While there are 41 million people in Canada and 342 million in the United States, the European Union is home to 450 million and has an estimated cannabis use prevalence of 8.4% among residents aged 15-64 (European Drug Report 2025) – representing a massive, untapped frontier. The most populous EU Member State is Germany (84 million, 18.7% of the EU total), followed by France (68 million, 15.1%), Italy (59 million, 13.1%), Spain (49 million, 10.9%) and Poland (36 million, 8%). The population of Great Britain is estimated at nearly 70 million people. The current population of Switzerland is 9 million people and Norway has another 5 million.

In 2018-2019, the European cannabis market experienced greater growth than in the previous six years according to the “European Cannabis Report” released by London-based advisory group Prohibition Partners. Medical cannabis legalisation in six new countries in 2018 drove a 40% month-on-month increase in the number of patients and over €500 million in initial investment.

Since then, the European cannabis industry has greatly evolved. Germany’s MedCanG law, enacted in April 2024, has provided a major boost to the country’s medical cannabis program, reclassifying medical cannabis from a narcotic to a prescription-only medicinal product and facilitating patient access. Significant growth in medical cannabis prescriptions also occurred in Poland, Czech Republic, and the UK.

Progress is also clearly visible on the recreational cannabis front: as of March 2026, four nations – Germany, Malta, Luxembourg, and the Czech Republic – have legalised private possession, use, and home cultivation of adult-use cannabis, effectively ending the era of total prohibition in Europe.

As of March 2026, some form of medical cannabis (or cannabis-based medicine) is legal in 25 countries across the region, with a further 9 having decriminalised the personal use of cannabis, and 4 having legalised cannabis for recreational use.

Medical Cannabis Legalization

Several European countries have adopted policies that allow medical cannabis use and issuing of licenses for cultivation or distribution of medical cannabis. At least six countries have established centres responsible for medical cannabis regulation and licensing, these are: Czech Agency for Medical Cannabis, Danish Medicines Agency, German Federal Institute for Drugs and Medical Devices, Malta Medicine Authority, Netherlands Office of Medical Cannabis, and Portuguese National Health Service.

Prior to deciding on medical cannabis legalization, many countries took the step of first organizing clinical trials to investigate the efficacy of cannabis and cannabinoid medications against diseases. Among them were France, Denmark, Germany, Hungary, Poland, Spain, Switzerland, and the UK.

Netherlands was the first country to legalize medical cannabis – it could be prescribed in flower or oil form since 2003. Other early adopters of medical cannabis were Italy and the Czech Republic, in 2013, followed by Germany, Poland, and Greece in 2017. Belgium, Croatia, Finland, UK, Portugal, and Switzerland are also among the countries that have laws allowing medical cannabis use. More recently, in April 2025, Denmark established a permanent legislative framework for medical cannabis and in July 2025, Slovenia also legalized medical cannabis, permitting its cultivation and distribution by licensed pharmaceutical producers and allowing doctors to prescribe medical cannabis for any condition.

Spain effectively legalized medical cannabis use on October 7, 2025, when the Council of Ministers approved a Royal Decree proposed by the Ministry of Health, which regulates the use of standardized master formulas made from standardized cannabis preparations for medicinal use. Formulations can be prescribed only by specialist physicians in a hospital setting and can only be prepared in authorized hospital pharmacy services.

France launched a medical cannabis trial in 2021. It ended in March 2024, though existing patients can continue to receive treatment until June 31, 2026. Following the pilot program, it has been evaluated that cannabis-based medicines should be made available for use by patients and France is currently in the process of establishing a legal framework for medical cannabis.

In November 2020, the United Nations voted to recognise the medical potential of cannabis by removing it from Category IV of the Single Convention on Narcotic Drugs and the European Court of Justice ruled that CBD is not a narcotic under EU law, allowing for the commencement of application for marketing approval for CBD products on the continent.

