Licensed Sales Struggle Against Illicit Market – October 2024 Brief

Welcome to October’s cannabis brief.

This month we discuss how global jurisdictions struggle to curb the illicit market, the failure of Florida’s push for legalisation, and regulatory developments in Germany amid political turmoil.

As always, we hope you gain valuable insights from our curated collection of global news and industry trends. Key figures from the international markets include:

      • In Florida 56% voted for legalisation falling short of required 60% supermajority.
      • Licensed canopy in California dropped below 1,250 acres for the first time since 2019.
      • In the UK only 1,104 patients receive approved cannabis medicines by the NHS
      • In Ontario, 1,721 licensed retailers face competition from unlicensed stores.
      • Israel commissioner officially proposes up to 175% tariff of Canadian cannabis

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Do not hesitate to reach us at info@cannamonitor.com with any suggestions.

Table of Contents

New Report:

UK Data: Prescriptions, Products, Brands

UK Medical Cannabis Report: Prescription Data (2022-2023)

Discover key insights into the UK’s cannabis market with our latest report. Track prescription growth, identify top-selling products, and stay ahead of emerging trends in patient preferences. Dive into detailed product performance data, from flower to oils, capsules and vapes, and uncover opportunities for innovation. Plus, explore the competitive landscape, monitor leading brands with information on their products and market share, and spot new entrants making waves in the industry.
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Regulation

Florida cannabis legalisation fails despite significant MSO campaign funding, while DEA rescheduling hearing is delayed. German cities move ahead with adult-use pilot projects despite government collapse. The Netherlands allows licensed holders to trade bypassing government intermediaries. Brazilian pharma companies push to restrict named-patient CBD imports. Israel plans tariffs up to 175% on Canadian cannabis. Poland now requires in-person visits for prescriptions. The EU investigates Italy’s hemp crackdown. Thailand prepares new regulations.

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Market

Legal market grapples with unlicensed sales in Germany, the US, the UK and other global jurisdictions. In Germany, the first cannabis clubs begin harvesting and distributing products to their members. Canada sees a new wave of M&A as industry consolidation continues. Australian operators report mixed results, citing concerns over Canadian imports. In the UK, lack of NHS support remains a significant issue, six years after medical legalisation. Major pharma companies dominate the Brazilian market, despite patient associations securing judicial victories. New medical cannabis product launched in Poland, Portugal, Denmark and Czechia.

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Science

Studies in Canada, Germany, and the Netherlands reveal contamination in street cannabis, underscoring the necessity for safe, legal, and quality-controlled products.

 Infographic of the Month:

THC Inflation in the UK

🇺🇸 United States: Florida Legalisation Fails, DEA Hearing Delayed, and State-Level Changes Reshape Industry

🏛️ Florida‘s ballot measure to legalise recreational cannabis fails to meet the required 60% supermajority for approval, despite 57% vote in favour and support by President Elect Trump.

 

💼 U.S. cannabis industry expected to require $65.6B to $130.7B in growth capital over the next decade for business expansion as retail sales are projected to show strong growth.

 

🔬 Study explores cannabis use’s impact on physical activity in the US, finding that legal medical cannabis promotes greater physical activity in chronic patients, and even more so on non patients.

 
🇩🇪 Germany: Pilot Projects in Hamburg and Frankfurt Announced, but Coalition Instability and Shifting Public Opinion Raise Questions about Future Rules

🏛 Frankfurt and Hanover plan model projects for regulated adult-use cannabis sales; awaiting federal approval for pilot projects. Study in Frankfurt aims to assess health impacts and consumption behaviour, while Hanover’s project targets 4,000 adults.

 

💼 The first cannabis harvest of a cultivation club has happened in Ganderkesee: 200 plants distributed to 500 club members.

 

🔬 A Sanity Group study reveals 80% of black market cannabis samples contaminated with harmful substances like pesticides, feces, and viruses; emphasising the need for safe cannabis products.

  • Albanian delegation visited Merseburg University to explore new research group on potential applications of hemp-based materials.
 
🇨🇦 Canada: Cannabis Market Battles Illicit Competition Amid Industry Consolidation and M&A Wave

🏛️ Excessive taxation and fees hinder small cannabis businesses. Analysis suggests that cultivators in British Columbia receive less than 20% of consumer spending, as BC Cannabis Alliance campaigns to reduce the 15% proprietary fee for direct delivery to improve economic viability.

