Marijuana Business Magazine - May-June 2018

G ermany is on track to become one of the world’s largest medical marijuana markets. Patient numbers are soaring, medical cannabis imports are rising, and the country is preparing for domestic cultivation. Some executives expect recreational legalization to happen “in the foreseeable future.” In a country where residents are required to have health insurance, some plans cover medical cannabis, making access easier for the country’s 70 million eligible residents. Early data from three of the country’s largest insurance companies show medical marijuana demand is surging. Germany has what it takes to support a major domestic cultivation industry. Those efforts suffered a setback in March, however, when a German court scrapped the licensing process. Applicants hoped the first licenses would be awarded in April 2018. Now, the entire process may not resume until late this year, and cultivation likely won’t begin until 2019 or 2020. Here’s what you need to know: • In the short term, opportunities in cultivation, manufacturing, retail and ancil- lary businesses are slim.That is likely to change in the medium term for every sector, except possibly retail. • Opportunities exist for cultivators to export product to Germany. It will likely take the initial winners of domestic cultivation licenses a year or more to build out their facilities and begin growing. In the interim, the country will depend on imports, which have been dominated by Canadian producers. • Many in the industry believe Ger- many’s current reliance on cannabis imports will end when the country issues domestic grow licenses. So, the time to get a foothold is now. • Product manufacturers will be limited in what they can do until domestic production ramps up. GERMANY Industry: Medical Marijuana Germany A GOING GL BAL 64 • Marijuana Business Magazine • May-June 2018