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How Big Is The Czech Republic’s Cannabis Market Potential?

Political leaders in the Czech Republic have previously indicated that they would pursue the passage of a national adult-use cannabis legalization measure once Germany had passed its own adult-use legalization measure. Germany implemented the first provisions of its national legalization measure on April 1, 2024.

How long it will take the Czech Republic to pass a legalization measure is unclear at this time, however, lawmakers previously announced details of what the country’s legalization model may involve. In April 2023, lawmakers announced plans for a national consumer registry. Registration would permit consumers to purchase up to 5 grams a day from licensed retailers under the plan.

An official draft law was unveiled in January 2024. Per original reporting by Expats CZ at the time, the legalization draft law included rules for legal cultivation, noncommercial cannabis clubs, and exports. Some of what is being proposed in the Czech Republic is similar to components of legalization models already adopted in Malta, Luxembourg, and Germany.

In October 2022, an expert study was commissioned by the Czech Republic Pirate Party and it found that a taxed and regulated cannabis industry would generate “tax revenue from EUR 26.5 million to EUR 73 million per year.”

According to an analysis by Euromonitor International in April 2023, in regards to the Czech Republic, “The illicit cannabis market was estimated to be worth CZK14.5 billion or USD630 million in 2022.”

“Medical cannabis is legal for sale through pharmacies by prescription since 2013. Since 2020, state medical insurance covers 90% of treatment with cannabis for up to 30g per month. This makes medical cannabis more affordable for patients and drives category growth. Local producer Elkoplast CZ was the only category player until the end of 2022. Medical cannabis’s total value was CZK9 million in 2022 and this is expected to triple by 2027.” Euromonitor stated as part of its analysis. “CBD sales reached CZK100 million in 2022 and are expected to almost double in the next five years.”

Below is a breakdown of the CBD market by product type in the Czech Republic (topicals, tinctures, flower, and edibles):

cbd market by product czech republic 2019 to 2027

According to data from Statista:

  • In Czechia, the Medical Cannabis market is forecasted to generate a revenue of US$2.08m in 2024
  • It is expected to experience an annual growth rate (CAGR 2024-2029) of 4.72%, leading to a market volume of US$2.62m by 2029
  • In terms of per capita revenue, in Czechia is estimated to generate US$1.12k per person in 2024

Ultimately, the Czech Republic’s market potential will be directly determined by what legal cannabis industry model it adopts. As has been determined via the legalization process in Germany, the European Union will not permit nationwide adult-use cannabis sales among its members. However, there is a number of industry components that the Czech Republic can adopt, such as noncommercial cannabis clubs and regional pilot programs.