Only One European Country’s Cannabis Policy Is Actually Undermining The Illicit Market (Op-Ed)

“While European nations have taken a diverse approaches to cannabis policy and reforms, a majority of these models have yet to challenge the foothold of illicit sellers.”

By Niklas Kouparanis, Bloomwell Group

In the last several decades, Europe has made significant strides in its approach to legalized cannabis use, moving from strict criminalization and prohibition to decriminalization and legalized medical and adult-use models. In addition to expanding healthcare and adult-use access to cannabis use, it’s also important to discuss what impact these varying policies have in counteracting the foothold of illicit cannabis markets throughout the European Union.

Under E.U. law, many countries encounter hurdles in legalizing adult-use commercial cannabis, as they likely would be subject to penalties under the European Court of Justice. For this reason, several countries—including the Netherlands, Malta, Luxembourg, Switzerland and Germany—have taken unique approaches to cannabis policy.

Germany, however, stands out in terms of producing a measurable impact to push back against the illicit cannabis market.

The Netherlands: A Tolerance Model Without Market Control

Long seen as a pioneer, the Netherlands’ approach to cannabis is based on tolerance rather than legalization. Adults can purchase small quantities of cannabis from Dutch “coffee shops,” which are tolerated but not fully legalized. These shops are forced to source products from an illegal supply chain due to a lack of legal production.

In terms of impact, the tolerated model might seem like a considerable way to go, as every adult in the Netherlands can access coffee shops. However, in terms of control, product safety and regulation, the Dutch cannabis system is vulnerable, as the whole value chain is not regulated and the products are produced illegally for the coffee shops.

Due to the drawbacks of the tolerance model, the Netherlands has just initiated its Weed Experiment. The experiment will allow coffee shops in 10 municipalities to sell legally produced and supplied cannabis. A report on the results of the closed-loop experiment is expected for 2028.

Malta: Liberal on Paper, Constrained in Practice

Malta decriminalized cannabis use in 2015 and, in 2021, became the first European Union country to allow the cultivation and private personal use of cannabis. However, the market remains heavily restricted.

The government permits adult cultivation of cannabis (up to four plants) and personal possession of seven grams when away from home and 50 grams at home. The country also legalized nonprofit cannabis associations that can distribute cannabis to their members. These clubs are limited to 500 people, and membership is only available to residents. However, the public consumption, transportation and sale of cannabis are still banned and can result in fines.

With club membership strictly limited, public consumption outlawed and no other options for adults to legally purchase cannabis outside of the nonprofit associations, the market remains very limited. As of May 2025, no public information is available detailing the exact amount of cannabis provided by these associations to their members.

Luxembourg: Legalization Without Access

In 2021, Luxembourg legalized cannabis cultivation for adult use. However, it wasn’t until two years later, in 2023, that the country defined its legal cultivation and possession rules for personal use. Under the law, adults can grow up to four plants and possess three grams. However, consumption, transportation, and sale in public spaces are still banned and can result in fines.

As reported by the Luxembourg Times, 46.3 percent of the country’s residents have tried cannabis at least once in their lives, including 14.2 percent who have used the plant within the last year and 7.8 percent in the past month, according to an ILRES poll. Just under seven out of ten people who grow cannabis at home said they started cultivation after the government legalized home grow, amounting to just 11.5 percent of recent users.

Despite homegrow gaining moderate interest from residents after legalization, there has not been a significant growth in users, and this has not resulted in an explosion in the market. For now, the market remains stagnant and limited in counteracting illicit sellers due to the country’s lack of legalized sales marketplaces as well as restrictions on public consumption.

Switzerland: Research-Oriented but Limited in Scope

Switzerland has taken a scientific approach through pilot programs across seven major cities to determine the viability of cannabis legalization and controlled distribution within the country over 10 years.

While the pilot programs are set up to allow recreational cannabis commerce at a local level, in terms of true societal impact, this initial rollout does not serve as a solution to counteract the illicit cannabis market. This is mainly due to the limited availability of the majority of Swiss residents. Only Swiss residents who have previously established histories of using cannabis can purchase through the pilot program entities. These pilot programs are also limited to a maximum of a few hundred or a few thousand participants.

Germany: A Functional, Scalable Legal Medical Market

Germany’s cannabis market is widely hailed as one of Europe’s most progressive. On April 1, 2024, the country passed The Cannabis Act (CanG), reclassifying cannabis as a non-narcotic. Through this, administrative burdens were eased for medical cannabis patients and prescribing doctors. CanG also allows possession of up to 25 grams of cannabis and cultivation of up to 3 plants, and it permits the rollout of not-for-profit cannabis clubs.

In January 2025, my medical cannabis company, Bloomwell Group, released its “Cannabis 2024 in Germany: A new era for patients in Germany” report. According to the report, in December 2024, the number of prescriptions issued increased by a little less than 1,000 percent compared to March 2024, following the reclassification of cannabis. The rise of patients who are now able to access cannabis for various medical conditions signals a shift in the perception of cannabis being used for its wellness properties in the medical space.

Telemedical technology in the sector has also positively impacted growth and counteracted the illicit market. Telemedical platforms offer convenience for patients and the physicians who prescribe their treatment. This is extremely helpful to patients who are located in rural or isolated areas of Germany and have geographic limitations in accessing healthcare professionals for their medical needs.

The Bloomwell report also revealed that medical cannabis prices dropped to an all-time low by the end of 2024. During October and November 2024, select strains were available for just €3.99 per gram, a stark contrast to previous pricing models. These decreases are due to a steady supply and increased demand for medical cannabis as the number of self-paying patients continues to soar.

Such demand continues to open doors for international imports of medical cannabis to supply the growing market. Just in the first quarter of 2025, more than 37 tonnes of cannabis for medical or scientific purposes have been imported to Germany, according to the Federal Institute for Drugs and Medical Devices (BfArM).

Unlike other legalized markets, like California in the U.S., which fell victim to being dwarfed by a behemoth illicit market, the passage of CanG served as a catalyst to boom the German medical market, and with more patients able to access cannabis, prices of the plant actually decreased. This allowed the legalized medical market to stay competitive with the illicit market.

Conclusion

While these European nations have diverse approaches to cannabis policy and reforms, a majority of these models have yet to challenge the foothold of illicit sellers. Pilot programs that have emerged in several countries, like the Netherlands, have left many questioning what happens after the inevitable timetable of the programs is up.

Germany’s regulated medical cannabis market is the exception, offering access, affordability and federal legal oversight critical to challenge the illicit market without a determined end date beforehand. As nations globally consider their own approaches to cannabis reforms, Germany’s medical cannabis market can serve as a replicable framework.

Niklas Kouparanis is CEO and co-founder of Bloomwell Group and has served as a serial entrepreneur, medical cannabis pioneer, founder and growth activator of companies since 2017, all while shaping the future of the European cannabis industry. In 2020, Kouparanis co-founded Bloomwell Group, Europe’s largest telemedical cannabis companies. Bloomwell Group serves as a central hub for a new cannabis ecosystem that covers the entire value chain (except cultivation). Through innovation and the digitization of the entire treatment process, Bloomwell Group ensures an effective and reliable supply of medical cannabis to patients and contributes to the destigmatization of cannabis in medicine through data-based research. Today, the Bloomwell Group offers tens of thousands of cannabis patients, pharmacies, doctors and wholesalers a digital home each month.

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Photo courtesy of Chris Wallis // Side Pocket Images.