Reaping the Rewards of Regulatory Change — July 2024 Brief

Welcome to July’s cannabis brief, marking a full year of delivering monthly insights to our community of industry leaders!

It’s an honour to provide intelligence that supports your strategic decisions across global markets. We hope the Brief continues to be a valuable resource for achieving your goals, and we welcome your feedback through our engagement form.

 

In July, we explore the significant impacts of regulatory reforms from the first half of the year. US markets like Illinois, Maryland, and New York are hitting record highs, while German and Australian firms report booming quarters, and capacity expansion taking place in Australia and the UK to meet rising demand. Brazil‘s Supreme Court decision to decriminalise cannabis is fueling momentum in Latin America. In Asia-Pacific, Thailand changes course and will not recriminalise, while the Philippines makes progress in medical legalization, and New Zealand simplifies export regulations. Meanwhile, the “first cannabis trade war” is underway with Israel considering tariffs on Canadian imports to protect its market, as both countries face financial woes. Poland seeks to restrict telemedicine while boosting importation, Italian hemp and CBD sector faces legal challenges, while Barcelona continues its crackdown on cannabis clubs.

 

Key figures from the international markets in July include:

  • Over $2 billion worth of cannabis was sold in Illinois in FY24.
  • New York projects $520 million in sales for the full year 2024.
  • German LPs aim to expand beyond the 1,735kg produced last year.
  • Canadian dispensary count slightly falls to 3,663 licensed stores.
  • 27% of Australian medical cannabis users still rely on illicit sources.
  • Only 7,300 patients remain in the Dutch medical cannabis scheme.
  • Italy’s €200 million cannabis light sector and 11,000 jobs are at risk.
 

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

Table of Contents

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Samuel Fisher & Arnau Valdovinos

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In this must-listen episode, we explore how top-tier data and market research are transforming the cannabis market. From decoding consumer trends to crafting unbeatable strategies, discover how numbers and nature converge to keep your business ahead of the curve. Tune in to learn the tricks of the trade! 
🏛️
Regulation

Germany simplifies specialist prescriptions, issues first permits to clubs and expands licenses for LPs. Israel plans to impose tariffs on Canadian imports, Poland will restrict telemedicine prescriptions, Italy‘s amendment threatens hemp industry, Thailand will not recriminalise cannabis, New Zealand streamlines export regulations, and the Philippines considers legal medical market.

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Market

US markets in IllinoisMaryland, and New York are reaching record highs, while firms in Germany and Australia report strong quarter results. Australia and the UK are expanding capacity to meet growing demand from private clinics, the Netherlands attracts American brands, Argentina makes its first flower exports, and a new online clinic opens in Greece.

🔬
Market

Potential of CBG to improve anxiety, stress and mood has been demonstrated in a double-blind, placebo-controlled, crossover, field trial.

 Infographic of the Month:

Medical Cannabis Supply / Demand in Israel

The Israeli Medical Cannabis Market: Navigating Tariffs, Trade Wars, and Market Shifts
 The Israeli medical cannabis market, once booming with rapid growth and bold reforms, now faces a crisis due to alleged price dumping by Canadian exporters. As protective tariffs are proposed to shield local producers from the influx of cheap imports, the market’s future hangs in the balance. This article unpacks the investigation’s findings and explores what these new trade barriers could mean for the industry’s stability. Read on to find out how this might reshape the market!
🇺🇸 US: Strong public support for cannabis reform in the US is evidenced by positive DEA comments, as marijuana and hemp factions clash over the 2024 Farm Bill and the Florida legalisation battle. Emerging markets like Illinois, Maryland, and Missouri perform well, while Ohio prepares for its first adult-use sales:

 

🏛️Unprecedented support revealed by DEA comment period: 93% of comments in favour of cannabis reform, and 57% for complete descheduling of cannabis.

 

💼 Despite slowdown in mature states, U.S. cannabis sales reached record highs, with retail sales over $32 billion and wholesale sales around $11.2 billion led by new licensing in key states.

 

🔬 Double-blind, placebo-controlled, crossover, field trial investigates the acute effects of cannabigerol (CBG) finding significant reductions on anxiety, stress, and mood.

