Germany, The Perfect Market for USA Cannabis Business Expansion
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With the German cannabis market rapidly developing and unfurling to multinational parties, American cultivators are presented with a fantastic prospect of entering a potentially lucrative market and gaining access to the wider EU.
With the German cannabis market rapidly developing and unfurling to multinational parties, American cultivators are presented with a fantastic prospect of entering a potentially lucrative market and gaining access to the wider EU.
Whilst it is still not possible for American growers to export cannabis straight to the EU, now is the perfect time to get involved in the German market and get ahead of the unavoidable industry surge.
The German cannabis market is the largest in Europe.
Worth over one billion euros ($1.03 billion) annually, the market is predicted to grow enormously after a restricted adult-use cannabis market is implemented and the medical cannabis program is extended.
With a population of over 83 million, Germany has a large patient base for medicinal cannabis. This provides growers with a dual opportunity to grow cannabis in a recreational partnership and also supply the medical market. Initially, Germany was imagined as a recreational market including the sale of cannabis via retail stores. However, the EU opposed this with the arrangements currently not allowed under EU law.
Germany is moving forward in the testing of sales via a "research umbrella" and some schemes have already been approved. German cultivation is permitted in associations alongside the medicinal market. The members per cultivation association is limited to 500, on-site consumption is restricted and membership is limited to German residents only.
The fledgling German cannabis market is in a great position for affiliation: regional vendors, dispensaries and cultivation societies are busily seeking strategic alliances with proficient multinational cultivators to help them meet increasing demand.
American cannabis enterprises are therefore in a great position to deliver not only the essential knowledge required to cultivate and market high-quality cannabis but also their advice and best practices in the latest growing and brand expansion strategies. Strict allocations for German cannabis growers formerly led to an ongoing increase in cannabis imports from Germany.
These limitations have however now been abolished, likely opening up more amazing possibilities for American businesses in Germany as local producers now start to scale up production and boost operations.
American companies now have the chance to use their incomparable quality and cultural acclaim. For German cannabis users and regulators, quality, protection and sustainability are of absolute paramount importance.
California's stature as a premium producer of cannabis products, thanks to ideal cultivating requirements, advanced cultivation strategies and historic tradition can align itself well with the incoming German standards.
Taking advantage of California's infamous cannabis culture, agriculturists who build relationships with German companies will be able to steer towards premium products and higher prices in the new quality-driven German market. In terms of quality standards, American cultivators are accustomed to steering some of the most controlled cannabis markets worldwide.
The companies that have endured have exhibited their strength in a very challenging market. This experience will equip them with a competitive edge in Germany, where severe obedience to Good Manufacturing Practices and associated EU standards is compulsory.
Numerous cannabis businesses from outside the EU already have methods of transitioning cannabis from Good Agricultural and Collection Practices (GACP), which is the US standard, to the EU equivalent (GMP) via specialised post-harvest procedures. This facilitates adherence and guarantees that high-quality end products will fulfil German standards.
Germany is the gateway to the EU.
Germany is not only Europe’s largest cannabis market but also the most logical starting pinpoint. If US growers can attain profitability in Germany’s cannabis market, then they will be able to reproduce that triumph across the rest of Europe.
Germany’s robust economy and elevated consumer buying power make it the ideal testing environment for scaling operations across the European continent and the ideal site for an operational HQ when other EU countries inevitably take steps to regulate cannabis in their markets.
Whilst things are beginning to move forward, the European market is still underdeveloped in comparison to North America.
U.S. cultivators who penetrate the European market now can cement themselves in a powerful position before things getmore competitive.
They will be better positioned to find connections between their brands and the end consumers before rivals. They will also be able to set market preferences and establish criteria for quality and sustainability that others will seek to meet.
Germany’s newly maturing cannabis industry portrays a lucrative prospect for American cultivators to extend their global footmark. With an increased need for quality products, favourable regulatory parallels and options for partnership, U.S. cannabis companies are more than well-positioned to prosper in Germany, Europe’s most promising cannabis market.
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