Cannabis: UK, the largest producer…

Benefits have been seen in other countries, placing the UK behind this progressive trend while pharmaceutical companies continue to use strategies to expand their sales in the UK.

Some countries, like Malta, have adopted non-commercial models where cannabis is grown by social clubs rather than for-profit businesses.

Cannabis Growing in the UK and Profit from Exporting

Overview of Cannabis Production in the UK

The United Kingdom has emerged as a significant player in the global cannabis industry, particularly in the production and export of legal cannabis for medical and scientific purposes. Despite the domestic legal restrictions on cannabis, the UK has become the world’s largest producer and exporter of legal cannabis. This paradox highlights the complex regulatory landscape and the economic opportunities that exist within the industry.

Historical Context

Cannabis has a long history in the UK, dating back to the 10th century, where it was primarily grown for its fiber, which was used to make rope, fishing nets, and canvas. The plant’s importance to the British Navy led to mandatory cultivation quotas during the reigns of Henry VIII and Elizabeth I. However, cannabis was classified as a Class B drug under the Misuse of Drugs Act 1971, making it illegal to possess, grow, distribute, or sell without a license.

Current Legal Framework

The production and cultivation of cannabis in the UK are tightly regulated by the Home Office and the Medicines and Healthcare products Regulatory Agency (MHRA). Companies must obtain a Home Office license to grow cannabis, which is granted for specific purposes such as medical research and the production of medicinal products. The UK’s legal cannabis industry is primarily focused on the production of low-THC, high-CBD strains for medical use.

Major Players in the UK Cannabis Industry

Several companies are at the forefront of the UK’s legal cannabis industry:

• GW Pharmaceuticals: One of the leading companies in the UK, GW Pharmaceuticals has been producing cannabis-based medicines since the 1990s. Their flagship products include Epidiolex, a pure oral CBD solution for treating rare and severe forms of epilepsy, and Sativex, a whole-plant cannabis spray for treating spasticity due to multiple sclerosis (MS).
• Jazz Pharmaceuticals: Formerly known as GW Pharma, Jazz Pharmaceuticals continues to develop and manufacture cannabis-based medicines in the UK.
• Target Healthcare: This company manufactures Bedrocan oils in Glasgow and is a key player in the domestic market.
• Rokshaw Laboratories: Taken over by Curaleaf, the world’s largest cannabis company, Rokshaw Laboratories is involved in the production and distribution of medical cannabis products.
• Dalgety: A newer entrant, Dalgety has invested heavily in a state-of-the-art facility in the UK, securing an EU-GMP license for the cultivation, manufacture, and supply of medical cannabis.

Economic Impact and Export Profits

The UK’s position as the world’s largest producer and exporter of legal cannabis has significant economic implications:

• Revenue Generation: The UK’s legal cannabis market is forecasted to reach US$459.80 million in 2025, with an annual growth rate (CAGR 2025-2029) of 1.34%, leading to a market volume of US$485.00 million by 2029. The economic benefits of legalizing cannabis are substantial, with potential tax revenues and job creation being key drivers.
• Job Creation: The High Returns: The Economic Benefits of UK Cannabis Legalisation report predicts that a mature regulated market could capture up to 80% of the current illegal cannabis market within five years, creating up to 15,500 full-time jobs across cultivation, manufacturing, retail, and ancillary services.
• Export Profits: The UK exported 2.1 tonnes of legal cannabis in 2016, accounting for 67.7% of the world total. This export market is expected to grow, with companies like GW Pharmaceuticals and Dalgety leading the charge. The global medicinal cannabis market is projected to be worth USD 62.6 billion by 2024, representing a significant opportunity for UK producers.

Challenges and Controversies

Despite the economic benefits, the UK’s cannabis industry faces several challenges:

• Regulatory Hurdles: The UK’s regulatory framework is complex and can be a barrier to entry for new companies. The process of obtaining licenses and meeting stringent quality standards can be time-consuming and costly.
• Domestic Market Restrictions: While the UK is a major exporter of legal cannabis, the domestic market remains limited. As of 2025, 100% of the medicinal cannabis products prescribed in the UK are imported, highlighting the disconnect between domestic production and consumption.
• Public Perception and Policy: Public support for cannabis reform is growing, but the UK government has been cautious in expanding access to medical cannabis. The debate over the therapeutic value of cannabis continues, with some advocates arguing that the current restrictions are unethical and deny patients access to effective treatments.