 
🇩🇪 Germany: Market boom continues with streamlined reimbursement by specialists, expanded medical grower licenses, and first cannabis club permits. However, concerns persist about lack of legal recreational supply, fuelling medical fraud and the illicit market:

 

🏛️ The Federal Joint Committee (G-BA) determined that specialist doctors do not require insurance company approval for reimbursed cannabis prescriptions. However, risk of cost-effectiveness audits on doctors, leading to potential repayment of costs, raises concerns that doctors will keep asking for approval before prescribing.

  • The three licensed domestic medical cannabis growers have received expansion to their production licenses, which allowed them to produce 1,735kg last year, 623kg of which made its way to the pharmacies. Tilray plans to increase production 5xDemecan intends to produce up to 2 tonnesAurora produces up to 1 tonne and plans to introduce 7 additional cultivars.
  • Associations are receiving the first permits for cannabis cultivation throughout the country: the first license was granted as of July 8 in Lower Saxony, with a total of 16 applying in the first week; in North-Rhine Westphalia the processing can take up to 3 months; the first club has been licensed in Hannover expecting to deliver products at €7/g; Saarland announced a restrictive assessment for cultivation associations; while conservative-ruled Bavaria has seen 12 applications despite high investment costs of up to €300,000 and bureaucratic hurdles and extensive documentation obligations.
  • Black market remains strong in Germany as the only legal source of cannabis is home cultivation, with cannabis clubs intended for communal growing facing regulatory confusion, delaying establishment and creating uncertainty for potential growers. Critics argue legalization lacks proper market structure and youth protection, enabling drug mafia to thrive.
  • Stricter cannabis rules have been introduced in Bavaria prohibiting smoking at folk festivals and in designated smoking areas, including outdoor restaurant spaces. Municipalities can extend consumption bans to public areas like city parks, similar to alcohol regulations.
  • Agriculture Ministry presents draft law to liberalise cultivation and handling of industrial hemp in Germany aims to provide legal certainty and expand opportunities in the hemp sector.
  • A survey shows that many Germans are concerned about an increase in traffic accidents after the new limit for THC while driving in Germany is set up to 3.5 ng/ml.
  • Police and prosecutors in Coblenz are investigating a CBD vending machine near a school.
 

💼 Medical cannabis market in Germany has nearly doubled since legalisation, with 80% of private prescriptions and only 20% reimbursed. This has raised concerns about recreational use disguised as medical prescriptions, after the new law made cannabis “as available as Ibuprofen”. German Pharmaceutical Society is skeptical of telemedical offers used for recreational purposes, which it claims violates professional standards posing risks to patients, as advertising campaigns are being criticised for promoting “illegal procurement” of cannabis:

 

🔬 The study analyzed characteristics of 7,075 cannabis prescriptions received by the top 10 German cannabis pharmacies in 2021. It showed that 96% were for cannabis flowers, with 71% issued as private prescriptions. Of these, 24% were between 14 and 30 years old, and the average age was 39 years. Additionally, 83% were issued to men. The average private prescription was for 17 grams, compared to 39 grams prescribed under health insurance.

 

 

🇨🇦 Canada: Import tariffs are a watershed for the Canadian sector, which is still enduring financial losses and restructuring. The sector hopes for regulatory reform to boost the Canadian cannabis industry:

 

🏛️ Cannabis industry associations express disappointment with Israel’s preliminary decision to impose import tariffs for Canadian cannabis products, as the preliminary report of the investigation is found to be flawed and use incorrect data.

 

💼 Year-over-year growth in cannabis sales continues to slow as the market reaches saturation, with the number of retail cannabis stores slightly decreasing to 3,663, led by BC and Alberta.

 

🔬 Zentrela‘s CEO aims to understand how cannabis affects mental state through brainwave analysis technology, as the company launches its products in Europe.

 
🇦🇺 Australia: Companies report generally successful FY24 results, continue to expand capacity, as vape and concentrate craze persists:

 

🏛️ A report finds current cannabis policy in Australia ineffective, leading to criminal involvement in the A$5 billion cannabis market and resource depletion, advocating for adult access to reduce criminal markets, improve community health and safety.

