International Cannabis Policy Shifts: What They Mean for Global Markets
The international cannabis policy has been shifting significantly, from strict regulations to medical legalization, decriminalization, and regulated non-medical cannabis use. This shift is caused by changing social norms and increasing recognition of regulated cannabis use, and changing evidence of cannabis therapeutic benefits.
Understanding these changing cannabis policy shifts is crucial for entrepreneurs, policymakers, and other stakeholders. Continue reading to explore the recent cannabis policy shifts across different regions of the globe.
Global Cannabis Legalization Trends
Global Cannabis Market: UNODC & WHO
According to the World Drug Report 2025, cannabis is the most used drug among the population, with almost 244 million users in 2023. Around 22.6 million people around the world are dealing with cannabis dependency. In the media briefing, the report emphasizes cannabis legalization and its impact on public health and the global cannabis market.
In the historic voting in 2020, the UN Commission on Narcotic Drugs (CND) removed cannabis and cannabis resin from Schedule IV of the 1961 Single Convention on Narcotic Drugs. In the updated records, the proposal for rescheduling cannabis under federal law is proceeding.
Cannabis Legalization Status
United States:
At the national level, cannabis is categorized as a Schedule I substance under federal law. Across the states, 24 states and Washington, D.C have legalized adult-use cannabis. The medical use of cannabis is legal in 42 states and the District of Columbia. Some states, including South Carolina, Idaho, Kansas, and Wyoming, have fully restricted the use of cannabis either for medical or recreational purposes.
International Countries:
Thailand, Canada, and Uruguay have fully legalized the recreational use of cannabis. Overall, 50 countries have legalized the medical or recreational use of cannabis, including Mexico, the United Kingdom, Australia, Colombia, Israel, New Zealand, Germany, and Argentina. In many countries, including Portugal and some parts of Africa, they have decriminalized the possession of a small amount of cannabis. In Asia and Africa (Thailand and South Africa excluded), cannabis is strictly prohibited and illegal.
North America: Cannabis Market Stabilization
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United States
During Joe Biden’s administration, the DEA proposed a rule to move cannabis from Schedule I to Schedule III substance and awaits a final decision by early 2026. The SAFER Banking Act of 2025 is not a law, but it has significant relevance to the cannabis industry.
This act protects legitimate cannabis businesses from penalization by federal regulators. Legal cannabis businesses can move immense cash into the banking system to make transactions more transparent. This act allows cannabis businesses to enjoy extended services, including commercial loans and payroll services.
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Canada
In 2025, Canada underwent several policy shifts from market supply to pricing challenges to regulatory adjustments. The key focus areas to change in the Regulatory Impact Analysis Statement include the cannabis tracking system order, industrial hemp regulation, Schedule 2 to the cannabis Act, and national health products regulations.
The European Picture: Cannabis Policy Shifts
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Germany
As of April 01, 2025, Germany has removed medical cannabis from the list. Moreover, medical cannabis is now classified as a prescription-only product under the Medical Cannabis Act (MedCanG). This shift led to the emergence of an online market for medical cannabis. Germany has allowed adult-use cannabis regulated by Germany’s Cannabis Control Bill (CanG). The CanG regulates the adult-use cannabis under pillar one, focusing on possession, consumption, and cultivation.
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Netherlands
In the Netherlands, a Controlled Cannabis Supply Chain Experiment (CCSC) was launched to address the ‘back door’ cannabis supply chain issue of coffeeshops. By April 2025, only 10 municipalities’ coffee shops were permitted to sell quality-control, regulated, and tracked cannabis products.
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Czech Republic
The president, Petr Pavel, has signed the cannabis legalization measure for adult-use cannabis. This measure will allow the consumption, cultivation, and possession of cannabis by adults over 21 years of age, with effect from January 01, 2026.
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Slovenia
Recently, Slovenia has legalized the medical use of cannabis. Slovenia’s new Medical and Scientific Cannabis Act came into effect on August 20, 2025, allowing physicians to prescribe cannabis for medical conditions based on their judgment.
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Switzerland
In February 2025, the National Council’s Social Security & Health Committee supported a preliminary draft bill for adult-use cannabis legalization. With full commercial cannabis legalization in 2025, Switzerland will position itself to launch Europe’s first nationwide adult-use cannabis market in 2026.
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France
In France, medical cannabis serves only a small number of patients because of the cautious adoption. According to a report titled ‘State of the Medical Cannabis Industry in France-2025’, France only allowed the use of certain medical cannabis products in combination with the Nation’s medical cannabis pilot program.
Asia-Pacific: Strict Enforcement
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Thailand
Thailand has experienced a significant shift in the cannabis regulations in recent years. Passing through various phases of decriminalization, cannabis is now recriminalized with effect from June 26, 2025. The legalization of cannabis is strictly limited to medical-use cannabis only, with a valid medical prescription from a licensed practitioner, with a validity of 30 days.
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Australia
Australia and South Africa are in a state of significant cannabis policy shifts, discussing broader legalization measures for medical cannabis. In Australia, patients have access to medicinal cannabis with the prescription of doctors through the Special Access Scheme (SAS) and Authorized Prescriber (AP) pathway. However, the issue of legalizing recreational cannabis is still under debate.
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Japan
Japan has recognized the therapeutic potential of cannabis and legalized cannabis-derived medicines. The recent amendments in the Cannabis Control Act and Narcotics and Psychotropics Control Act open up opportunities for the cannabis business, with strict regulations on THC limits in CBD products. The recreational use is criminalized with strict penalties.
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South Africa
Africa is one of the Asian regions where cannabis is strictly prohibited, except for South Africa, which partially legalized recreational cannabis use. The Cannabis for Private Purpose Act, 2024, signed by President Cyril Ramaphosa, respects the adult-use cannabis and adults’ privacy rights for cannabis consumption and possession.
Impacts on the Global Cannabis Market
The international cannabis policy shifts significantly impact the global cannabis market. The global cannabis market is expanding, with expected growth to $102.10 billion by 2030 at a CAGR of 18%. Besides the increasing impacts on the Global cannabis market, these policy reforms are reshaping the agriculture, retail, Global trade, and medical research sectors.
Research organizations, including Grand View Research and BDSA, will experience multi-billion-dollar growth in the upcoming years. Cultivation and export hubs are emerging in countries with a favorable climate and low production costs.
Future Predictions: Policy Ripple Effects
Many regions, like the Czech Republic and the United States, are looking to shift to comprehensive cannabis reforms to improve public health. In the future, cannabis can formally be integrated into the international trade system with proper quality control and import/export standards.
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