In our latest CANNAtalk session, industry experts gathered to discuss how Europe’s cannabis landscape is entering a new phase of growth, regulation, and complexity, with significant implications for Canadian companies. Across Portugal, Germany, and the UK, regulatory changes are reshaping market access, supply dynamics, and competitive pressures.
Watch the stream below:
NOTABLE INSIGHTS
GERMANY
Germany has enacted landmark reforms, removing cannabis from narcotics law and introducing both medical and non-medical frameworks. The Consumer Cannabis Act allows for cannabis social clubs and pharmacy-based dispensing, while pilot projects could open retail channels by late 2025 or early 2026. Telemedicine is also expanding patient access. However, imports continue to dominate supply, creating intense competition and driving price compression.
PORTUGAL
Portugal remains a major production hub but faces heightened scrutiny. Political volatility, tighter oversight from infarmed, and recent police raids tied to compliance breaches have slowed licensing and export approvals. New requirements such as needing Certificates of Analysis (CoAs) before permits are lengthening timelines and reducing permit approvals. This has created bottlenecks and oversupply challenges, particularly for Canadian exporters.
UNITED KINGDOM
The UK lags behind other jurisdictions, with medical-only access and reliance on imports. While demand is rising, regulatory conservatism slows momentum. The market remains promising but underdeveloped compared to Germany or Australia.
Implications for Canadian Producers
For Canadian producers, these shifts amplify both risk and opportunity. Domestically, oversupply and price compression persist, with flower losing market share to convenience categories like prerolls and vapes. Wholesale flower prices have dropped from $1.50 to as low as $0.75 per gram in recent weeks. Producers must focus on efficiency by dialing in grows, cutting costs, and diversifying into multiple product categories to remain competitive.
International Opportunities and Brand Strategy
Internationally, brand strategy is critical. Companies like Lot420 have shown the value of building presence on the ground by attending events, consignment deals, and patient engagement rather than relying solely on wholesale exports. Brand loyalty and market visibility can buffer against price compression. However, regulations around GACP and GMP are tightening, with stricter oversight, documentation, and supplier qualification requirements that exporters must meet to remain compliant.
An opportunity of note comes from an otherwise “hands-off” market—the United States. Traditionally considered too risky for most Canadian brands, New York now presents an intriguing entry point. Through its branding license, Canadian citizens can apply to bring their brand to market by partnering with a U.S. cultivator, without directly growing cannabis themselves. This opens the door for Canadian companies to establish a presence in the U.S. while mitigating many of the operational risks.
Consumer Demand and Market Trends
Consumer demand is also reshaping markets. In Canada, buyers are 'trading down' into value products, while trim and byproducts are gaining value in B2B sales. International markets mirror some of these shifts, though access to 2.0 and 3.0 products (vapes, extracts, edibles) varies widely: Australia and the UK allow them, Germany currently does not, and Israel is only beginning to scale. In Europe, prescribers and pharmacists remain gatekeepers, shaping patient access and demand.
Long-Term Outlook
Looking forward, Canadian firms must balance short-term export opportunities with the long-term reality of European domestic cultivation scaling up. Markets like Poland and France are emerging, with Poland already launching products and offering attractive margins. The U.S. remains a future prize, though federal harmonization is likely years away.
What We Can Expect
Canadian cannabis companies should expect continued price compression both domestically and internationally, making operational efficiency and adaptability critical. Strengthening compliance systems to align with evolving GACP and GMP requirements will be essential for maintaining access to export markets. At the same time, investing in brand presence and building strong local partnerships in Europe will help companies differentiate as competition intensifies. Diversifying product portfolios to meet rising consumer demand for convenience-driven formats, such as pre-rolls and vapes, will also be key to sustaining growth. Looking ahead, emerging markets like Poland, France, and Australia present near-term opportunities that could balance pressures in more mature jurisdictions. Ultimately, Europe is moving toward a more regulated and competitive environment, and only well-prepared, agile, and consumer-focused Canadian companies are positioned to thrive.
