In a notable moment for the continent’s nascent medicinal cannabis industry, the European market has exceeded €2 billion in annual revenue for the first time, according to data released in April 2026 by industry analytics firm Prohibition Partners. The figure, which represents a 47% increase on the €1.36 billion recorded in 2025, shows rapid growth in patient access and commercial investment across key jurisdictions.
Germany Leads, UK and Poland Emerge as Powerhouses
Germany remains the undisputed engine of European growth, accounting for roughly 38% of total revenues. The country’s April 2024 rescheduling of cannabis from a narcotic to a standard prescription medicine has catalysed a flood of new patients and pharmacy orders. By May 2026, over 350,000 German patients are actively receiving reimbursed cannabis prescriptions, driving annual sales past €760 million.
However, the most striking developments are occurring in the UK and Poland. The UK market, valued at approximately €310 million in 2025, has surged to nearly €480 million in 2026, buoyed by a record number of private clinic registrations and the first wave of NHS commissioning pilots for chronic pain. Poland, meanwhile, has become the fastest-growing market in Central Europe, with revenues tripling to €140 million, following the government’s decision in late 2025 to expand the list of reimbursable conditions to include fibromyalgia and PTSD. Italy, whilst more modest at €210 million, has seen steady growth driven by its well-established network of hospital-based cannabis programmes.
Domestic Cultivation and Product Diversification
A pivotal shift is underway in supply chains. Whereas the European market was once almost entirely reliant on imports from Canada and Israel, domestic cultivation now accounts for 34% of total flower and extract sales, up from just 12% in 2023. Germany’s federal cannabis agency awarded 23 new domestic cultivation licences in March 2026, whilst UK-based growers, including those licensed under the Home Office’s expanded Schedule 1 framework, are now producing over 8 tonnes of high-THC flower annually. Poland’s first fully operational GMP-certified indoor facility came online in January, supplying both the domestic market and export partners in the Czech Republic.
Product diversification is also reshaping the market. While dried flower still commands 58% of sales by volume, full-spectrum oils and high-purity extracts now represent 31% of revenue, driven by clinician preference for standardised dosing. The launch of the first cannabis-derived oromucosal spray for neuropathic pain in France and Germany, approved by the European Medicines Agency in February 2026, has further broadened the treatment options available.
Insurance Reimbursement and the 2027 Outlook
Reimbursement trends are arguably the most critical driver of market maturation. In Germany, statutory health insurers now cover 83% of all cannabis prescriptions, up from 66% in 2024. The UK’s National Institute for Health and Care Excellence (NICE) is expected to publish final guidance on cannabis-based medicines for chronic pain in July 2026, which could trigger a major expansion of NHS prescribing. Poland’s National Health Fund reimbursed over 12,000 patient scripts in Q1 2026 alone, a 200% year-on-year increase.
Looking ahead to 2027, industry projections suggest the European market could reach €3.2 billion, contingent on regulatory reforms in France—where a national pilot for medical cannabis is due to conclude in December 2026—and the potential rescheduling of cannabis in the Netherlands. As domestic production scales and reimbursement frameworks solidify, the European medical cannabis sector is no longer a speculative frontier; it is a maturing pharmaceutical market with real clinical and economic weight.