 

💼 Ontario cannabis sales exceeded C$1 billion in H1 2024, marking significant increases in volume and value compared to 2023, despite recent slowdown, as license retailers reach 1,721.

 

🔬 Aurora Cannabis collaborates with UBC on a Genome BC-funded project to validate cannabis genetics linked to fuity aromas, enhancing its intellectual property portfolio.

 
🇦🇺 Australia: Medicinal Cannabis Market in Flux due to Regulatory Scrutiny and Domestic Growth Challenges

🏛️ As of September 2024, Australia has 90 medicinal cannabis licence holders, including 27 cultivation and production permits, and 12 manufacturing permits.

 

💼 Domestic growers struggle against the influx of Canadian cannabis, affecting prices and competition, claiming strict regulations compared to Canadian imports bypassing quality checks.

 

🔬 InhaleRx secures A$38.5m funding from Clendon Biotech to advance inhaled therapies for cancer pain and panic disorder treatments, with synthetic CBD and dronabinol.

 
🇬🇧 United Kingdom: After Six Years of Medical Access, Lack of NHS Coverage Continues to Cause Frustration

🏛️ Legalising cannabis could generate £5 billion for the NHS through taxation and savings on medical prescriptions for chronic pain, study finds, as illicit market is “flooded” by imports from legal countries as seizures hit 47 tonnes in 2023.

  • Advisory Council on the Misuse of Drugs recommends increasing THC limit in hemp from 0.2% to 0.3% and lowering licensing fees—underwhelmed stakeholders demand 1% THC.
  • UK cannabis trials are moving to the US due to regulatory complexities, prompting calls for licensing reforms from industry leaders.
  • Cannabis reform group CLEAR publishes cannabis regulation plan, highlighting potential economic benefits and reduced underage use from legalisation efforts.
  • UK Cannabis Social Clubs promote non-profit clubs to foster community support and safe access to cannabis for consumers as an alternative to prohibition.
 

💼 NHS fails to prescribe cannabis flower; only 27% of trusts prescribed licensed cannabis medicines, with only 1,104 patients for approved products in 2023. Families accuse NHS of failing patients, contrasting with a growing private market for treatments, as mother in Kent spends £24k annually for daughter’s cannabis oil without NHS coverage.

 

🔬 Artelo Biosciences develops a cannabis-based drug to stimulate weight gain in cancer patients, facing regulatory delays from the Home Office in the UK.

 
🇳🇱 Netherlands: Ease of Medical Cannabis Trade Restrictions, Challenges in Illicit Market and Drug Policy

🏛️ New policy of the Ministry of Health eases previous restrictions on medical cannabis trade: import, export, sale and delivery of license holders will be allowed without requiring the Medicinal Cannabis Agency to take possession of the product, effectively allowing trade to be conducted by actors than the government under a Quality Assurance Agreement.

  • Justice Ministry Research report on international cannabis policy developments; includes case studies, insights, and 25 recommendations for Dutch cannabis policy adjustments.
    • Coffee shop stakeholders claim that current cannabis policy limits innovation, pushing sales to illegal markets; new flexible legislation needed for safe, regulated coffee shop products.
    • Lab analysis finds that illegal cannabis vapes are easily accessible to youth, containing harmful substances and banned pesticides, posing serious health risks.
    • VOC launches cannabis and traffic campaign to raise awareness and advocate for fair testing methods for cannabis consumers in the Netherlands.
    • After coffee shops were closed in Roermond, seven street traders and four buyers were arrested in spike of illicit trade; narcotics and money seized by police.
  • Decline in Dutch cannabis cultivation, with police seizing of plantations reduced from 3,634 in 2019 to 1,230 in 2023. However, foreign cannabis, particularly from Canada, is on the rise, as the Netherlands remains a crucial hub in the global drug market.
 

💼 New figures on drug use in the Netherlands finds cannabis remains the most used drug with 7.6% of the adult population consuming, at a stable level since 2015.

 

🔬 A study by Philips/Signify and Wageningen University finds that high light intensity enhances medicinal cannabis yield by increasing inflorescence mass and metabolite concentrations.

 
🇧🇷 Brazil: Named-Patient Imports at Risk, as Market Sees New Product Launches and Regulation for Veterinary Use

🏛️ Importation of medicinal cannabis in Brazil faces risks due to potential taxation and pressure from pharmaceutical unions to restrict special imports in favour of approved products.

