Report: Europe represents a big opportunity for cannabis despite slow growth

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In effort to seek profitability, a new report suggests that Canadian cannabis producers are likely to scale back investments in Europe. The report, authored by Chicago-based research firm Brightfield Group and London-based consultancy Hanway Associates, suggests that the European cannabis market could reach more than $3 billion in sales within the next five years, but the current market remains limited and much smaller in scale. “Though they remain a tremendous force in Europe, forward momentum among (Canadian) liquidity providers will slow in the future, especially in newer or smaller markets,” the consultants said according to Reuters. Europe needs time to warm to cannabis, but hope is slow and steady wins the race Alyssa Milano, Will.i.am invest in leading European cannabis startup The CBD craze is about to roll over Europe Some Canadian producers, like Aurora Cannabis, have already established distribution networks in Europe, but earlier this year the Edmonton-based producer pulled out of Portugal, Spain, and Italy, and reduced its European workforce by one-quarter, Bloomberg reports . “We have not changed our view that this market represents a significant opportunity, despite slower-than-expected growth to date across many EU member states,” Don Perrott, Aurora’s managing director for the U.K. and Ireland, told Reuters . Earlier this year, Laurène Tran, executive director of ACTIVE Europe , a CBD trade association that works with companies across the European Union, said the European market is still under development and cannabis education and changing perceptions about the plant remains critical. “There’s no point in talking about finance because there is no market yet,” Tran said, adding that “the cannabis movement needs lawyers to help make clear how the market should be regulated and confirm their position.” The European regulations around adult-use cannabis, medical cannabis, and CBD products are inconsistent. Germany and Italy have emerged as…

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