Medical cannabis in Austria: What market opportunities arise from the German boom

The most important points in brief: Germany imported more than 201 tons of medical cannabis in 2025 and developed into the largest market in Europe. Austria has around 9.2 million inhabitants and reaches about 11 percent of the German population size. Extrapolated, this results in a potential demand of 8 to 22 tons of medical cannabis per year. The market volume could be between 64 and 176 million euros annually. The pure VAT revenues for Austria could amount to between 6.4 and 17.6 million euros per year depending on market development. Domestic production could strengthen supply security, jobs, and research.

The European market for medical cannabis is in a historic growth phase. Especially Germany has developed into the largest market in Europe for medical cannabis since the liberalization of the Medical Cannabis Act (MedCanG). While around 72 tons were imported in 2024, import volumes increased to over 201 tons in 2025 according to current data. At the same time, the number of patients relying on cannabis on prescription, medical cannabis flowers, and cannabinoid-containing medicines is growing. This development raises a central question: What potential does this create for Austria? A look at population figures, international market developments, and medical needs shows that Austria could reach a market of several tons of cannabis flowers and other medical cannabis products per year in the medium term.

Germany as the European lead market for medical cannabis

Germany is now considered the European growth engine for medical cannabis. Current market data show:

• Approximately 72 tons were imported in 2024.
• Over 80 tons were already imported in the first half of 2025.
• Total imports in 2025 exceeded 201 tons.

Thus, the market has multiplied within a few years. Particularly remarkable is that Germany remains heavily dependent on imports despite its own production. Domestic production in 2024 was only about 2.6 tons. The majority of demand is covered by imports from Canada, Portugal, Denmark, North Macedonia, and other countries.

Why is the German market growing so strongly?

Several factors drive the demand for cannabis on prescription:

• Simplified access for patients
• Digitalization of prescription processes
• Growth of specialized telemedicine providers
• Higher societal acceptance
• Removal of bureaucratic hurdles
• Increasing demand for cannabis flowers as a therapy option

At the same time, medical cannabis is increasingly discussed as a possible alternative to opioids, sleeping aids, and other medications.

How many patients in Austria could use medical cannabis?

Austria has around 9.2 million inhabitants. Germany has about 84 million inhabitants. Austria thus reaches about 11 percent of the German population size. Applying the current German consumption figures to Austria results in the following market potential:

• Imports to Germany: 72 tons (2024), 201 tons (2025)
• Austria (extrapolated): approx. 8 tons (2024), approx. 22 tons (2025)

Even conservatively viewed, the Austrian market could move between 8 and 22 tons of medical cannabis per year in the long term.

Cannabis flowers from the pharmacy: demand is rising across Europe

The largest part of the European market growth currently falls on cannabis flowers produced under pharmaceutical standards. Patients often prefer:

• medical cannabis flowers
• standardized THC flowers
• CBD-dominant cannabis products (not medicines)
• cannabis extracts
• cannabinoid-containing medicines

In Germany, cannabis flowers from the pharmacy are now among the most frequently requested medical cannabis products. This development could also occur in Austria in the medium term.

The sales potential of medical cannabis in Austria

For economic consideration, the average sales price is decisive. Current market data from Germany show average pharmacy prices of about 7 to 9 euros per gram. An average value of 8 euros per gram is used for the calculation.

Scenario 1 – 8 tons annual demand

8,000 kilograms correspond to 8,000,000 grams. At 8 euros per gram, this results in a market volume of: 64 million euros per year

Scenario 2 – 13 tons annual demand

13,000 kilograms correspond to 13,000,000 grams. Market volume: 104 million euros per year

Scenario 3 – 22 tons annual demand

22,000 kilograms correspond to 22,000,000 grams. Market volume: 176 million euros per year

Thus, the Austrian market for medical cannabis, cannabis flowers, and related products could reach a volume between 64 and 176 million euros annually in the medium term.

What tax revenues could Austria generate?