 

💼 Medicinal CBD leader Prati-Donaduzzi launched new 20mg CBD Drops in 10ml bottles—company captured 53.5% of pharmacy sales in July 2024 across 19,000 locations.

 
🇮🇱 Israel: High Tariffs on Canadian Cannabis Proposed as Patient Numbers Continue to Decline

🏛️ Ministry of Economy has unveiled final results of its dumping investigation on Canadian cannabis: proposal of up to 175% tariff on Canadian medical cannabis imports to protect local industry from unfair competition.

 

💼 Patient count in Israel continue to decrease by over 4,000 in October, totalling 115,072 as of November 2024. Import rates of cannabis returned to normal, with over 1.6 tons imported.

 

🔬 Study on October 7 attack survivors found no relationship of pre-trauma cannabis use with mental health outcomes, while alcohol significantly increased risk of mental health problems.

 
🇫🇷 France: Medical Cannabis Access Delayed Until 2026, But Debate Over Legalisation Intensifies

🏛️ An amendment to include medical cannabis in the 2025 Social Security Budget aims to extend the experimentation by six months, but expansion of access is not likely before at least 2026.

 

💼 La Chanvrière de l’Aube has planted over 13,000 hectares of Hemp in 2024.

 

🔬 A French study on legalisation in the US reveals diverse regulation models and commercial innovation in Washington, Oregon, and California, allowing the identification of best practices.

 

🇪🇸 Spain: Medical Cannabis Rollout Faces Criticism as CBD Crackdown Continues

🏛️ Pharmacists criticise the Ministry of Health for limiting medical cannabis dispensing to hospitals in the new Royal Decree, despite their experience with potent narcotics like Fentanyl.

 

💼 Construction of cannabis factory Pharmaweed in Extremadura has commenced, with an investment of €18.5 million and up to 42 jobs expected to be created by February 2026.

 

🔬 The Centre for Research in Agricultural Genomics of the Autonomous University of Barcelona has developed a platform for mutation discovery and crop improvement.

 

🇵🇱 Poland: Controversial Ban on Remote Prescriptions Has Been Enacted

🏛️ The ban on remote cannabis prescriptions has been enacted: First prescriptions must be obtained during face-to-face visits; teleconsultations are insufficient for initial prescriptions. Primary care physicians under the National Health Fund can issue remote prescriptions only for ongoing therapy continuation.

 

💼 COSMA received positive marketing authorisation for two cannabis flowers of 20% and 21% THC produced by Cannprisma in Portugal.

 
🇵🇹 Portugal: Expanded Medical Cannabis Options, but Patient Access Concerns Persist

🏛️ Infarmed approved three new cannabis extract formulations from Ferraz Lynce Laboratory, expanding therapeutic options for patients in Portugal.

 

💼 Herdade das Barrocas formed a strategic alliance with indoor grower Indigo Horizon to leverage resources and expertise to bolster market access.

 

🔬 Study analyses knowledge of nurses and nursing students in Portugal regarding medicinal cannabis and its administration: 80% consider it legitimate, but many lack endocannabinoid system knowledge, highlighting need for curriculum inclusion.

 

🇦🇷 Argentina: Cannabis Industry Faces Setbacks, Regulatory Changes Threaten Jobs and Exports

🏛️ Regulatory changes threaten potential of cannabis industry in Argentina of 10,000 jobs and $50 million in cannabis exports, causing uncertainty for existing projects and investors.

 

💼 Many companies have ceased operations in the last year, particularly some State-owned projects like the cannabis production pole of San Juan.

 

🇳🇿 New Zealand: Industry Grows Amid Concerns Over Patient Access

💼 Proliferation of medicinal cannabis clinics in New Zealand has sparked concerns about profit prioritisation over patient care. Most products now contain high THC levels, while high costs continue to impede access for many patients.

 

🔬 Research explores cannabis substitution for alcohol and other drugs among a large sample of cannabis users, indicating potential benefits of cannabis use over alcohol.

 

🇿🇦 South Africa: Clampdown on Illicit Dispensaries

🏛️ SAHPRA is enforcing a clampdown on unlicensed cannabis sales, raiding cannabis outlets in major cities while stating that no dispensary licenses exist and illegal outlets must close.

