Recreational Cannabis - Europe

Europe

Revenue in the Recreational Cannabis market market in Europe is forecasted to reach €1.55bn in 2024.
The revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 4.91%, leading to a market volume of €1.97bn by 2029.
When compared globally, the United States is expected to generate the highest revenue (€23.15bn in 2024).
In terms of per person revenues in 2024, €444.00 are generated in relation to Europe's total population figures.
In Europe, Germany is leading the way in the recreational cannabis market with a growing number of legal dispensaries and consumer awareness.

Key regions: Spain, South Africa, Europe, Netherlands, Australia

Mercado

Región

Comparación de regiones

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Analyst Opinion

The recreational cannabis market in Europe is experiencing a significant shift in consumer preferences, market trends, and local special circumstances that are shaping its development.

Customer preferences: Consumers in Europe are increasingly leaning towards cannabis products for recreational purposes due to changing attitudes towards cannabis, growing awareness of its potential health benefits, and the desire for alternative relaxation options. This shift in preferences is driving the demand for a variety of cannabis products, including edibles, concentrates, and topicals.

Trends in the market: In countries like the Netherlands, known for its lenient cannabis laws, the market is well-established with a long history of cannabis cafes and tourism. On the other hand, countries like Germany and Italy are witnessing a more recent but rapid growth in the recreational cannabis market, fueled by legalization efforts and increasing acceptance among the population. These countries are experiencing a surge in the number of dispensaries, online platforms, and cannabis-friendly events catering to the growing demand.

Local special circumstances: Each European country has its unique regulatory environment and cultural attitudes towards cannabis, influencing the market dynamics. For instance, Spain allows for private cannabis clubs where members can collectively cultivate and consume cannabis, creating a niche market within the broader recreational cannabis industry. In contrast, countries like France have stricter regulations, leading to a more underground market with limited legal access to cannabis products.

Underlying macroeconomic factors: The recreational cannabis market in Europe is also influenced by broader macroeconomic factors such as economic stability, government policies, and public health priorities. As more countries move towards legalization or decriminalization, there is a potential for increased tax revenue, job creation, and economic growth associated with the cannabis industry. However, concerns about the impact on public health, youth consumption, and drug trafficking are prompting governments to carefully regulate the market to balance economic opportunities with social responsibility.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on companies' revenues, funding values and global consumer survey data. Revenues include retail, sales and taxes.

Modeling approach / Market size:

Market sizes are determined by a Top-Down approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use financial reports, third-party data. Next, we use relevant key market indicators and data from country-specific associations such as tobacco spending per capita, medical product spending per capita, consumer spending and consumer spending for recreation purposes, population. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, S-Curve function, ARIMA time series model and exponential curve function.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. GCS data is reweighted for representativeness.