What is the state of the German cannabis industry one year after legalization?

The clock is ticking and this week Germany's landmark Cannabis Reform Act (CanG) celebrates its first birthday.


Since April 1, 2024, Germany has invested hundreds of millions of euros in the medical marijuana sector, hundreds of thousands of criminal prosecutions have been averted, and for the first time, millions of German citizens are enjoying the right to consume cannabis legally and free of charge.


However, the reform remains controversial and the issue highly politicized. As discussions continue between the anti-marijuana Christian Democratic Union/Christian Social Union and the pro-marijuana Social Democrats to form a coalition government, the future of Germany's cannabis industry remains in doubt.

Whether or not the new coalition will attempt to repeal the Cannabis Reform Act (CanG), the law has had a lasting impact on Germany's economy and society, and it will be difficult to put the genie back in the bottle a year from now.

The Impact of the Marijuana Law in Germany

The Cannabis Control Act (CanG) went into effect on April 1, 2024, allowing adults to legally possess, consume and grow up to three cannabis plants in their homes. Germany then implemented further regulations on July 1, 2024, allowing for the formation of non-profit cultivation associations that allow members to grow and distribute cannabis for adult use.


While Germany's nationwide legalization of cannabis for adult use is not the first such policy change implemented in Europe, it is undoubtedly one of the most significant legalization laws in Europe.


One of the most impactful aspects of the law, especially from an economic standpoint, was the removal of cannabis from the list of narcotic drugs, a change that has led to a booming medical marijuana industry in Germany.


According to the German Cannabis Industry Association (BvCW), the law has contributed to the following three areas of prosperity.

Medical marijuana

The German medical cannabis program has proven to be the biggest winner of the new CanG law. Investments in the German cannabis industry are already estimated to reach €300 million by 2024, of which approximately €240 million will be used to boost the booming medical market. In addition, the association has stated that the German cannabis industry is expected to generate revenues of approximately €1 billion by 2025.


While this will obviously help in the conduct of cannabis business, the Federal Association of Medicinal Cannabinoid Enterprises (BPC) argues that it will also benefit the care of medical marijuana patients in the country.


"The significant investment in the medical cannabis industry underlines the growing importance of the sector for sustainable healthcare in Germany. This strong development makes an important contribution to ensuring that patients have access to high-quality, guaranteed cannabinoid-based pharmaceutical care," said Antonia Menzel, President of the Association of Cannabinoid Companies (BPC).


The latest official medical marijuana import data reflects this rapidly growing market, with the law benefiting not only domestic cannabis clinics, but also international suppliers.

Germany's quarterly imports of dried cannabis flowers from abroad for medical and medical-scientific purposes will total more than 70 tons in 2024, up from 32 tons a year ago, according to the latest data from the German Federal Institute for Drugs and Medical Devices (BfArM).


In the last quarter of 2024, Germany imported 31,691 kilograms of dried cannabis flower, up 53 percent from 20,654 kilograms in the previous quarter.


Compared to the fourth quarter of 2023, prior to the implementation of the April 2024 Cannabis Act, cannabis imports increased by a staggering 272 percent.


This is further supported by cannabis companies' own independent data. Earlier this year, Bloomwell Group, one of Germany's largest medical marijuana operators, reported a 1,000 percent increase in the number of prescriptions received by cannabis dispensaries between March and December last year since the April 1 law change.

Association of Home Growers and Cultivators

As of March 2025, more than 500 applications have been submitted by cannabis associations across Germany, but only about 190 have been licensed, according to the latest data from the forthcoming European Cannabis Report: 10th edition by industry intelligence agency Prohibition Partners. Cultivation associations accept adults as members, and through their membership they can legally purchase cannabis from the association.


The states that issue the most licenses are North Rhine-Westphalia, Lower Saxony and Rhineland-Palatinate, which together account for about 60 percent of all licenses issued in Germany.


In addition, the German Cannabis Industry Association (BvCW) said there has been a "boom" in home cultivation, driving sales of seeds, fertilizers, lights and cultivation equipment such as grow tents.


"These products sold out in a matter of weeks or months. In a representative survey, 11 percent of respondents said they wanted to grow marijuana at home. The new law has created jobs and stimulated the economy.