  • Legal clarity on cannabis clubs and dispensaries in South Africa remains uncertain, with recent legislation on decriminalisation pending activation by the president.
  • Constitutional court ruling mandates fair drug testing policies, balancing employee rights with workplace safety.
 

💼 KwaZulu-Natal municipality successfully harvests its second cannabis crop, securing R6-million funding for a processing facility, overcoming doubts on the project’s viability.

  • Nexus Pharma plans two processing facilities in Pretoria and Cape Town, set to begin operations in 2025 to channel surplus inventory in the market for exportation.
 
🇮🇹 Italy: EU Scrutiny Over CBD Ban as Court Suspends Cannabis Decree

🏛️ European Commission investigates Italy’s proposed ban on CBD and hemp flowers, citing potential violations of EU regulations and competition rules, as entrepreneurs highlight economic impact of hemp in the country.

 

🔬 Avextra’s NEUROBIS has been approved for Phase II trial to evaluate cannabis-based medicine for neurodegenerative disease symptoms with funding by Italian Ministry of Health.

 

🇹🇭 Thailand: Government Drafts New Regulations Amid Concerns Over Illicit Exports

🏛️ Cabinet approved draft regulations for cannabis and hemp product applications, expected to be enacted next year, enabling businesses continued operations if compliant with medical laws.

 

💼 Illicit exportation of Thai-grown cannabis has come to the foreground, with 1.3 tonnes bound for the UK found in local port, UK ambassador meets with officials as smuggling skyrocketed.

 

🇩🇰 Denmark: Medical Cannabis Access Remains Limited Despite Launch of New Products

🏛️ Patients sourcing from the illicit market criticise doctors’ power to deny medical cannabis prescriptions: access remains limited despite parliamentary approval for trials since 2018.

 

💼 Scanleaf begins supplying Bedrocan flower products in Denmark at a cost of DKK 98-128 per gram ($14-18/g), plans approvals of further products.

 
🇨🇿 Czech Republic: New CBD Regulations and Increased Local Medical Cannabis Supply

🏛️ Czech Parliament approved new rules for handling kratom, CBD, and psychomodulatory substances, requiring specific licenses, effective January 1, 2025.

 

💼 Annabis has begun supplying four medical cannabis products to Czech pharmacies produced by local grower Elkoplast—plans future imports and exports by 2025.

 

🇲🇹 Malta: Eleven Cannabis Clubs Now Active as On-Site Consumption Considered

🏛️ Malta’s cannabis authority plans to allow designated consumption areas in the licensed associations to combat black market cannabis sales.

 

💼 Two new cannabis associations licensed in Malta, increasing total number of clubs to 11, promoting safe, regulated products and consumer education.

 

🇺🇾 Uruguay: New Potent Variety Now Available in the Pharmacies

💼 Epsilon, a new sativa-dominant cannabis variety with ≤20% THC is now available in pharmacies with a price of 570 pesos per 5 grams ($2.73/g).

 

🔬 An investigation on the unintended effects of legalisation in Uruguay highlights the complexities of state-controlled policies: emergence of a ‘grey market’ attributed to regulatory novelty, changing policy dynamics over time, and an implementation gap.

 

🇲🇦 Morocco: Local Cannabis Market Brimming with Potential

🏛️ After the significant progress of cannabis regulation in recent years, civil groups are now advocating for recreational legalisation, by lobbying political parties and fostering national debate.

 

💼 CANNAFLEX to open Morocco’s first specialised cannabis (CBD) store in Tangier.

 

🇯🇵 Japan: CBD Companies Brace Ahead of New THC-Free Rules

🏛️ Japan updates CBD requirements with new THC limits, but key issues regarding definitions and thresholds remain unaddressed. Stakeholders’ petitions delayed the new rules’ start date to mid-December, as suppliers seek to source compliant, THC-free formulations for compliance.

 

🇰🇷 South Korea Looks at Japanese CBD Reform for Inspiration

🏛️ South Korea looks to Japan for regulatory reform inspiration, as frustrations mount over the slow pace of revising domestic hemp-related regulations. This scrutiny intensifies as the deadline for the Hemp Special Zone in Andong looms.

 

🇨🇴 Colombia: Regulatory Framework for CBD in Food Products Established

🏛️ A resolution has been published establishing regulations for CBD in foods with a provisional ADI set at 10 mg/day based on safety assessments and studies.

