Opportunities for the European Cannabis Industry in 2025

2024 is a dramatic year for the global cannabis industry, witnessing both historic progress and worrying setbacks in attitudes and policies.
This is also a year dominated by elections, with about half of the global population eligible to vote in national elections in 70 countries.
Even for many of the most advanced countries in the cannabis industry, this means a significant shift in political stance and has led many countries to lean towards adopting strict measures or even policy regression.

Despite the significant decrease in the ruling party’s vote share – with over 80% of political parties experiencing a decline in vote share this year – we still have reason to be optimistic about the prospects of the cannabis industry in the coming year.
What is the outlook for the European cannabis industry in 2025? Listen to the expert’s interpretation.
The positioning of cannabis drugs in the global healthcare system
Stephen Murphy, CEO of Prohibition Partners, a well-known European cannabis industry data agency, believes that the cannabis industry will accelerate its development in the next 12 months.
He said, “By 2025, the cannabis industry will accelerate its automation transformation towards various sub sectors such as decision-making, operations, marketing, and finance. As more and more companies achieve positive cash flow, we will see the emergence of new pursuers and a willingness to take necessary risks that may drive significant policy changes
Next year will also be a critical moment, where the focus will no longer be limited to cannabis itself, but on deeper integration with healthcare. The main growth opportunity lies in positioning cannabis drugs as a core component of the global healthcare system – a step we believe will redefine the industry’s trajectory
Senior analyst at Prohibition Partners stated that the cannabis industry will continue to develop, but not without challenges. The overly bureaucratic practices of some countries will continue to hinder market growth. Balancing availability, quality control, and regulation is crucial for establishing a sustainable and socially beneficial cannabis framework. As countries learn from each other’s experiences of success and failure, the development model of the medical cannabis and adult cannabis markets is gradually emerging.
However, there is still enormous potential in the global industry that has not been unleashed, and given the continuous progress of the past few years, it seems that this potential will eventually be realized through some means.
Germany’s milestone reforms will continue to inspire momentum in Europe.
This year, Germany has semi legalized adult use of marijuana. Citizens can use marijuana in designated areas without worrying about being sued, hold marijuana for personal use, and also grow marijuana at home for their own use. 2024 is a ‘historic year’ for Germany’s cannabis policy, and its widespread decriminalization represents a ‘true paradigm shift’ for the country.
A few months after the German Cannabis Act (CanG) was passed in April this year, marijuana social clubs and private cultivation have also been legalized. Just this month, legislation allowing Swiss style adult marijuana pilot projects was also passed.
Given these milestone policy advancements, Cannavigia stated, “Although commercial sales are still restricted, these changes highlight the momentum for broader legalization in Europe.” Cannavigia has been actively involved in entertainment cannabis pilot projects in Switzerland and Germany to help stakeholders ensure compliance.
Looking ahead, the company believes that the expansion of the German recreational cannabis pilot project will provide valuable insights into consumer behavior and regulatory frameworks, paving the way for broader legalization efforts.
Philipp Hagenbach, co-founder and Chief Operating Officer of Cannavigia, added, “Our pilot projects across Europe have provided us with valuable insights into consumer behavior and regulatory needs. These projects are key foundations for achieving broader legalization and market recognition. In addition, we need to take more measures to combat the illegal market until we find the ultimate commercial pathway for recreational cannabis distribution
As growth continues, there may be consolidation in the German medical cannabis market
Perhaps more influential than Germany’s relaxation of recreational marijuana regulations is the removal of marijuana from the list of narcotics. This has driven the astonishing growth of the German medical cannabis industry and had a profound impact on the cannabis business throughout Europe and even across the Atlantic.
For Gr ü nhorn, the largest medical cannabis online pharmacy in Germany, 2025 is the “year of transformation”, forcing it to “quickly adapt to new regulations”.
Stefan Fritsch, CEO of Gr ü nhorn, explained, “Although most planned cannabis cultivation associations have abandoned halfway and the planned commercial retail of cannabis, the second pillar of legalization, is still delayed, cannabis pharmacies like Gr ü nhorn that exchange medical cannabis prescriptions through doctors or remote consultations are the only fully effective solution so far
The company also emphasized further changes to the German medical cannabis system, which simplifies the process of patients reimbursing prescription drugs through medical insurance and greatly increases the number of doctors who can obtain cannabis prescription rights.
These changes have overall improved patient care, enabling people to have faster access to methods for treating chronic pain, endometriosis, insomnia, and other illnesses. The decriminalization and de stigmatization of marijuana therapy also means that patients no longer feel like they are engaged in illegal activities, thereby promoting a safer and more inclusive healthcare environment, “Fritsch added.
At the same time, he also warned that the new government cannot revive the failed marijuana ban policy after taking office, as the new government is likely led by a political party proposing to overturn marijuana reform.
