Europe’s medical cannabis industry is evolving rapidly into a regulated pharmaceutical market, transitioning from a network of national pilot programs. By 2025, the market was valued at USD 3,060.0 million and is projected to grow to USD 13,161.29 million by 2034, at a compound annual growth rate (CAGR) of 17.60% from 2026 to 2034, according to the IMARC Group.
The transformation was significantly influenced by Germany’s Medical Cannabis Act (MedCanG), which took effect on April 1, 2024. This legislation moved medical cannabis from the Narcotics Act (BtMG) to a regular prescription framework, allowing for ordinary prescription issuance and pharmacy dispensing. This regulatory change marked a pivotal moment in European cannabis policy.
Demand for medical cannabis in Germany has surged since the introduction of the law. The Federal Institute for Drugs and Medical Devices (BfArM) reported that medical cannabis imports reached 201.1 tonnes in 2025, a substantial increase from approximately 72.9 tonnes in 2024. The BfArM also raised the national maximum quantity for medical and scientific purposes to around 192.5 tonnes in October 2025. In the UK, official data revealed that imports of dried cannabis flower for medicinal use increased to 30,062 kilograms in 2025, up from 14,992 kilograms in the previous year.
Investment in supply is following this rising demand. Cultivation is being established in countries like Portugal, Denmark, Spain, and North Macedonia, which are now producing EU-GMP certified cannabis. Additionally, German domestic production is set to grow under BfArM tenders, as investors acquire pharmacies, clinics, and distribution networks, primarily driven by North American entities.
Among various product segments, Indica strains are the most prevalent, while cannabidiol (CBD) products make up over half of the market share. Cancer-related treatments account for the largest therapeutic application, with oral solutions and capsules representing 55.2% of the administration methods, highlighting the pharmaceutical orientation of the market.
Germany and the UK emerge as the primary markets, while Portugal and Denmark serve as significant cultivation bases. Other countries such as France, Italy, Spain, and Poland are also developing their demand tiers, setting the stage for further industry growth.
Looking forward, the European market is expected to see pharmaceuticalization as a key theme, with private telemedicine clinics and EU-GMP processing determining value capture as prices for raw cannabis decline. Key players in the industry are focusing on the need for EU-GMP certification to secure market access, and significant developments, including acquisitions and partnerships from major companies, signal a rapidly changing landscape.
The industry is positioned for significant growth, and as competition intensifies, operational capabilities that ensure compliance, distribution, and access will be essential for companies looking to thrive. The increasing demand and investment in regulated medical cannabis is expected to provide substantial opportunities for various stakeholders through 2034.
