The future of cannabis is in Europe

While the cannabis industry in the United States appears increasingly entangled in a web of contradictory regulations and a market nearing saturation, the Old Continent is emerging as a new strategic horizon for American companies seeking a relaunch. In the U.S., the fragmentation between state laws and the lack of federal alignment has created an uncertain environment that, combined with growing domestic competition and market stagnation, is pushing many companies in the sector to look overseas. Europe thus presents itself as a land of commercial opportunities, thanks to a more dynamic and potentially more stable regulatory context—especially in light of an increasingly protectionist American policy and the prospect of a potential return to prohibitionist policies under a second Trump administration. In such a scenario, while restrictions and setbacks are debated across the Atlantic, the foundations for a fully expanding legalized market are being laid in the heart of Europe—particularly in Berlin. More than any other EU member state, Germany has seized the moment to position itself as the central hub of the European cannabis industry. According to estimates from Farmonaut, Germany’s market expansion in 2025 could generate over 27,000 new jobs. With a market value estimated at $32.8 million in 2023 and an expected annual growth rate of 14.9% until 2030, the sector is shaping up to be one of the most promising in the German economy. Particularly notable is the growth of the medical field, which has seen a surprising acceleration: according to Artemis Growth Partners, as of May 2025, there were approximately 900,000 patients treated with medical cannabis in Germany—a fourfold increase from the previous year.

This development has not gone unnoticed by international investors, particularly those from the U.S. Will Muecke, co-founder of Artemis Growth Partners, told Forbes that he had invested over $200 million in the U.S. cannabis market since 2018 but has now shifted his focus to Europe. Since 2022 alone, he has allocated $25 million to the European market and plans to increase his commitment to $50 million in the coming years. This capital shift is already visible in ongoing operations. In April 2024, Flora Growth Corp, a Canadian company active in the sector, announced the acquisition of the German company TruHC Pharma, which holds a medical cannabis license—a concrete signal of a new phase of international consolidation. Europe’s momentum is also confirmed by recent data. According to ION Analytics, medical cannabis sales in 2024 reached €450 million, with further expansion expected for the current year. Germany thus confirms its role as the leader of a movement that could also affect other member states, contributing to a gradual harmonization of regulations and opening new scenarios for the recreational market.

However, there is no shortage of critical voices: Kristoffer Inton, a Morningstar analyst specializing in cannabis, warned that the massive influx of North American companies might not prove sustainable in the long term. If everyone is looking for salvation in the same place, he told Forbes, there might not be room for all. Despite these cautions, there is no lack of signs of vitality. The launch of the first European Exchange Traded Fund (ETF) dedicated to medical cannabis, as reported by International CBC, shows that the financial world is also beginning to recognize the maturity of the market. According to Statista, the European cannabis market is expected to grow by 2.49% annually between 2024 and 2029, reaching a volume of approximately $7.25 billion. The European cannabis industry is therefore just at the beginning—characterized by concrete regulatory progress, thanks to the rapid evolution of the medical market, and increasingly strong signals in the recreational sector as well. While Trump isolates himself across the ocean, the European continent is beginning to attract the capital, expertise, and ambition that have long been the strength of the United States. The 21st-century green rush has thus begun—but this time, unlike the American gold rush of the 19th century, the path to fortune is reversed.