 

💼 The Royal Australian College of General Practitioners has rejected applications of several medical cannabis companies to exhibit in the annual RACGP conference, potentially stigmatising the industry in the midst of pressure against tele-medicine clinics and prescribers:

 

🔬 Survey on medical cannabis users finds 27% still use mainly illicit cannabis, while prescribed cannabis users were less likely to have been recreational users and to administer cannabis by smoking compared to illicit cannabis users (22% vs 65%).

 
🇬🇧 UK: Medical cannabis production capacity is increasing in the United Kingdom, driven by demand from private clinics:

 

🏛️ Labour’s historic victory in the UK election raises questions about potential drug policy reform, despite not explicitly supporting it in its manifesto. Minority opposition parties like the Greens and Liberal Democrats are in favour of reform, as the illicit market rakes in over £2.5 billion a year.

 

💼 Private cannabis clinics in London are seeing a significant increase in patients seeking treatment for chronic pain and mental health conditions. Mamedica grew tenfold to almost 3,000 patients in 2023, while the Twenty21 scheme has over 4,600 patients nationwide.

 

🔬 New Cannabinoid Research & Development Group believes that the UK has potential to be a global leader in cannabinoid R&D. The report recommends transferring licensing authority, creating a medical R&D roadmap, and fostering industry partnerships.

 
🇧🇷 Brazil: Interest in cannabis is booming in Brazil in the aftermath of the decision to decriminalise it by the Supreme Federal Court:

 

🏛️ Recent decriminalisation of cannabis by the Supreme Federal Court (STF) could impact 31% of drug trafficking convictions and up to 90,068 inmates may benefit from sentence reviews.

 

💼 Online searches for cannabis seeds have increased by 130% since STF’s decriminalisation decision determined that importing small quantities of cannabis seeds is not a crime.

 

🔬 Brazil has developed the first variety of industrial cannabis adapted to local conditions with THC below 0.3%, created by crossbreeding plants from Colombia, France, Italy, the US, and Brazil.

 
🇮🇱 Israel: Country to impose tariffs on Canadian imports following an investigation that found substantial dumping rates. The domestic market struggles with regulatory changes as patient figures continue falling:

 

🏛️ A preliminary decision on the investigation of cannabis imports from Canada causing damage to the local industry has been published. After reviewing the accounts of Canadian producers, the Commissioner on Trade Levies found dumping rates ranging from 63% to 369% and will recommend tariffs to protect the domestic industry.

 

💼 The fall in the number of medical cannabis license holders continues to decrease, and it has dropped by about 8% in the last six months due to difficulties in managing treatment of patients transferred to health insurance and limited flexibility in the newly introduced prescription model.

 

🔬 CannaMore Biotechs announces successful completion of Phase 2a clinical trial for CBD-based treatment for Ulcerative Colitis, reducing disease severity and improving symptoms.

 
🇳🇱 Netherlands: The Dutch legal cannabis supply chain is attracting foreign celebrities, but enhancing quality and strengthening regulations remain essential:

 

🏛️ The Dutch cannabis industry, as a united front, has sent a letter to Parliament requesting deeper regulations: decriminalise possession of small amounts, increase stock limits for Coffee Shops, allow personal cultivation of up to 3 plants, reform THC limits for drivers, and expand the current experiment on the Coffee Shops supply chain.

 

💼 Amsterdam becomes prime real state for American cannabis brands and celebrities: Snoop Dogg to open stores named S.W.E.D. also in LA; Mike Tyson has opened its first branded retail store in Amsterdam after it opened a Coffee shop last year. Both Snoop Dogg’s and Mike Tyson clubs are owned by entrepreneur Rachid Bahida.

  • Lack of quality in the legal supply chain a concern, as dealers are prepared to seize their chance with disappointed costumers by handing out flyers at the door of coffee shops.
  • Domestic medical cannabis market continues to shrink in the Netherlands for the sixth year in a row, with a 5% drop in dispensations in 2023 to only 7,300 patients. The growing share of Epidyolex has nonetheless contributed to rising spending which now amounts to €4.6 million.
 

