Europe’s cannabis market is beginning to boom, and it’s making for a viable place for companies to start their business and cultivate their flower in favorable growing conditions.
Since Europe’s geographic location provides quality growing conditions, Europe has quickly become a sought-after destination for companies to implement business practices on farms and in stores. Big cannabis company names like Clever Leaves, CuraLeaf, and Aurora Cannabis all have major growing locations throughout Europe.
Because of these companies and the newcomers obtaining licenses daily, the European market is estimated to be valued at €403.4 million ($452.2 million) by the end of 2021. Not only this but it’s forecasted to grow at a compound annual growth rate of 67.4% from 2021 to reach €3.2 billion ($3.5 billion) by 2025.
The European cannabidiol (CBD) market is on track to expand by 400% over the next four years. But to enter the European cannabis market isn’t all sunshine and rainbows. Regulators require companies to abide by health and safety regulation standards to ensure the cannabis is of the highest quality and earns the European GMP certification. GMP certification ensures product consistency, testing, stability, and complete control according to standards.
Many companies are thriving in the European market, and one company, in particular, is the popular cannabis brand Clever Leaves. To shed more light on the situation, President of Clever Leaves, Andrés Fajardo, sat down with Benzinga for an exclusive interview.
Clever Leaves’ most successful cultivation facility is in Portugal and is approximately 9 million square feet of land and consists of roughly 260,000 square feet of greenhouse facilities. Fajardo explained that his company had created more than 100 jobs solely through its Portuguese operation, where he states that the company has invested roughly €25 million ($28 million) in Portugal.
Fajardo continues that Portugal has a “highly attractive micro-climate for large-scale, efficient production.” Clever Leaves’ license has allowed them to become one of Europe’s largest exporters of medical-grade cannabis. Not only has the company expanded production and research capabilities, but they’ve also successfully exported products from Portugal to “several countries,” adds Fajardo.
These countries include Australia, Israel, and the United Kingdom, as well as selling within Portugal. Fajardo notes that his company also recently became the first to “commercially export THC flower to the United States.”
Fajardo concludes that exporting THC flower to the United States “demonstrates our ability to comply with strict pharmaceutical standards” and meet strict regulatory guidelines.