As 2023 comes to an finish, it is just pure to replicate on what occurred within the markets we cowl. However on the subject of hashish, the reply is “not much,” which received’t assist hashish startups which are already going through a difficult funding setting.
Specifically, 2023 wasn’t the 12 months that Germany legalized grownup leisure hashish use. That issues as a result of that’s not what the authorized hashish market as soon as anticipated, and at any time when there’s misalignment between actuality and what buyers anticipated, particularly when public firms boosted stated expectations, it’s not often excellent news. Or at the least, not for everybody.
“One trend to look out for in 2024 is consolidation,” stated cannabis-focused investor Matt Hawkins, a managing principal at specialised VC agency Entourage Impact Capital. “Companies have spent significant capital in preparation for a sizable commercial market in Germany. [As] the chances of that happening fade, companies might not be able to support their operations without joining forces.”
Let’s check out what to recollect from 2023 and what to anticipate in 2024, with assist from a brand-new international hashish report from market intelligence agency Prohibition Companions.
What didn’t occur
The expectations that the EU’s most populated nation would possibly legalize leisure marijuana didn’t come out of skinny air; this chance was very a lot on the desk ever since a site visitors mild coalition took energy in Germany in December 2021. However this coalition of social democrats, liberals and greens watered down its plans a lot since then that one has to marvel how nicely ready it was to beat authorized challenges that shouldn’t have come as a shock.