North American cannabis industry European expansion

North American cannabis companies are expanding into European markets, driven by regulatory shifts and strategic acquisitions. In the United States, an executive order to reclassify cannabis—moving it from the same category as heroin to being grouped with prescribed pain medications—has potentially reduced tax burdens and boosted the industry.

This regulatory environment has facilitated international growth. For example, the Canadian company Organigram acquired Germany’s Sanity Group for approximately $285 million, and the American firm Tilray acquired the British provider Lyphe.

Individual companies are also refining their business models. Canopy Growth has pivoted toward becoming a consumer cannabis business, focusing on medical expansion in Europe and strengthening its position in the Canadian recreational market. Following the acquisition of MTL Cannabis, Canopy Growth reported a 13% increase in net revenue for the first quarter ending June 30, alongside efforts to limit EBITDA losses through cost-cutting measures.