The German cannabis market is moving a bit more slowly than other international markets, but the change that is coming here is fundamental. In other words, it might be a bit slow to adopt the cutting edge, but Deutschland intends to fully integrate the plant into its medical infrastructure here in a way unseen and so far unattempted elsewhere.
That is major enough.
However, what this also portends is another movement that has so far begun to revolutionize an already revolutionary industry.
The extractions industry, in other words, the part of the vertical behind the edibles, vape, concentration and pharma developments already on the market, is only going to get a boost from Deutschland. And what that means, may well also pave a literal explosion in not only the medical market but a highly commercial global market for cannabinoids globally.
Beyond the stigma, Germans see the cannabis “pflantzen” as just that. A plant. It has chemical properties that can be extracted, recombined, cleaned and streamlined. There is a lot here to love if you are German. The German brain if not culture celebrates challenges like this.
The fact that such innovation might save a huge chunk on the bottom line of German healthcare is another big plus that drives this market. Not to mention the fact that one of the leading extractions companies on the planet (VTA) is already in existence here as one of the world’s top industrial machines in this field.
Why Does This Matter?
There are several reasons this will drive certain trends in a rapidly globalizing industry. The first reason is that the German market is primed for export. There are few successful industries here, starting with cars, that rely solely on German consumption. While cannabis as a plant might end up being a nationally regulated plant in every country, expertise in extraction is not always a domestic specialty.
In Germany, that is not the case.
For this reason, German technology is already globally exported. There is no reason to believe that its end product won’t be too.
The German Market Is Looking For Quantity Over Quality
It is also very clear that the German government does not want to deal with the vagaries of the plant when dealing with bottom line quantities. The current pending grow regulations for the country’s first regulated medical grow seem to favour producers who can deliver extracts of 100% cannabinoid purity rather than pure flower power. Even the most powerful cannabis plants are no more than 25-30% pure. The only thing that can deliver 100% cannapurity is an extract. That is one of the reasons that they have been so controversial in the past (in the US and Canada for example).
This market, however, seems to be setting itself up for precisely that.
For this reason, it is also likely that the German market will become the first federally regulated cannabis market in the world that is actively encouraging extract production.
It makes things cheaper, easier to account for and plan on, and ultimately gives the government the most bang for the buck.
When considering the impact of highly subsidized medication here (patients will be able to qualify for as much as 5 ounces of flower a month for about $12) this begins to make a difference in the bottom line.
Both the growth and extraction of the plant are high-value industries requiring precisely the kinds of workers Germany wants to maintain. There is absolutely every reason, therefore, for the guardians of such an economy to encourage the kind of high value to add that extraction represents. Especially for this plant right now.
When viewed within the German context and mindset, in other words, this is precisely the kind of make work proposition that creates jobs, while controlling the costs of medical care for everyone.
To the German mindset, there is no better economic growth and jobs paradigm so easily adaptable in any other industry right now.