Germany Forecasts Tenfold Increase in Cannabis Trade Volume
David Klein, CEO of the Canadian cannabis company Canopy Growth, predicts a tenfold increase in cannabis trade volume in Germany following the legalization of the plant. According to Klein, Germans are expected to spend over 230 billion rubles (approximately $2.5 billion) per year on cannabis.
Medical Cannabis to Drive Market Growth
In an interview, Klein stated, “We believe the [cannabis] market in Germany will grow tenfold over the next few years. The majority of sales will come from medical cannabis. This will bring significant commercial success to Canopy Growth.”
According to Klein, within two years, revenue from medical and recreational cannabis sales in Germany will increase from $500 million to $2.5 billion (from 46.2 billion to 231.2 billion rubles). This would make Germany the third-largest cannabis market in the world, behind the United States and Canada. In 2023, Americans and Canadians spent $29.6 billion and $3.8 billion on cannabis, respectively (2.7 trillion and 351.4 billion rubles).
Canopy Growth Plans Expansion in Germany
Tara Rozalowski, Chief Growth Officer at Canopy Growth, announced plans to expand the company’s presence in the German medical cannabis market. Currently, the company operates in Germany through Canopy Medical, which manufactures and imports cannabinoid-based medicines, including cannabis and hemp extracts.
Investors See High Potential in the Cannabis Industry
In the third quarter of fiscal year 2024, which ended December 31, 2023, Canopy Growth’s revenue fell by 7.8% to 90 million Canadian dollars (6.1 billion rubles), and the company reported a loss of 216.8 million Canadian dollars (14.8 billion rubles). However, revenue from cannabis sales outside Canada increased by 81%. This data suggests that the Canadian market is stagnating, and focusing on Germany could pay off.
Despite Canopy Growth’s disappointing financial results, investors have been buying up the company’s shares. Over the past two weeks, the company’s stock price has more than doubled, reaching its highest level since December of last year. This paradox is explained by traders’ high expectations for the legalization of cannabis in Germany, which will take effect on April 1. Under the new law, adult Germans will be allowed to use, grow, store, and purchase cannabis in cannabis clubs.