determines the level of intoxication in a person after smoking raw cannabis.
Cannabis may also be present in food as additives, oils, or in the form of softgel capsules. CBD is generally used for medical purposes due to its non-psychotic effects and low toxicity levels, whereas, THC is used for reducing the side effects of pain in AIDS and cancer treatment. Many countries are legalizing cannabis use due to its medical properties.
Thus, the medical advantages of cannabis and its use by many researchers in the development of new medicines are driving the market growth.
Opportunities
- Standardization in cultivation practices
The cannabis industry is taking giant steps toward standardized cultivation practices for growing cannabis. The industry representatives and experts are highly convinced by the growth of the market and are working as a team on R&D of cannabis-based medical products to raise the shares at a more valuable rate. Medical marijuana alone is assumed to be worth billions of dollars in the global market and its standardized growing practices can lead the market at a very high rate.
Presently, the new lighting technology, that is, the modern indoor cultivation technology of cannabis and cell culture technology, that is, the usage of small cannabis plants for the production of hundreds of identical clones are in boom in the cultivation market of cannabis. There are many innovations in the cannabis industry every day, from HVAC systems adjustments to sensor data and Artificial Intelligence (AI) tools.
Thus, standardization in cannabis cultivation will lead to fewer amounts of defective growing practices and is a great opportunity for market growth.
- Innovation in variety of sativa products
The global cannabis business is showing tremendous explosive growth into a highly lucrative sector due to the growing technological innovations. Medical cannabis is the highest growing segment in the Europe cannabis market and is being supplied to patients via clinically prescribed cannabinoids orally. Vaporizer pens are one of the most used developed technologies which help a patient to inhale a controlled cannabis dose and are being used due to their low intoxication levels than smoking. Cannabis is available in the form of oil extracts packed in capsules and is consumed either directly or in vape pens by the patients. Epidiolex, a pharmaceutical CBD oil that can be used to treat some rare forms of epilepsy, recently received a unanimous recommendation for approval from the U.S. Food and Drug Administration (FDA) federal advisory committee. Epilepsy is the condition that appears to receive the most consistent support for use of cannabis oil, even at the federal level.
For instance,
- In July 2022, Cann Global launched its natural CBD and hemp skincare brand Fuss Pot in France. Fuss Pot is divided into two different skincare ranges: a hemp-based line and a CBD- based line.
- In August 2022, Green Monke partnered with the brand Cookies to create and introduce cannabis-infused beverages sold at Cookies retail locations. The collaboration will later expand into Europe.
Thus, such innovative varieties of sativa products with a wide variety of applications in many industries tend to be a great opportunity for the market globally.
Restraints/Challenges
Marketing and advertisement restrictions
The legalization of cannabis by the governments of different countries has been initiated but marketing and advertising of cannabis are still not fully legalized as the market has been able to wipe off the negative mindset of many people inhabiting the legalized cannabis countries.
Advertisement is the basic source for any product to gain loyalty for the brand from its consumers. The laws binding the cannabis products in the market limit the sellers to sell those products since cannabis is still held to be illegal by federal laws.
Coming to the black market of cannabis selling, the highly regulated legalized industries of cannabis in a country are forced to work under the norms and rules of the government whereas the black markets of cannabis are spreading their products through illegal actions.
The major restrictions and limitations of the Europe cannabis market that are to be followed under marketing norms are mentioned below:
- A distance of 1000 feet is to be maintained from the school or playing area of small children for the advertisements for marijuana products
- No posters are allowed to be stacked upon the backside of vehicles
- Billboard advertisements and ad campaigns in stadiums, playing arenas and shopping malls are prohibited
- In digital advertising such as Facebook and Instagram, the cannabis accounts were all shut down and banned leading to a marketing and advertising crisis for the cannabis market
Laws must be followed because they are there to execute their tasks and marketing companies cannot ignore legal requirements. Unfortunately, it restricts the cannabis industry from marketing and advertising in the relevant region. Thus, restrictions on marketing and advertising are acting as restraining factors for market growth.
Post-COVID-19 Impact on the Europe Cannabis Market
COVID-19 has negatively affected the market. Lockdowns and isolation during pandemics complicate diagnosis management and treatment. The lack of access to rehabilitation clinics will further affect the market. However, the certification received for use of cannabis, during the pandemic, showed positive growth in the market. Social isolation increases stress, despair and social support, all of which may cause a reduction in the treatment of neurological diseases during the pandemic.
Recent Development
- In May 2020, Tillray announced that it had received GMP certification in accordance with European Union standards which allows the facility to manufacture cannabis extracts in-house and can export finished cannabis products. This helped the company to expand its business.
Europe Cannabis Market Scope
Europe cannabis market is segmented based on type, product type, component, category, strain, application and usage type. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Type
- Hemp
- Marijuana
- Synthetic Cannabis
Based on type, the market is segmented into hemp, marijuana and synthetic cannabis.
Product Type
- Full-Spectrum Cannabis Products
- Broad-Spectrum Cannabis Products
- Cannabis Isolates Cannabis Products
Based on product type, the market is segmented into full-spectrum cannabis products, broad-spectrum cannabis products and cannabis isolates cannabis products.
Component
- THC-Dominant
- CBD-Dominant
- Balanced THC & CBD
Based on component, the market is segmented into THC-dominant, CBD-dominant and balanced THC & CBD.
Category
- Organic
- Inorganic
Based on category, the market is segmented into organic and inorganic.
Strain
- Indica
- Sativa
- Hybrid
- Others
Based on strain, the market is segmented into indica, sativa, hybrid and others.
Application
- Cannabis Concentrate
- Cannabis Vape Juice
- Cannabis Capsules
- Cannabis Flower
- Cannabis Oils
- Cannabis Tinctures
- Cannabis Topicals
- Cannabis Edibles
- Cannabis Medicinal Products
- Others
Based on application, the market is segmented into cannabis concentrate, cannabis vape juice, cannabis capsules, cannabis flower, cannabis oils, cannabis tinctures, cannabis topicals, cannabis edibles, cannabis medicinal products and others.
Usage Type
- Recreational
- Medicinal
Based on usage type, the market is segmented into recreational and medicinal.
Europe Cannabis Market Regional Analysis/Insights
Europe cannabis market is analyzed and market size insights and trends are provided by type, product type, component, category, strain, application and usage type, as referenced above.
The countries covered in this market report are Germany, U.K., Italy, Netherlands, Switzerland, France, Russia, Spain, Belgium, Turkey and Rest of Europe. Germany is expected to dominate the market due to rise in legalization of cannabis in the country as well as increasing usage of cannabis in various healthcare products in Germany.
The country section of the report also provides individual market impacting factors and changes in regulations in the market domestically that impacts the current and future trends of the market. Data points such as new sales, replacement sales, country demographics, disease epidemiology and import-export tariffs are some of the major pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of sales channels are considered while providing forecast analysis of the country data.
Competitive Landscape and Europe Cannabis Market Share Analysis
Europe cannabis market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, the global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth and application dominance. The above data points provided are only related to the companies' focus related to the Europe cannabis market.
Some of the major players operating in the Europe cannabis market are Aurora Cannabis Inc., CANOPY GROWTH CORPORATION, The Cronos Group, Aphria Inc, Tilray, Cannabis Science Inc., SOMAÍ Pharmaceuticals Inc., IMCI Pharmaceuticals, Peace Natural Projects inc, BOL Pharma, PharmaHemp, Kiehl's, Endoca, Althea Company Pty Ltd and IDT Australia among others.
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