 

💼 MedCana acquired 23 cannabis licenses of companies like Cannabicolombia, Cannehealth, and Royal Cannabis, enhancing its portfolio with $1.6 million in assets for Q3.

 
🇨🇭 Switzerland: Pilot Projects’ Insights Inform Proposed German Experiments

🏛️ Experience of Swiss pilot projects taken into account in the proposed German experiments.

 

🔬 Study finds modified endocannabinoid system regulation in younger multiple sclerosis patients.

 

🇮🇪 Ireland: Legislative Committee Recommends Cannabis Reform

🏛️ As the country prepares for general election on November 29, Ireland’s Justice Committee recommended decriminalising drug possession and allowing a regulated not-for-profit market.

 

🇷🇴 Romania: EU Court Landmark Decision Allows Indoor CBD Cultivation

🏛️ EU Court of Justice has overturned a Romanian Court decision to deny indoor hydroponic hemp cultivation as an agricultural practice.

 

🇺🇦 Ukraine: Registration of Medical Cannabis Ingredients Began

🏛️ Businesses with a valid drug license can start registering cannabis as an active pharmaceutical ingredient and import medical cannabis from abroad: new licensing rules for cannabis cultivation and production to be adopted by November 30, 2024, regulating all stages of circulation.

 

🇨🇷 Costa Rica: Dozens of Hemp Licenses Awarded; Seeking International Investment

🏛️ Costa Rica has already issued 57 hemp licenses since the first one in August 2023, focusing on both commercial cultivation and research, seeking to attract international companies to Costa Rica.

 
🇵🇾 Paraguay: European Demand Spurs Production

💼 Industry representative claims that the entire cannabis harvest for 2024 has been sold to the European market, rising demand requires more overseas production.

 

🇨🇳 China: Concerns Over Cannabis Counterfeit to the US May Be Overstated

💼 Concerns about Chinese counterfeit cannabis products entering the US market may be exaggerated. Media misinformation could undermine the credibility of an emerging industry.

 

 

🇮🇳 India: Company Partners with South Korean Firm to Invest in Hemp-Based Cosmetics

💼 Awega pivots to hemp cosmetics, partnering with South Korean Yuhan Care for manufacturing and marketing in India of hemp-based beauty products, with a goal to invest ₹300 crore ($36m).

 

🇵🇰 Pakistan: Review Highlights Anticancer Potential

🔬 Review find potential of cannabinoids in cancer therapy, improving symptoms, achieving tumor remission, but require more research for standardised protocols and safety.

 

🇮🇷 Iran: Rat Stuy Shows Potential of Cannabinoids for Addiction Treatment

🔬 An Iranian rat study found that CB1 receptor agonist disrupts methamphetamine-induced conditioned place preference and may target anxiety behaviors in addiction treatment.

 

🇬🇪 Georgia: Decriminalisation Didn’t Increase Youth Consumption

🔬 Cannabis use among young adults in the country of Georgia remained stable after removing penalties for consumption in 2018, despite perceived easier access and increased age of first use.

 

🇱🇧 Lebanon: Study Underscores Anticancer Potential of Cannabis

🔬 CBD and THC from Lebanese Cannabis show anti-metastatic potential via apoptosis induction and autophagy alterations in cancer cells.

 

🇧🇸 Bahamas Establishes Cannabis Authority Restricting Licenses to Citizens

🏛️ Government assembling Cannabis Authority to regulate medical and religious cannabis use in The Bahamas; licenses will only be awarded to Bahamian citizens or fully Bahamian-owned entities.

 

🇲🇻 Maldives: Canadian Sentenced to Life for Minimal Possession

🏛️ Canadian Scott William Armstrong sentenced to life for trafficking in Maldives; found guilty despite claiming 27 grammes of cannabis in his room weren’t his.

 

🇲🇺 Mauritius: Review Finds Potential of Cannabis for Neuropathic Pain

🔬 A systematic review finds that cannabinoids show promise in managing neuropathic pain with minimal side effects, warranting further clinical trials for validation.

 

🇦🇩Andorra: CBD Businesses Push for Swiss-Style Regulation

🏛️ CBD businesses in Andorra aim to emulate Swiss law allowing 1% THC on CBD products, engaging politicians as government drafts cannabis cultivation project.

 

🇰🇾 Cayman Islands: Decriminalisation Referendum Planned

🏛️ A planned referendum will include a vote on decriminalisation of small amounts of cannabis.

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