The cannabis and CBD market in the European Union has been growing slower than it has in the United States and Canada, but analysts expect the European CBD market to grow exponentially over the next four years.
According to a recent study by analytics market and research firm Brightfield Group, Europe’s CBD market will grow an estimated 400% through 2023, with a number of Canadian cannabis companies poised to reap the benefits. The European CBD market is expected to be worth $416 million by the end of this year and is projected to reach $1.7 billion by 2023.
Canadian Companies with a Stake in the EU CBD Market
A number of Canadian cannabis companies have already spent millions acquiring licenses to operate and build cannabis cultivation facilities in European countries to tap into this growing market. Medical cannabis producers Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB) and Tilray Inc (NASDAQ:TLRY) have established a local facility to produce medical cannabis and derivative products in Portugal, with Tilray already completing its first harvest.
OrganiGram Holdings Inc. (TSXV:OGI) (OTCQX:OGRMF) gained European access when it signed a $5 million deal with European hemp and CBD producer Eviana Health Corporation (CSE:EHC).
Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) has also cemented itself in the European cannabis and CBD market through its wholly-owned subsidiary Spectrum Cannabis. Canopy currently has medical cannabis facilities in Denmark, Poland, and the United Kingdom, with plans to build an additional facility in either Italy, Greece, or Spain.
European Cannabis and CBD Laws Loosening
The law surrounding CBD and medical marijuana have begun to loosen up, with the World Health Organization recommending CBD no longer be subject to international control and the European Parliament voted on a resolution to help advance medical cannabis in the countries that form the European Union.
Although these are all positives that point to growing pro-legalization within the European Union and offers an opportunity for developed brands to enter and expand through the European market, Brightfield Managing Director Bethany Gomez says cannabis investors should approach EU markets with caution.
What do you think of the projected growth of the European cannabis and CBD market?
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