🔬 Cultivators consortium investigates the spatial distribution of cannabinoid content within a plant, showed consistent THC percentages proving the effectiveness of cultivation and analysis.

 

 

🇵🇱 Poland: Import limits to be increased to meet growing demand in Poland, despite the Health Ministry seeking to limit remote medical cannabis prescriptions:

 

🏛️The Ministry of Health plans to eliminate remote medical cannabis prescriptions without medical examination of the patient, including for medical cannabis, to increase control. The Supreme Medical Council aims to block the uncontrolled dispensing of narcotics online, despite opposing a total ban on issuing prescriptions during teleconsultations.

 

💼 Import limits of medical cannabis to Poland likely to be increased to 10 tonnes a year from the current 6 tonnes to meet growing demand which currently sits at 300-400kg a month.

  • Polish pharmacy provides magistral preparation of rosin (solvent-free hemp extract) from available medical cannabis flower, at a cost of 70 PLN ($18).
 

🔬 Cannabinoids potential in neurodegenerative diseases highlighted in a recent review showing that terpene and vitamin B12 supplementation may enhance the effects of CBD in treatment.

 
🇵🇹 Portugal: More medical cannabis products are being licensed in Portugal:

 

🏛️ Infarmed approved two new cannabis-based preparationsSatalliv (THC) and Tilray (THC10 CBD10) for medicinal use in Portugal, expanding therapeutic options for patients to six products.

  • The Food and Economic Security Authority (ASAE) seized CBD extracts in specialised shop, but did not seize flowers due to them being labelled as collectible items.
 

💼 Portugal granted its first medicinal cannabis cultivation license in 2014; 50 companies now hold licenses as of July 2024, with exports jumping from 204kg in 2017 to 12 tonnes in 2023.

 

🔬 Study found differences between label claims and actual cannabinoid contents of CBD products available in Portugal.

 
🇪🇸 Spain: Barcelona city council continues its offensive against cannabis clubs:

 

🏛️ Offensive against the cannabis club model is in full swing in Barcelona, with 30 of the city hundreds’ of clubs receiving a closure order.

 

💼 Ondara Directorship, a 14-hectare greenhouse grower in central Spain, has exported 923kg of flower it held in stock, marking a significant milestone towards the reactivation of cultivation.

 

🔬 A clinical study sponsored by CBD brand Votum World investigates the analgesic and anti-inflammatory properties in patients with temporomandibular joint pathology. The brand adds basque surfer Bitor Garitaonandia as ambassador.

 

 

🇮🇹 Italy: Drama sees decree against CBD published, shelved, and then hemp flower ban passed as an amendment to the security law:

 

🏛️ Amendment to Security bill equates light cannabis to soft drugs; final approval postponed to September after lengthy debate. Government amendment equates industrial hemp to narcotic, banning all processing of hemp plants producing inflorescences.

 

🔬 The first regional cannabis research center, CORE-C, is established in Puglia through an agreement between Farmalabor and the University of Bari.

 
🇨🇭 Switzerland: Court rules no reimbursement for medical cannabis

 

🏛️ Administrative court ruled that health and disability insurance does not need to cover costs for medically prescribed cannabis, as court found alternative treatments available for man with ADHD.

 

💼 Over 700 participants have registered in Basel-country to acquire over 5,000 deliveries of study products in the Grashaus dispensaries. The Introduction of legal THC specialist shops in Basel-country reduced the illegal market and promoted lower-risk forms such as extracts and edibles.

 
🇦🇷 Argentina resumes patient approvals in the cannabis registry and begins supplying medical cannabis flower to international markets:

 

🏛️ Following long delays with 90,000 patients waiting to be approved, in the last few weeks there has been a massive approval of renewals and new registrations of patients in the Cannabis Program Registry (Reprocann), despite the intention of the Ministry of Health to limit the approved conditions to access the program.

 

💼 Argentina exports high-THC medical cannabis flower to international markets: Cannava, public company from the Jujuy province, has exported 730kg (400kg to Portugal, 200kg to Australia and 130kg to Germany) and projects a turnover of €5M this year and €7.6M next year.

