You’ve probably heard a lot about the legalization of recreational marijuana in Canada and the United States, and are up to date on the rapid expansion of medical and recreational marijuana in the US. But how much do you know about marijuana markets in Europe?

Cannabis market research firm Brightfield Group has released its 2019 European CBD and Cannabis Market report. Analyzed in this report are the cannabidiol (CBD) and cannabis markets in Europe and key European countries. Here are some key points you should know about Europe’s fast-growing marijuana market.

Expansion of markets in Europe due to the EU and WHO

 European CBD and cannabis markets are still at a very early stage. However, Brightfield Group pointed to key actions by the European Union (EU) and the World Health Organization (WHO), in particular, to help expand European CBD markets.

The EU’s European Food Safety Authority (EFSA) is considering approving the use of CBD in dietary supplements with a daily dose of up to 130 mg. A decision is expected any day. In January, the WHO recommended reclassifying cannabis and removing CBD from the list of banned substances.

European medical cannabis market to grow to nearly $8 billion by 2023

 Europe’s legal medical cannabis sales totaled $316 million in 2018, Brightfield Group estimates. However, the market is expected to grow at a rapid annual rate of 83%, reaching nearly $8 billion by 2023.

European CBD market to grow to nearly $1.7 billion by 2023

 Either marijuana or hemp can be used to extract CBD. In European countries, the “CBD market has become significantly more established than medical cannabis,” according to the Brightfield Group report. In Europe, CBD is seen as both a wellness product and a tobacco substitute.For example, Brightfield Group forecasts that the European CBD market will grow from $318 million in 2018 to nearly $1.7 billion by 2023, a CAGR of 42%.

German medical cannabis market expected to reach $2.7 billion by 2023

The largest international medical cannabis market outside North America is Germany. Several leading Canadian and U.S. marijuana producers supply products to the German market. For example, Brightfield Group estimates that the German medical cannabis market was $73 million in 2018 and is expected to grow to $2.7 billion by 2023.

Currently, the largest European CBD markets are the UK and Austria

While Germany is the largest medical cannabis market in Europe, the largest European CBD markets are the United Kingdom and Austria.  Brightfield Group forecasts that by 2023, the CBD market in the UK and Austria will reach $440.8 million and $137.4 million, respectively.

Germany will be the largest CBD market in Europe in 2023 

Not for long, the UK and Austria will be the largest European CBD markets. By 2023, Brightfield Group expects the German CBD market to be the largest in Europe, with sales of nearly $605 million. That’s a significant increase from last year’s estimated German CBD sales of just under $38 million.

Currently, the largest European CBD markets are the United Kingdom and Austria.

While Germany is the largest medical cannabis market in Europe, the largest European CBD markets are the United Kingdom and Austria. Brightfield Group forecasts that the CBD market in the UK and Austria will reach $440.8 million and $137.4 million, respectively, by 2023.

Germany will be the largest CBD market in Europe by 2023

Not long from now, the UK and Austria will be the largest European CBD markets. By 2023, Brightfield Group expects the German CBD market to be the largest in Europe, with sales of nearly $605 million. That’s a significant increase from last year’s estimated German CBD sales of just under $38 million.

The fastest-growing European markets for medical cannabis are expected to be in the U.K. and France

While Germany may currently be the largest medical cannabis market in Europe and well on its way to becoming the largest CBD market, the country has no claim to the fastest-growing medical cannabis market. According to the Brightfield Group, that honor goes to the United Kingdom and France.

Portugal is becoming one of the most important distribution centers for medical cannabis

Portugal has become one of the most important centers for the production and distribution of medical cannabis. Various companies from Canada and the United States have invested in production facilities in the country. Of particular note are the lower production costs due to operating in Portugal.

In the Netherlands, the legal marijuana market is currently very small, but is estimated to exceed $1 billion by 2023

Although Dutch cafes are known for offering marijuana products to recreational users, such sales are not actually legal because the Netherlands has very restrictive medical cannabis regulations, so the legal marijuana market is currently small – only around $1.1 million last year. However, the Brightfield Group projects that the Dutch legal marijuana market will exceed $1 billion by 2023.

Another two European countries test the terrain

Nowhere in Europe is recreational marijuana legal yet. But two European countries are already testing.  Among them is the Netherlands. The Brightfield Group believes legalizing recreational marijuana in the country will encourage rapid market expansion. Another country is Spain, which is experimenting with recreational pot. Decriminalized recreational cannabis use has been allowed in non-profit social clubs, primarily in Catalonia, Navarre, and the Basque Country.

Conclusion

What investors can take from the Brightfield Group report is that Europe could be more important to marijuana producers than Canada and the U.S. in the near future.