Dried cannabis flower

How Much Does Legal Cannabis Cost In Germany At Cultivation Associations?

Starting on July 1st, 2024, entities can apply with their local regulatory authorities to start a cannabis cultivation association in Germany. According to recent reporting by the International Cannabis Business Conference, over two hundred entities have already applied, with the first cultivation association approved in Germany in Lower Saxony last month.

Cultivation associations are part of a three-pronged sourcing model for adult-use cannabis in Germany. Another avenue for legally sourcing cannabis in Germany is home cultivation. German adults can now cultivate up to three plants in their private residences.

The remaining component to Germany’s legalization model is regional adult-use cannabis commerce pilot trials, which are expected to begin by the end of this year. But, for now, cultivation associations are the only legal way for German adults to acquire cannabis outside of growing it themselves.

According to recent market research by BuzzFeed News Germany, and as locally reported by HNA, “cannabis prices vary between three and ten euros per gram” at cultivation associations, with the average price being “around six euros.”

The average price for legal cannabis in Germany will presumably decrease as time goes by and more cultivation associations open. Officials in North Rhine-Westphalia, a western German state, is predicting that their state alone will eventually be home to as many as 3,000 cultivation associations.

The value of Germany’s legal cannabis market is projected to reach an estimated $4.6 billion by 2034 according to a recent industry analysis by The Niche Research. The Niche Research predicts that Germany’s legal cannabis industry will experience a compound annual growth rate (CAGR) of 17.2% between this year and 2034.

Germany’s home cultivation sector is already increasing in size at an exponential rate thanks to the nation’s new CanG law that permits adults to cultivate up to three plants. According to a recent survey by Pronova BKK, 51% of survey participants selected “Yes, I can imagine having my own cannabis to grow at home” when asked about home cultivation. Another 40% of ‘occasional’ consumers also selected the same option.

A separate survey by YouGov found that 7% of surveyed German adults had already purchased cannabis seeds or clones as of May 2024, and another 11% indicated that they plant to in the future. Cannabis seed banks across the continent have reported huge sales spike after home cultivation became legal in Germany.

Previous projections for Germany’s emerging cannabis industry include one by Heinrich Heine University Dusseldorf which estimated that adult-use legalization will create 27,000 new jobs in Germany, although that projection may prove to be too conservative as time goes along.

According to the European Monitoring Centre for Drugs and Drug Addiction’s (EMCDDA) recently published ‘2024 European Drug Report’, 34.7% of German adults have consumed cannabis at least once in their lives and 8.8% report having consumed cannabis within the last month.