FUELLED by last year’s significant progress the European cannabis industry is looking forward to further positive developments in 2022.
While there may have been a few false starts on the route out of prohibition BusinessCann ’s guest commentators are unsurprisingly up-beat in their overall outlook for the 12 months ahead.
Germany’s ground-breaking intent to deliver an adult-use market should underpin investor confidence and provide a springboard for further growth.
Writing for BusinessCann Lino Cereghetti, Chief Operating Officer at Swiss company Pure Holding says: “Due to the long-awaited opening of the cannabis market in Germany, a domino effect will spread through Europe.
An Era Of ‘Hyper-Growth’
“The point of no return has been passed and it is only a matter of time before other countries follow up with progressive regulations.”
Thomas Skovlund Schnegelsberg, CEO at Danish cultivator Stenocare picked up this theme saying: “The German position to legalize recreational cannabis could very likely stimulate more European countries to accelerate their legalization and/or evolve their current medical cannabis regulation.
“This may be trigger towards the hyper-growth in medical cannabis that expert’s predict in the coming years.”
He went on to say that the European market will gravitate towards a pharmaceutical pole.
“Health authorities are likely to increase their regulatory control of quality of imported bulk materials into Europe, and address shortcuts with GMP ‘green washing’, which is a term for cannabis that was not cultivated with Good Agricultural Collecting Practices and using for example pesticides. Higher quality standards will be enforced to secure patient safety.
“The previous era of cannabis hype will be replaced with a healthy focus on profitable business models. The European industry is maturing to meet requirements from both the authorities and investors.”
Expect An Influx Of Capital
Pete Patterson, Chief Executive Officer of Valcon Medical, took up this point saying: “With the announcement of Germany’s adult-use program, the EU market should see an influx of capital to support that market development.
“This capital will most likely favour those organizations already established and positioned to execute. Overall, we anticipate continued growth in the European cannabis markets and new expansion opportunities in some of the developing markets.”
Mr Schnegelsberg added: “We should expect more IPOs in the industry, and there is also room for merger and acquisitions that follow the example of the EMMAC/Curaleaf transaction.
“This will enable European medical cannabis companies to invest and accelerate execution of their strategy towards generating revenue.”
German cannabis lawyer Kai-Friedrich Niermann stressed numerous hurdles still lie ahead with ‘many EU member states continuing to struggle with their outdated regulations’.
A Year Of Change
He said: “Member states must recognize in their legislation that abuse for intoxication purposes is not possible with industrial hemp products, and therefore a more liberal handling is possible and necessary.”
“I’ve been working in the cannabis and CBD industry for seven years now. I’ve worked across multiple markets and multiple sectors from policy and innovation to media and events.
“And without fail, every turn of the year we hear about ‘mainstreamisation’ and ‘normalisation’ in the cannabis and CBD market. Now, for once, I genuinely believe it, ” he said.
The full interviews with our guest commentators can be found in the Comment section of the BusinessCann website, bar the interview with Mr Patterson, which will be published tomorrow.