Recreational Cannabis Legalization

Malta became the first country to legalize adult-use cannabis in Europe in December 2021. The new law established a dedicated government authority, allowed citizens to grow up to four plants at home and possess up to 7 grams. It also created a legal framework for cannabis social clubs.

Luxembourg decriminalized cannabis in 2001. In June 2025, the country’s parliament passed Bill 8033 which came into force in the following month, allowing adults in Luxembourg to possess recreational cannabis, use cannabis at home and grow up to four cannabis plants per household.

Germany followed in February 2024, legalizing cannabis for recreational use by removing it from the official list of prohibited substances. So far, only Phase One of the legalization has been implemented which legalizes cannabis cultivation clubs, home cultivation and personal possession of cannabis for recreational purposes. Phase Two, which concerns the introduction of a regulated commercial cannabis market, is still in the planning stages. Due to its size and political importance, Germany’s legalization is expected to serve as an example and encourage other countries in the EU to also progress towards legalizing recreational cannabis.

Indeed, in May 2025, the Czech Republic became the fourth country in Europe to approve a national adult-use cannabis legalization measure. Under the new law, adults aged 21 and older can cultivate up to three plants in their private residence and possess up to 100 grams of dried cannabis flower at home or up to 25 grams in public. The new law is set to take effect on January 1, 2026.

Switzerland and the Netherlands meanwhile, have launched adult-use cannabis pilot programs in 2022 and 2024, respectively. Switzerland is advancing a draft of a new law that would legalise the possession, use, and home cultivation of adult-use cannabis as well as establish a regulated, commercial market.

Recreational cannabis is currently decriminalized in Spain, Portugal, Italy, Belgium, Austria, Switzerland, Croatia, Estonia and Slovenia. In Spain, several regions have also allowed for cannabis social clubs to be established and have tried to regulate them, but their regulations were later declared unconstitutional, leaving no specific law to regulate the clubs. However, this did not stop them from growing in popularity and there are currently hundreds of active cannabis social clubs in the country

European Cannabis Market Statistics & Forecast

Germany has emerged as Europe’s largest legal cannabis market following the passage of its Cannabis Act in March 2024, which streamlined medical access and triggered a sharp rise in demand. Cannabis imports surged – more than quadrupling by the end of 2024 and continuing into 2025, with Q1 imports up over 350% year-over-year. Industry analysts project Germany’s medical cannabis sales (valued at around €420 million in 2024) could exceed €1 billion by 2027. The anticipated launch of a regulated recreational market (Phase Two) is expected to drive further growth.

The UK is Europe’s second-largest market, more than doubling its medical cannabis flower imports in 2024 compared to 2023. With patient numbers forecast to grow from roughly 63,000 in 2024 to over 140,000 by 2028, sales could nearly double over the period of four years to reach approximately €535 million.

Other markets are also gaining momentum. Poland’s medical cannabis sales in 2024 were double their value in 2023, while the Czech Republic has seen annual prescription growth of about 32% in recent years. The Netherlands and Switzerland are advancing pilot programs for regulated recreational cannabis, with Switzerland currently evaluating a preliminary draft of a new law that would legalize adult-use cannabis.

Spain and Portugal lead European cannabis production, both having dramatically scaled output since 2021. Other countries such as Denmark, the Netherlands, and North Macedonia are also strengthening their roles as suppliers in the medical cannabis market.

Reports prepared by the London-based advisory group Prohibition Partners valued European legal cannabis sales at €516 million in 2023, and by 2025, sales had nearly tripled to €1.5 billion, primarily driven by a 110% surge in medical cannabis sales in Germany and steady expansion in other major markets such as the UK and Czech Republic. Total legal cannabis sales in Europe are forecast to grow at a compound annual growth rate (CAGR) of 50% to reach €2.5 billion by 2027.

Meanwhile, New Frontier Data estimates the total value of cannabis demand in Europe at $42.9 billion. This figure serves as the upper bound for the region’s market potential, contingent on a broad shift toward medical and adult-use legalization among its most populous nations.

Source: cannabusinessplans.eu

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