 
🇳🇿 New Zealand’s export regulations streamlined to open global market opportunities, as the domestic market doubled year-on-year in 2023:

 

🏛️ The government approved changes to the Medicinal Cannabis Scheme, improving export regulations. Exporters now need to align with importing jurisdiction standards, different from those in New Zealand, opening up global market opportunities. The amendment regulations also broaden the definitions of cannabis-based ingredients and starting material for medicinal cannabis.

 

💼 Domestic use of prescribed medicinal cannabis in the country doubled in the last year.

  • Rua Biosciences launches new products in Germany produced by partners Schroll Medical (Denmark) and Alphafarma (Malta), introduces flower product in New Zealand and expands compassionate access program to benefit 52 patients per month.
  • Canadian giant Aurora Cannabis seeks to expand its presence to New Zealand by hiring a Territory Manager.
 
🇩🇰 Denmark: CBD companies face scrutiny for marketing practices, as domestic medical cannabis producers report mixed financial results:

 

💼 DanCann Pharma achieved a pharmacy sales growth of +40% YoY in 2023, as it aims to increase the current Rx portfolio sales volume to 20,000 packages and it submitted applications for a THC-dominant and a CBD-dominant varieties, expected to launch later this year.

 
🇹🇭 Thailand’s Cannabis Policy U-Turn: Aims of recriminalisation are dropped; the country will pursue medical regulation instead.

 

🏛️ Despite push by the Prime Minister to return cannabis to narcotic status, with a majority of the Narcotics Control Committee voting in favour, the position to support progressive regulation of the Deputy Prime Minister, Interior Minister and leader of the Conservative Bhumjaithai Party (who recently achieved a sounding victory in Senate elections) has emerged victorious.

 
🇨🇴 Colombia’s cannabis sector remains in the doldrums despite new export milestones

 

🏛️ Colombian deputies reintroduced a bill, first rejected last year, intending to regulate adult cannabis use, led by representative Juan Carlos Losada from the Liberal Party. President Gustavo Petro supports regulation to combat drug violence, citing global trends in cannabis legalisation.

 

💼 Clever Leaves announces agreement to introduce its products in Poland later this year, while claiming a nearly 80% share of the Colombian export quota, primarily to Brasil and Australia.

 
🇨🇿 Czech Republic dampens its ambitious cannabis reform plans, key legalization proponent in government resigns:

 

🏛️ Czech ruling parties agreed to allow adults to grow three cannabis plants and possess a total of 600 grams at home, while not advancing the possibility to establish cannabis clubs.

 
🇫🇷 France: cannabis agenda in the hands of the yet-to-be-elected government:

 

🏛️ The process to form the new French government following the elections has halted the overhaul of the medical cannabis system.

 

💼 SAS Biostructure, near Clermont-Ferrand, set to invest €6.2M to produce hemp concrete panels and wooden frames using sustainable and eco-friendly materials.

 
🇬🇷 Greece: The first online medical cannabis clinic is now open

 

💼 Greek telehealth platform Doctor Any Time launches Greece’s first medical cannabis specialised clinicReliefTime Clinics, connecting patients with 70 doctors.

 
🇿🇦 South Africa: Hemp market woes hit South African farmers:

 

🏛️ South African hemp farmers face market challenges and unfulfilled promises, struggling to sell CBD flowers and other products.

  • GESLabs announces extraction, distillation, and formulation expansion as well as the launch of live rosin products and price drops in the second half of 2024.
 
🇲🇦 Morocco prepares for a record legal harvest this year by 3,000 farmers:

 

💼 Nearly 3,000 cannabis-related licenses have been issued in 2024, up from 609 in 2023, primarily for cultivation and production. The number of legal cannabis farmers in the Rif increasing from 430 to 3,000, expecting a record harvest up from the 296 tonnes of legal, low-potency cannabis harvested last year as the licensed surface has increased 10-fold from 286 hectares to 2,700.