In addition to medical care, a regulated market for medical cannabis could also bring significant fiscal advantages to Austria. Since medicines in Austria are generally subject to the reduced VAT rate of 10 percent, the following calculation applies:

Scenario 1 – 64 million euros market volume

VAT (10%): 6.4 million euros

Scenario 2 – 104 million euros market volume

VAT (10%): 10.4 million euros

Scenario 3 – 176 million euros market volume

VAT (10%): 17.6 million euros

Additionally, the following would arise:

1. corporate tax
2. income tax
3. social security contributions
4. municipal tax
5. value creation along the supply chain
6. investments in research and development

The actual macroeconomic benefit could therefore be significantly higher.

Supply security becomes a decisive factor

The German development shows not only opportunities but also challenges. The strong import dependence increasingly leads to discussions about supply chains, quality control, and supply security. Since a large part of European demand is covered by imports, transparency, traceability, and pharmaceutical quality standards are becoming increasingly important.

Why regional production is gaining importance

Domestic production of medical cannabis offers numerous advantages:

• Higher supply security
• Shorter supply chains
• Better quality control
• Higher value creation domestically
• New jobs in the pharmaceutical sector
• Expansion of research and development
• Strengthening Austria as a business location

Which diseases are treated with medical cannabis?

International studies and current therapy concepts deal, among other things, with the following areas of application:

• chronic pain
• multiple sclerosis
• sleep disorders
• neurological diseases
• oncological supportive therapies
• spasticity, epilepsy
• loss of appetite
• nausea as a result of chemotherapy

Research on medical cannabis is continuously evolving.

Austria could learn from Germany's experience

Germany impressively shows how quickly the demand for cannabis on prescription can rise. At the same time, the development makes clear the risks that arise when a market is almost exclusively dependent on imports. While Germany is currently expanding its own production, Austria could early on rely on a balanced mix of:

• controlled import
• domestic production
• research
• quality management
• digital traceability

This would allow for stable supply to patients in the long term.

The future of medical cannabis in Austria

The European markets are still in an early growth phase. If Austria takes similar regulatory steps as Germany and facilitates access to medical cannabis, cannabis flowers, cannabis on prescription, and other cannabinoid-containing therapies, a market with triple-digit million euro sales could emerge within a few years. This presents significant opportunities for politics, healthcare, research institutions, and companies.

Conclusion

Germany has developed into the largest market in Europe for medical cannabis in a very short time. With more than 201 tons of import volume in 2025, it impressively shows how dynamic the demand for cannabis flowers, medical cannabis, cannabis on prescription, and cannabis inhalers can grow. Applying this development to Austria results in a realistic market potential of 8 to 22 tons per year. This results in a possible market volume between 64 and 176 million euros annually as well as VAT revenues of up to 17.6 million euros per year. For politics, healthcare, and investors, the question is no longer whether medical cannabis Austria will become a relevant future market – but who will control the value creation in the future: international importers, domestic producers, or the state.

Sources:

Apotheken Umschau. (2025, February 27). Cannabis imports to Germany quadrupled in 2024. https://www.apotheken-umschau.de/news/cannabis-importe-nach-deutschland-im-jahr-2024-vervierfacht-1243205.html

Federal Institute for Drugs and Medical Devices (BfArM). (n.d.). FAQ: Medical Cannabis. https://www.bfarm.de

Deutsches Ärzteblatt. (2025, February 27). Massive increase in imports of medical cannabis. https://www.aerzteblatt.de/news/massiver-anstieg-bei-import-von-medizinischem-cannabis-61db79f5-3ae6-4d15-b21d-9f56c893222c

Cannamonitor. (2026, March 5). Germany imports 201 tonnes of medical cannabis in 2025 and crosses €1 billion in sales. https://cannamonitor.com

Cannabis Industry Data. (2025, August 6). Germany imported over 80 tonnes of cannabis in 2025 so far. https://www.cannabisindustrydata.com

International Cannabis Business Conference (ICBC). (2025). Germany imported over 201 tonnes of medical cannabis in 2025. https://internationalcbc.com

Natural Pharma. (2026, March 29). Germany surpasses 200 tonnes of medical cannabis imports in 2025. https://natpha.com

Reuters. (2025, October 8). Germany to restrict online cannabis sales to curb ballooning imports. https://www.reuters.com

AGES – Austrian Agency for Health and Food Safety. (2026). Cultivation of cannabis for the production of medicines (medical cannabis). https://www.ages.at/gesundheit

Statistics Austria. (2025). Health statistics and population data Austria. https://www.statistik.at

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