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🚨What's Next For Germany?
Anthony Varrell & Shadd Dales
February 26, 2025
GM Everyone,
April 1, 2024, was a big day for the German cannabis industry, as it marked the official legalization of cannabis in the country. Fast forward 329 days, and the conservative Christian Democratic Union (CDU) has now won the election. Are you nervous that Germany’s cannabis program might be altered now? Not so fast.
A little more than a 7 minute read.
💸 The Tape
This past Sunday On February 23, 2025, Germany held its federal election, resulting in a victory for the conservative Christian Democratic Union (CDU) led by Friedrich Merz. The CDU, along with its Bavarian sister party, the Christian Social Union (CSU), secured 28.5% of the vote. Based on the results Friedrich Merz is poised to become the next Chancellor of Germany .
The CDU's representatives, including Merz, have expressed opposition to cannabis legalization. They argue that the partial legalization enacted in April 2024 has not effectively curbed illicit sales and advocate for reinstating prohibition . This stance contrasts sharply with the previous coalition government, which supported further legalization efforts.
The election results have significant implications for Germany's cannabis industry, as the new government may roll back the current laws, leading to increased regulatory and political uncertainties for businesses operating in the market
So now what? Not so fast. Since April 1, 2024, Germany’s medical cannabis market has experienced significant growth.
Medical cannabis imports grew by over 70% in the third quarter of 2024 compared to the previous period. As a result, health care costs for the country have come down.
Also, the number of medical cannabis patients has increased significantly, with around 75,000+ new patients added since the start of April 2024. The surge is due to the removal of cannabis from the list of narcotics, making it easier for patients to access medical cannabis. Some estimates suggest that the patient count could reach 840,000 by the end of 2025, which would represent 1% of Germany’s 84m population.
And finally, the most important factor, unlike in America, Germany’s regulated market offers lower prices than the illicit market. As a result, more Germans are shifting towards the regulated market, ensuring transparency, reducing the influence of illegal activities, and boosting the economy.
In conclusion, it’s too early to overreact and jump to conclusions concerning the elections results from February 23. The data being produced will have a significant impact on what the CSU decides moving forward for the German cannabis market.
More information on this today at 4pm EST on our livestream with Sanity Group CEO, Finn Hansel.
📈 Dog Walkers.
Wisconsin GOP Lawmaker Eyes Medical Cannabis
What’s Going On Here: The debate over medical marijuana legalization in Wisconsin is persistent, with top Republican leaders hopeful for resolution this session. Although there’s skepticism about broader adult use in 2025, GOP leaders suggest medical reform is possible.
Assembly Majority Leader Rep. Tyler August (R) has acknowledged the presence of marijuana in Wisconsin, urging a solution.
Why You Should Care: Wisconsin would be come the 40th state in America to legalize medical cannabis, equating to 80% of states in the country having a medical cannabis program.
Ohio Prices Drop Rapidly
What’s Going On Here: Ohio’s recreational marijuana market is experiencing price contractions just five months after sales began.
In 2024, adult-use sales reached $242.2 million, meeting industry expectations. Despite this growth, the Ohio Division of Cannabis Control (DCC) reported a decline in prices across almost all categories.
The average price per gram fell 27.6%, from $9.40 at launch to $6.80 in January. Manufactured product prices dipped 9.6%, with edibles down 17.1% and vape oils/solids down 11%. Additionally, the product mix has shifted, with a decrease in sales of edibles, ointments, and tinctures, and an increase in vape oils/solids.
Why You Should Care: With prices dropping just five months after sales began, this will impact the bottom line of many major MSO’s, given their footprint in the state. Companies that could be affected include Curaleaf (OTC: CURLF), Green Thumb Industries (OTC: GTBIF), Cresco Labs (OTC: CRLBF), and Trulieve (OTC: TCNNF). Ultimately this would lead to increased competition and pressure on profit margins.
📺 YouTube
Coming Up @ 4p EST:
What to Expect Next in Germany
What we will cover:
✅ Finn Hänsel, CEO of Germany based Sanity Group, will join us to provide feedback on what cannabis investors should anticipate on what’s to come concerning the country’s cannabis program. His understanding of the German market will provide important insights into potential changes in the current cannabis landscape based on the recent election results.
Who is he? Hänsel, CEO of Sanity Group GmbH, co-founded the company in Berlin in 2018. The organization is a leading German health and life sciences company focused on utilizing cannabinoids to enhance quality of life.
Sanity Group has attracted investments, including €20.1 million in a Series A round in 2020, $37.6 million in a Series B round in 2022, and €14 million in 2024 from Organigram Holdings (NASDAQ: OGI). The company collaborates with over 2,000 pharmacies and 5,000 physicians across Germany and holds a 10% share of the German medical cannabis market.