 
🇲🇹 Malta will admit more cannabis clubs to boost its competitiveness:

 

🏛️ The Responsible Cannabis Authority in Malta will not impose a cap on the number of associations, seeking to provide better competitiveness and product quality. The Eighth Cannabis Harm Reduction Association has been licensed as the regulatory framework for Cannabis Harm Reduction Associations has been updated.

 
🇵🇭 Philippines: The House of Representatives passes an act to legalise medical cannabis, yet to be approved by Senate and President:

 

🏛️ An Act was approved by a majority of the House of Representatives with 177 lawmakers in favour, 9 against and 9 abstentions: the Act regulates access and use of medical cannabis, establishes the Medical Cannabis Office (MCO), defines qualifying conditions and sets penalties for unauthorised acts.

 

 

🇺🇾 Uruguay: Cannabis policy reform remains unfinished business in Uruguay a decade after legalization:

 

🏛️ Survey finds that 40% of Uruguayans believe current cannabis regulation is ineffective, despite increased acceptance over the past decade and support for legalisation, particularly among higher educated and left-wing Frente Amplio voters.

 

💼 Auction for Boreal medicinal cannabis plant in Salto closed in July 2023 has been scheduled for August 27, after initial $3.4m tender failed to attract buyers to the $15m facility.

 

 

🇭🇺 Hungary: Unregulated semi-synthetics cause harms in Hungary:

 

🏛️ Narcotic gummies with THCJD caused 31 tourists to be hospitalised in Budapest.

 

🔬 Review of antidepressant effects of herbal cannabis is non conclusive, however its composition in regards of terpenes, and THC:CBD ratio may influence its effects on depression.

 

 

🇿🇼 Zimbabwe production is starting to come online, small farmers excluded:

 

🏛️ Report argues that cannabis policy reform in Zimbabwe should prioritise small-scale producers for economic and social reasons, which have been prevented from participating in the legal market.

 

💼 Zimbabwe aims to tap into the global cannabis market: after legalising medicinal cannabis production in 2018, and licensing as many as 60 companies in 2022, the first farms are coming online: Thathokuhle grows 20 hectares with a yield of 1.5 tonnes per hectare and 85 employees that increase to 150 during the harvest, cannabis flower fetches US$650 per kilogramme.

 

 

🏛️ Caribbean nations advance, Costa Rica and Nigeria stay behind:

 

🇳🇬 Spokesman for the Nigerian drug enforcement agency opposes cannabis legalisation due to health and security concerns, despite acknowledging the global trend towards legalizing cannabis for medicinal and recreational use.

 

🇧🇸 In the Bahamas, Prime Minister Phillip Davis supports bills to legalise medical and religious use of cannabis and decriminalise possession. The Prime Minister of The Bahamas pledges a huge impact from the legalisation of cannabis, despite ownership limits to obtain licenses.

 

🇨🇰 In the Cook Islands, the Ministry of Health has set requirements to bring medicinal cannabis with a prescription from New Zealand or Australia.

 

🇨🇷 Costa Rican President Rodrigo Chaves will no longer push for the approval of a bill to legalise recreational cannabis, after Parliament rejects the proposed bill.

 

🇦🇬 Antigua and Barbuda to introduce legislation clearing criminal records for minor cannabis convictions.

 

🇰🇳 In Saint Kitts and Nevis the cannabis Board held its first meeting, marking a milestone in implementing the Cannabis Act, 2020.

 

 

💼 North Macedonian company to supply Canopy Growth:
 

 

🇲🇰 Ohrid Organics signs supply agreement with Canopy Growth for German medicinal cannabis market.

 

🇲🇽 Xebra Brands expands partnership with ICAN to enhance CBD product offering in Mexico.

 

 

🔬 Hemp extract anti-cancer potential explored in China and Lebanon:

 

🇨🇳 Chinese mice model study shows potential of Hemp essential oil to treat tumors and neuropathic pain activity.

 

🇮🇳 A double-blind multicenter randomized clinical trial found a nanodispersible cannabidiol oral solution effective to treat mild to moderate anxiety subjects.

 

🇱🇧 Lebanese cannabis oil extract shows potential as a treatment for acute myeloid leukemia (AML).

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