Germany’s medical hashish imports reached 20.1 tons in Q3 2024, a considerable improve from earlier quarters. This surge follows the April 2024 revision of the nation’s narcotics regulation, which has facilitated better entry to medical hashish.
Regardless of this development, medical hashish customers nonetheless symbolize lower than 0.3% of the inhabitants, indicating vital potential for market enlargement.
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Rejection Charges And Market Dynamics
Traditionally, roughly 40% of imported hashish in Germany has been both rejected or re-exported, with pharmacies buying about 60% of imports, in response to analyst Pablo Zuanic of Zuanic and Associates.
In Q3 2024, as importers rushed to construct inventories, rejection charges possible elevated, probably leading to pharmacies buying between 50% and 55% of imports.
This implies that out of the 20.1 tons imported, pharmacies acquired between 10 and 11 tons, doubling the degrees seen earlier than the April reforms.
Shifts In Exporter Market Shares
Canada stays the biggest provider, exporting 8.1 tons to Germany in Q3 2024. Nonetheless, its market share declined to 40% from 59% in Q1. A number of Canadian corporations actively function in Germany’s hashish market, together with Aurora Hashish Inc. ACB, Cover Development Company CGC, and Tilray Manufacturers Inc. TLRY, leveraging their experience in cultivation and distribution to fulfill the rising demand.
Portugal‘s share elevated to 21%, with Denmark at 13%, and Spain and Uruguay every contributing 5%. Notably, the Netherlands’ share dropped to 2% from 8% in 2023.
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Implications For The Market
The annualized worth of Germany’s medical hashish market is estimated at €352 million (US$375 million). In line with Zuanic, “With lower than 0.3% of the inhabitants at the moment utilizing medical hashish, the market stays underdeveloped however has immense development potential.”
Zuanic explains that if Germany reaches a 1% penetration price, just like Canada’s, “that might suggest greater than 4-5x upside.” Nonetheless, attaining this development would require addressing key challenges. “Extra constant and ample provides throughout worth and high quality spectrums, new codecs being allowed, and streamlined prescription methods.”
Regardless of these hurdles, Zuanic says he’s nonetheless optimistic. “It’s nonetheless early days, however the German medical hashish market may speed up as these points alongside the availability chain enhance,” he added, signaling the potential for vital enlargement on this nascent market.
Learn Subsequent: Tilray Joins German Hashish Fiesta With First Domestically Grown Strains
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