Marijuana lawyer Nielman agrees with this, stating that the healthcare market may experience explosive growth after the repeal of drug laws, but consolidation is necessary afterwards. In the tense relationship between marketing and legal requirements, it is crucial for the industry to operate in a legal and compliant manner in terms of quality, medical requirements, and advertising
The demand for medical cannabis in Europe continues to grow
The demand for medical marijuana in European countries has significantly increased, especially after regulatory policy changes in Germany.
Ukrainian Health Minister Viktor Lyashko visited Germany this year to prepare for the legalization of medical marijuana in the country. The first batch of marijuana drugs is expected to be launched early next year.
According to Hannah Hlushchenko, founder of the Ukrainian Cannabis Consulting Group, the first medical cannabis product has been officially registered in Ukraine this month. The product is produced by Curaleaf, a company supervised by the group. I hope Ukrainian patients can soon obtain medical marijuana. Next year, the market may truly open up, and we will wait and see.
Although France and Spain seem to have stalled in adopting broader regulatory frameworks, Denmark has successfully incorporated its medical marijuana pilot program into permanent legislation.
In addition, starting from April 2025, an additional 5000 general practitioners in the Czech Republic will be allowed to prescribe medical marijuana, which is expected to significantly improve healthcare opportunities and drive an increase in the number of patients.
Cannaviga company stated that international companies have also shown interest in the Thai market and are expanding production to meet demand. As Thai companies increasingly seek to export their products to Europe, Sebastian Sonntagbauer, Head of Customer Success at Cannavigia, emphasized the importance of ensuring that Thai products meet strict European standards.
The UK will focus on quality assurance and building patient trust
The cannabis market in the UK continues to grow in 2024, and some believe that the market may have reached a ‘critical crossroads’ in terms of product quality and compliance.
Dalgety Communications Director Matt Clifton warned that contamination issues such as mold are driven to some extent by the demand for non irradiated products and may “weaken patients’ trust in the market”. This shift towards quality assurance is not only about patient care, but also about rebuilding the industry’s reputation and trust.
Although price pressure may attract short-term consumers, this approach is unsustainable and carries the risk of damaging industry reputation. Investing in companies with higher standards, such as those holding GMP certification, will gain increasing market share, as discerning patients will only be sensitive to safety and consistency rather than affordability
After the UK Drug and Health Products Regulatory Authority took action this year to ban the use of strain names on medical Fried Dough Twists products, Clifton also predicted that the regulatory authorities would strengthen the supervision of the industry in the next 12 months and would require importers to conduct higher level testing on products entering the UK.
At the same time, Adam Wendish of the British Cannabis Medical Company stressed that the electronic prescription approved by the British Drug and Health Products Regulatory Authority this year will “significantly reduce the waiting time of patients, simplify the process, and encourage more British people to consider using medical cannabis as a treatment option. Cooperation between medical professionals, patients and medical service providers is the most critical.”
Emerging product trends: cannabis extract, edible products, and personalized medicines
As the market matures, the category of medical cannabis products may gradually expand, including an increase in demand for edible products and extracts, as well as a decrease in demand for dried flowers.
The UK has launched oral tablets and electronic cigarettes, but Fried Dough Twists is still the most commonly used type of prescription products. British cannabis medical company Windish hopes to see more prescribing doctors prescribe cannabis oil and extracts, especially for patients who have not used cannabis, to ensure a “more balanced and effective combination therapy” is provided.
In other European markets, German medical cannabis company Demecan showcased its edible cannabis products on ExpoPharm earlier this year, while in Luxembourg, regulatory authorities are planning to restrict access to dried flowers with high concentrations of THC in order to gradually phase out floral products and replace them with cannabis oil.
In the coming year, we will see marijuana drugs become more personalized. Medical cannabis companies are preparing to launch customized blended extract concentrates and other consumer form options, such as specific cannabis concentrates.
Future research will explore the impact of medical marijuana on specific diagnoses, long-term therapeutic effects, medical cost savings, and differences in administration methods such as extracts and capsules. The researchers also emphasized the advantages of glass containers over plastic containers in the storage of cannabis substances.
Manufacturing process innovation
In 2025, as the variety of products gradually increases, the industry will also require more innovative manufacturing processes.
Rebecca Allen Tapp, product manager at Paralab Green, a supplier of planting equipment, has found that more and more companies are adopting automation and internal solutions that “have greater flexibility and enable producers to simplify processes”.
Rebecca said, “Investing in flexible equipment, such as near-infrared spectrometers for nutrition monitoring and qPCR systems for early pathogen detection, can transfer many previously outsourced businesses to internal companies to help businesses adapt to growing and diverse market demands
Currently, with the emergence of a unique niche market for “small batch, pure handmade cannabis” in the cannabis market, there is an increasing demand for customized series of “precise and consistent small batch production equipment” specifically designed for it.