According to a survey conducted by Bloomwell Group, a medical cannabis holding company, consumers of marijuana in the United States believe that the widely anticipated legalization of recreational cannabis in Germany will create great opportunities for investment, travel and trade. The survey found that 80% of American cannabis consumers were convinced that great investment opportunities exist in marijuana companies. Six in ten individuals surveyed also revealed that they would invest in European-based marijuana stocks.
The new coalition government in Germany made up of the SDP party, the Greens and the FDP party announced last year that adult-use marijuana would be legalized and sold in licensed outlets. Although no definitive schedule for this legalization was given, the news has created massive excitement because of its ramifications for the cannabis industry in Germany (where medical marijuana is already legal) and the broader European Union block.
It is expected that once Germany opens its cannabis market fully, there will be a domino effect of legalizations in other countries in mainland Europe. Additionally, Germany is likely to be the largest marijuana market in the world given that its population is bigger than that of California or Canada, the two jurisdictions that currently dominate the legal cannabis industry.
The Bloomwell Group survey polled 845 marijuana users in the U.S. in order to determine their views about the upcoming marijuana legalization in Germany. A huge majority (87%) were of the view that cannabis prohibition should be ended globally, while 52% acknowledged that Germany will become the largest cannabis market once legalization takes effect. An estimated 65% of the survey respondents expressed a desire to visit a German city in order to experience what its marijuana industry was like.
The respondents also revealed their awareness that massive investment opportunities would open up when legalization is implemented. This expectation is supported by an analysis conducted by BDSA showing that the German cannabis industry has the potential to generate at least $3 billion annually three years from its opening. Other analysts forecast a market size of at least $10 billion annually if the supply challenges that plagued the launch of the medical marijuana market are avoided.
The U.S. cannabis industry has a huge opportunity to plug those supply gaps, at least in the beginning, if the needed regulatory reforms can be passed at the federal level. For example, the passing of the MORE Act can allow American companies to transact with the German marijuana sector without impediment.
If those reforms don’t happen soon enough, the United States risks being a bystander as cannabis takes off in one country after another on the European continent and globally. Such an eventuality would rob entities such as Red White & Bloom Brands Inc. (CSE: RWB) (OTCQX: RWBYF) of a great opportunity to expand into Europe and make their mark on that huge market.
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