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The Flourishing Cannabis Market in Europe
Cannabis Business Insights | Tuesday, February 21, 2023
Highest production standards and the global cannabis sector were made possible by Europe's adoption of actual GMP pharmaceutical standards and its designation of cannabis as a narcotic medicine.
FREMONT, CA: Europe has been pioneering the road for cannabis adoption with a real global and quality perspective. The adoption of real GMP pharmaceutical standards in Europe and the treatment of cannabis as a narcotic drug paved the path for the highest manufacturing standards and the international cannabis industry.
Doctors will be better able to choose and prescribe the appropriate products to treat patients if they have access to 42 different formulations and delivery methods in addition to spending money on market-authorized finished products. Patients in Europe will have greater access to cannabis as the EU regulations treating it as a pharmaceutical GMP product are adopted and confidence in cannabis herbal medicines will grow, securing their position in the pharmaceutical industry.
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The German patient market, which is currently the largest in Europe, has about 200,000 patients and has made cannabis treatment more accessible to them by allowing doctors to treat their patients as they see fit. The most common usage category today is for pain relief. Portugal, the top producer in Europe, helped to revive the pharmaceutical industry by establishing regulations and norms that attracted the biggest EU cannabis companies, and it is currently home to 21 active cannabis enterprises that are registered with the government.
The market spreads into Europe to many more nations, including Czechia, Poland, Malta, Luxembourg, and Austria, to name a few. Denmark is the second-largest producer, while Italy has the second-largest patient base. However, Europe also acts as a centre for imports for nations like Canada (the continent's top exporter right now), South Africa, Lesotho, Uruguay, and Columbia. More and more nations are implementing access for their citizens: France is getting ready to expand its current trials as well as Spain is anticipated to propose laws in the next months.
There are currently 1300 cannabis clinical trials underway worldwide, with about 35% of them taking place in Europe. These trials will likely yield some winners that big pharma will eventually purchase. Cannabis, however, also has a place in the 150 billion USD herbal medicine business as well as the OTC markets, sometimes known as the adult use or recreational markets. Cannabis already provides for the traditional AIM pharma, herbal remedies, and OTC to increase the primary foundations of the pharmaceutical sector.
Despite the fact that there is more research currently, the illegality of clinical trials inhibited greater investment. The sector has also been hampered by politics and rules.
By limiting their discretion for their patients, some nations, including the UK, have made it challenging for doctors to recommend cannabis. And the UN has made matters worse by refusing to reschedule cannabis under the 1971 Convention, which has severely constrained the world market.
There is now a minority that does not agree that people should have access to cannabis to treat a wide range of conditions, including epilepsy, MS, cancer-related illnesses, pain, sleep, stress, and anxiety, among many others, either on their own or with a doctor's help. The major pharmaceutical companies are already monitoring the developments on each of the three distribution pillars. And because they are receiving safer relief, patients are pleased. There are many reasons to celebrate the legalisation of cannabis in the EU, but there is still more work to be done before high-quality products can be produced for the entire world.
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With federal cannabis legalization in uncertainty and individual states authorizing cannabis sales and production, professionals such as CPAs find themselves in a difficult position. On the one side, cannabis businesses require accounting support to remain compliant and maintain their licenses.The truth is that thousands of businesses are springing up all over the place, and there aren't enough qualified accountants to go around.
The primary misconceptions around offering accounting services to the cannabis and CBD/hemp sectors are listed below:
This is the "all-cash" industry. Actually, credit unions and banks serve cannabis businesses in various states. Businesses generate a large amount of cash. Thus, cash controls and processes are crucial for preventing fraud and theft. Furthermore, many cannabis business owners possess two to ten non-cannabis firms, such as a real estate or equipment company, which have better access to finance.
The federal government is now reviewing the SAFE Banking Act, and cannabis businesses should soon have simpler access to banking and merchant services.
Cannabis must be a terrible "niche" for CPAs: There are currently very few CPAs in the niche, so there is a huge opportunity. Many surveys have shown that solo CPAs suffer the most when obtaining exceptional clients, and if that's the case for specific companies, this could be their opportunity to discover high-paying clients effortlessly. Many people will spend in the six figures for world-class accounting, tax, and CFO services.
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