Successful reduction in crime

One of the key arguments made by the Red Light Coalition in promoting the CanG Act was that it would reduce crime, curb the black market, and free up judicial and law enforcement time to focus on more serious crimes.


One of the great successes of the new marijuana law is that it reduces the impact on the country's criminal justice system. Legalization allows German law enforcement to focus on fighting real crime and frees up the country's law enforcement resources to deal with more important crimes.


According to Der Spiegel, approximately 100,000 prosecutions have been averted in the months since partial legalization. In Bavaria, the region most vocal in its criticism of marijuana, "the number of cannabis-related crimes fell 56 percent to 15,270 last year," the publication noted. In North Rhine-Westphalia, the number of marijuana-related crimes in the state fell by more than half (53 percent) in 2024 compared to the previous year."


According to other police and crime statistics obtained by Der Spiegel, drug crimes in Germany fell by about a third in 2024, and the country's overall crime rate dropped by 1.7 percent. There is simply no evidence that the law has led to a "surge in drug crime" or other disasters, as has been rumored in CDU/CSU circles.

An earlier analysis by the Institute for Competitive Economics at the Heinrich Heine University in Düsseldorf found that legalizing adult use could save Germany's police and judiciary up to 1.3 billion euros a year.
However, the Ministry of the Interior has refuted this assessment, stating that "there is no evidence that partial legalization has in any way suppressed the illegal market or reduced demand".
This seems to be based on the fact that there has been a 33 percent reduction in drug crime, which is mainly "consumption crime," as a result of the now legalized use of drugs. Last year, about 1,000 violations of the new law were recorded, involving trafficking, smuggling, and possession of illegal amounts of drugs.


German law enforcement authorities seem to agree that the law needs to be reviewed urgently, with Alexander Potts, vice president of the German Federal Police Union, calling on the future federal government to amend the law quickly.


Until the law is improved, the black market cannot be curbed and the protection of minors and road safety cannot be guaranteed," Potts said. Organized crime is using the time to exploit obvious legal loopholes for their own ends. The partial legalization of cannabis has not significantly reduced police workload. At the same time, significant investment is needed in state-of-the-art enforcement and detection equipment.

How does the public feel about this?

According to a recent survey released by global seed company Royal Queen Seeds, 51% of German parents believe that home-grown cannabis is safer than cannabis bought on the street, while the global figure rises to 57% in this regard.


Less than half (40%) of German adults surveyed support the reform, with the over-65s and pensioners remaining the most sceptical, while those under 40 are more likely to support the reform. Nearly 50% of the population believe that the new regulations will increase public awareness of cannabis.


Meanwhile, 41% of German cannabis consumers plan to grow their own in 2025, 77% of home growers see value in personal cultivation, and 75% believe it is safer to consume cannabis they have grown themselves.


A separate representative survey of more than 2,000 people conducted by YouGov found that 45 percent of Germans are willing to discuss medical marijuana with their doctors. While only 7 percent have discussed the topic with a healthcare provider, another 38 percent said they would do so if medically necessary.


In most cases, it is the patient, not the doctor, who initiates the conversation. Among adults aged 45-54, only 2% said their doctor had recommended marijuana therapy. Among those 55 and older, that number drops to just 1.2 percent.

In contrast, younger age groups reported slightly more physician-led discussions: 5.8% of 25-34 year olds and 5.3% of 35-44 year olds reported that their doctor brought up the idea.

Despite growing acceptance, the stigma of marijuana remains a barrier. Nearly 6% of respondents said that even if they were personally open to marijuana, they would avoid discussing it with their doctor for fear of being judged.


However, millennials appear to be more proactive, with 49 percent of young people under the age of 34 saying they would immediately consult their primary care physician about marijuana as a medical option if needed.


Overall, after one year, the legalization of cannabis in Germany is proving to be a success in many ways. To be fair, the full implementation of the Cannabis Act has faced hurdles in some areas, including a lack of regional pilot projects for adult-use cannabis retail. However, the Federal Agency for Agriculture and Food has reportedly begun accepting applications for pilot projects, so the long-awaited adult-use cannabis pilot program is about to begin.