Business

Portugal: Investments in cannabis have already exceeded 100 million euros

Published

3 years ago

September 26, 2022

Reading Time: 3 minutes

Direct investment in tangible assets made in the Portuguese cannabis ecosystem exceeded 100 million euros in the period between 2017 and 2021, excluding mergers and acquisitions. The data are part of a study recently published by glowside, a strategy and corporate finance company based in Portugal, and reveals that the most common investments in our country were made in cultivation and manufacturing, ranging from 10 to 20 million euros. Total legal cannabis sales worldwide are predicted to exceed €48 billion by 2025 and adult (or recreational) use will be the main driver of global markets.

“Is there a new elephant in the room? – Summary Survey of the Cannabis Ecosystem” was published this month by Glowside, with a special focus on the Portuguese market. The study analyzed 22 companies that work exclusively in cannabis-related activities, from Research and Development (R&D) to the cultivation and manufacture of cannabis derivatives. In addition to the 100 million in the last 5 years, the investments already announced planned for the coming years add up to an additional 60 million euros, for which companies will necessarily seek capital from third parties, says the document.

“With 97 companies with ongoing licensing applications in the infarmed, it is more likely that the real values of the investments made and to be carried out are much higher than those presented”, says the Glowside document.

The cannabis ecosystem in Portugal, according to the Glowside study

More investment in science and R&D is needed
Portugal is in a privileged position when it comes to supplying the European market, but it needs to take a step forward and advance towards science, taking advantage of its excellent skills for the pharmaceutical industry, as well as the recently developed capacities in the area of biotechnology and areas analytics. “To be successful, we need to become a center of scientific knowledge in this area, filling a gap that still exists in the market”, warns the study.

The medicinal use of cannabis has been under discussion for several years and many countries, including Portugal, have already regulated its use. There are many opportunities in this sector, but as with any market, money is critical to sustaining the investment during the period when the market matures and rules and limits are set. Many investments took place in Portugal attracted by the friendliness of the regulatory framework, low labor costs and availability of arable land. Naturally, the crop market has been the most developed and particularly populated with outdoor and greenhouse plantations, but it is also necessary to invest in science.

Legalization of adult use will boost markets

Cannabis for adult (or recreational) use will be the main driver of the global market, says the analysis by Glowside. If recreational cannabis for adult use does not advance in Germany, followed by the rest of Europe, many of the players in the market will not thrive as many of them have not been able to obtain funding to develop a sustainable business model to supply cannabis for medical use.

Contrary to what was observed in North America, where most of the investment was directed towards the adult use segment, most of the investment in Europe is still being allocated to CBD well-being, as recreational use by adults is still not legal in most European countries. However, growth expectations for medical cannabis are over 20% in the coming years. Investment in the pharmaceutical sector is also expected to grow further, bringing more cannabis-based medicines to the market.

Glowside Management is a strategy and corporate finance company based in Portugal. Founded in 2017 by Ricardo Sousa Valles and Paula Oliveira Marto, it has more than 30 years of experience in consulting companies. Glowside is dedicated to business and financial consultancy for CEOs and shareholders, operating mainly in the Pharma & Biotechnology, Real Estate & Construction, Energy and Sustainability sectors.

Read the full study here.

Glowside Cannabis Report 2022

____________________________________________________________________________________________________

[Disclaimer: Please note that this text was originally written in Portuguese and is translated into English and other languages using an automatic translator. Some words may differ from the original and typos or errors may occur in other languages.]

____________________________________________________________________________________________________

What do you do with €3 a month? Become one of our Patrons! If you believe that independent cannabis journalism is necessary, subscribe to one of the levels of our Patreon account and you will have access to unique gifts and exclusive content. If there are many of us, we can make a difference with little!

Laura Ramos

With a degree in Journalism from the University of Coimbra, Laura Ramos has a postgraduate degree in Photography and has been a Journalist since 1998. Winner of the Business of Cannabis Awards in the category "Journalist of the Year 2024", Laura was a correspondent for Jornal de Notícias in Rome, Italy, and Press Officer in the Office of the Minister of Education of the 21st Portuguese Government. She has an international certification in Permaculture (PDC) and created the street-art photography archive “Say What? Lisbon” @saywhatlisbon. Co-founder and Editor of CannaReporter® and coordinator of PTMC - Portugal Medical Cannabis, Laura directed the documentary “Pacientes” and was part of the steering group of the first Postgraduate Course in GxP's for Medicinal Cannabis in Portugal, in partnership with the Military Laboratory and the Faculty of Pharmacy of the University of Lisbon.