Oct 31, 2022
By passing legal recreational cannabis legislation, Germany could make history for the European Union (EU). We expect the development to create a domino type effect which will result in other members of the EU passing similar legislation.
Germany is the largest economy in the EU (by gross domestic product or GDP) and we are bullish on the long-term potential of its cannabis market. When compared to North America’s cannabis industry, Germany is much less saturated and we consider this to be significant.
With a population that is greater than 83 million, Germany could be one of the largest cannabis markets in the world. The population is more than twice the size of Canada and we consider this to be significant. We expect the size of the market and the location of the country to be play an important role in the growth of the industry.
Going forward, we expect to see increased interest in Germany’s cannabis industry and will monitor how the market evolves. By 2030, we believe Germany will be one of the largest cannabis markets in the globe and are working to identify operators that will benefit from the trend.
During the last two years, several large-scale Canadian Licensed Producers (LPs) have acquired cannabis production and processing facilities in countries that are part of the EU. Going forward, we should see increased interest in countries like Germany and expect the EU to become a destination for leading cannabis operators.
Although Canada is in the later innings of the cannabis growth cycle, the EU is in the early stages of a period of hyper-growth. Going forward, we expect the cannabis sector to benefit from legalization trends across the EU and want our readers to be aware of this.
Tilray Brands Inc. (Nasdaq: TLRY) (TSX: TLRY) has highly focused on the cannabis opportunity in the EU and has acquired several assets to enhance its leverage to it. Although Aurora Cannabis Inc. (Nasdaq: ACB) (TSX: ACB) has also been capitalizing on the EU, we believe Tilray Brands has more attractive growth prospects.
https://technical420.com/cannabis-article/all-eyes-are-on-germanys-recreational-cannabis-industry/#
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