The UK is now the largest producer and exporter of legal cannabis in Europe, according to a new report.
The report, released by released ResearchandMarkets.com, is titled “Europe Cannabis Market Forecast to 2027 – COVID-19 Impact and Regional Analysis By Product Type; Application; Compound, and Country.”
The European market is expected to reach $37 billion by 2027 from $3.5 billion in 2019; it is anticipated to grow at a CAGR of 29.6% from 2020 to 2027.
The growth of the market in this region is attributed to the upgrading of regulations for medical cannabis and growth of the cannabis industry as well as an increase in microdosing. However, challenges related to cannabis hinder the market growth.
The Challenges in European Cannabis
The European countries are experiencing transformation in the regulations for marketing cannabis and related products. The changes in the regulations have allowed the cultivation, processing, and trade of the cannabis-derived products across this region. In addition, the online distribution of CBD has received more attention, and companies are emerging at a faster rate.
Back in May 2019, European Cannabis Holding (ECH) and Miller & Miller Chemicals Ltd. formed Astral Health, a new end-to-end platform, in the UK to import approved medical cannabis products. In the following weeks of May, Germany, Italy, Spain, and France were expected to announce the distribution of medical products.
There has been a significant rise in startups in the European cannabis market in the past few years. For instance, Blossom Genetics, Cannamedical Pharma, Demecan, Grass & Co, Cannaray, Rainbow, NOBL Group, Alphagreen, Sanity Group, and Daye were founded after 2015. Moreover, well-established companies are launching new products in the market. For instance, in December 2019, EMMAC Life Sciences Group launched its first unlicensed medical products in the UK and Europe.
European Legalization Would Enhance Their Hold
According to a report by the UN’s International Narcotics Control Board, before legalization, the UK has emerged as the largest producer and exporter of legalized cannabis for medical and research applications. Therefore, it is expected that legalization in the European region would further enhance the UK’s industry.
In April, 2020, a study posted on Pan European Networks Ltd, a health European website, stated that the researchers would conduct an anonymous survey among medical cannabis patients regarding their mental health and physical health, as well as examining changes in patient’s frequency of use of cannabis, dosage, and route of administration based on COVID-19-realted closures and updates. Thus, it is expected that the COVID-19 pandemic is likely to offer extensive growth opportunities for market growth.
Based on product type, the Europe cannabis market is segmented into flowers, concentrates, and others. In 2019, the flowers held the largest market share; however, the concentrates segment is expected to witness the highest CAGR during the forecast period. Based on application, the European market is segmented into medical and recreational.