Since U.S. states such as Colorado initiated the legalization and regulation of recreational cannabis a decade ago, there has been a simultaneous shift in attitudes toward cannabis prohibition in countries around the world.
As more countries recognize the potential benefits of cannabis, both medically and recreationally, a myriad of opportunities has emerged for investors, entrepreneurs and enthusiasts worldwide. Today, the cannabis market worldwide is projected to reach nearly $61 billion in revenue in 2024 and is expected to reach $103 billion by 2028.
With almost 448.4 million people, the European Union has a potential cannabis market larger than the United States and Canada combined. At present, some form of medicinal cannabis is legal in 23 European countries, including Germany, the Netherlands and Italy, and five nations have decriminalized it. Several other European nations are embracing cannabis legalization to varying degrees, while some countries, such as Portugal and Luxembourg, are exploring or have implemented full recreational legalization. In addition, Australia’s medical cannabis program continues to grow and support for legalization is increasing.The motivations behind these decisions often include harm reduction, public health considerations and economic opportunities.
As the U.S. cannabis industry remains stagnant, some of the industry’s top experts will convene at SXSW 2024 to discuss some of the most interesting global cannabis developments expected this year:
Germany Readies for Recreational Cannabis
Today in Germany, medical cannabis is legal, but it is very strictly regulated. The legalization of marijuana for medical use occurred in 2017 and allows Germans to grow, sell and import cannabis for medical use in the country. And for the time being, commercial dispensaries are nonexistent.
However, all that is about to change in 2024 as the German government finalizes details for a long-awaited reform of the country’s cannabis laws. Although the plan has been stymied by delays, the current schedule calls for possession and cultivation of cannabis to become legal in Germany on April 1, with the establishment of cannabis “social clubs” to occur as quickly as this summer.
Nearly seven million Germans utilized the country’s medical cannabis program in 2022, and with a total population of 83 million, the easing of cannabis regulations will most likely create the largest legal cannabis market in Europe and make Germany the first EU nation to create an adult-use recreational cannabis market.
Switzerland’s Unique, Cautious Approach
Cannabis is legal for medical use in Switzerland, but only in special cases, such as pain relief. In addition, low-potency cannabis can be bought legally for non-medical use, but only when it contains less than 1% tetrahydrocannabinol (THC), the psychoactive substance known for generating the “high” associated with cannabis. But rather than dive in full throttle into a recreational cannabis market, Switzerland has developed unique pilot programs to help provide insight into any societal effects that may occur as a result of a regulated adult-use market.
Lasting as long as five years, the pilot programs will occur in multiple jurisdictions and involve thousands of participants across the country. Those recruited will be required to complete an online survey and pass a medical suitability test. Once accepted into the program, participants will be able to legally purchase cannabis at designated locations for personal consumption.
At the close of 2023, Switzerland’s health authority was granted approval to establish these locations, which will essentially be the first legal adult-use cannabis dispensaries in Europe. The program will observe and document participants’ consumption patterns and physical and mental health. The results will be used to help inform any potential adult-use marijuana reform regulations in Switzerland.
Thailand Tries To Turn Back the Clock
Thailand’s new government is bucking the trend toward legalization by introducing a bill that amends the current cannabis legislation to ban the recreational use of cannabis after decriminalization. Thailand became the first Southeast Asian country to decriminalize recreational cannabis in 2022 after regulating its medical use in 2018.
Cannabis was initially decriminalized for personal use, and its cultivation was primarily intended for industrial purposes. However, a lack of regulatory oversight allowed the sale of cannabis products for recreational use to quickly grow, leading to a proliferation of cannabis shops across the country. The new legislation is a response to concerns over this unmanaged growth.
Under the new legislation, medical cannabis will continue to be available, but recreational use will be strictly prohibited. The sudden shift will potentially impact domestic consumption in the country, as well as the burgeoning cannabis tourism industry that emerged following the nation’s easing of cannabis restrictions.
A Cautionary Tale for Cannabis Proponents
The potential backlash in Thailand provides a cautionary tale for cannabis legalization advocates in nations around the world. In the absence of well-researched and agreed-upon regulatory guardrails, the risk of unanticipated consequences greatly increases — and demonstrates how rapidly cannabis legalization can evolve.
As some countries fully embrace recreational cannabis, others are taking cautious steps toward decriminalization or permitting medicinal use. The motivations behind these changes often include a desire to eliminate black market activity, generate tax revenue, improve public health and address the social implications of cannabis prohibition. As societal attitudes continue to shift, more countries may join the movement toward a more liberal approach to cannabis regulation in the years to come.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.