Future Prospects

The future of the UK’s cannabis industry is promising, with several factors driving growth:

• Global Market Expansion: The global legal cannabis market is expected to grow at a compound annual growth rate (CAGR) of 25.5% from 2022 to 2030. The UK’s strong export performance positions it well to capitalize on this growth.
• Policy Changes: There is increasing pressure for the UK to liberalize its cannabis laws, both for medical and potentially recreational use. Polls show that a majority of the public supports legislation, and the economic arguments for regulation are becoming more influential.
• Investment Opportunities: The UK’s cannabis industry is attracting significant investment from both domestic and international investors. Companies like Dalgety and Rokshaw Laboratories are expanding their operations, indicating confidence in the market’s potential.

Summary Table

Aspect	Details
Historical Context	Cannabis has been grown in the UK since the 10th century, primarily for fiber. It was classified as a Class B drug in 1971.
Legal Framework	Production and cultivation require Home Office and MHRA licenses. Focus is on low-THC, high-CBD strains for medical use.
Major Players	GW Pharmaceuticals, Jazz Pharmaceuticals, Target Healthcare, Rokshaw Laboratories, Dalgety.
Economic Impact	Forecasted market size of US$459.80 million in 2025, with potential for 15,500 jobs.
Export Profits	UK exported 2.1 tonnes of legal cannabis in 2016, accounting for 67.7% of the world total. Global market projected to be worth USD 62.6 billion by 2024.
Challenges	Complex regulatory framework, limited domestic market, ongoing debates over therapeutic value.
Future Prospects	Global market expansion, potential policy changes, increasing investment.

This comprehensive overview highlights the UK’s significant role in the global cannabis industry, the economic benefits of legal cannabis production, and the challenges and future prospects for the sector.

Objections to cannabis sales in the UK stem from various perspectives, including health concerns, social impacts, and legal considerations:

• Health Concerns: Critics argue that cannabis can have detrimental effects on mental health, particularly among young people. It is claimed that cannabis use can lead to addiction, depression, anxiety, and even psychosis. Some opponents highlight the potential for long-term cognitive impairment and the risk of developing more severe mental health disorders
• Social Impacts: There are concerns that decriminalizing or legalizing cannabis could increase its availability and use, potentially leading to higher rates of anti-social behavior and community disruption. Some argue that cannabis can act as a gateway drug, encouraging the use of more harmful substances
• Legal and Enforcement Issues: Opponents of cannabis legalization worry that it could undermine existing drug laws and the authority of law enforcement. They argue that decriminalization might send the wrong message about the risks associated with drug use, potentially leading to increased consumption and related social problems. Additionally, there are concerns about the practical challenges of regulating a legal cannabis market, including issues of quality control and preventing black market activity
• Public Safety: Some critics point out that the use of cannabis can impair judgment and motor skills, posing risks in contexts such as driving and workplace safety. They argue that legalizing cannabis could lead to an increase in accidents and public safety incidents
• Moral and Ethical Considerations: Some individuals and groups oppose cannabis sales on moral or ethical grounds, viewing it as a harmful and unnecessary vice that should not be promoted or condoned by society

Arguments against cannabis legalization often cite concerns about public health, increased usage, and potential negative social impacts. However, experiences from countries that have legalized cannabis provide insights into how these concerns have played out in practice:

Public Health Concerns

• Mental Health and Cognitive Function: Critics argue that cannabis use can lead to mental health issues and cognitive decline, particularly in adolescents. However, studies from countries like Canada and Uruguay have not shown a significant increase in mental health disorders following legalization. Instead, these countries have implemented robust public health campaigns and regulations to mitigate risks. For example, Canada has seen a shift towards safer consumption practices, with more users opting for less potent forms of cannabis and avoiding smoking
• Respiratory Issues: Opponents point to the potential respiratory problems associated with smoking cannabis. While this remains a valid concern, the legalization of cannabis has led to the development of alternative consumption methods, such as edibles and vaporizers, which are less harmful to the respiratory system. In the U.S., states like Colorado have seen a rise in the use of these safer alternatives

Increased Usage

• Youth Consumption: One of the primary fears is that legalization will lead to increased cannabis use among young people. Data from Canada and the U.S. show mixed results, but overall, youth consumption rates have not significantly increased. In fact, some studies suggest that youth consumption has remained stable or even decreased in some regions following legalization. This is attributed to better regulation and education efforts
• Overall Consumption: While there has been an increase in overall cannabis use in some legalized jurisdictions, this has been accompanied by a reduction in the use of more harmful substances, such as opioids. For example, states in the U.S. that have legalized cannabis have seen a decrease in opioid-related deaths

Social Impacts

• Crime and Black Market: Critics argue that legalization will not eliminate the black market and may even lead to increased crime. However, countries like Canada and Uruguay have seen a reduction in the illegal cannabis market. In Canada, the legal market has grown, and the proportion of users purchasing from illegal sources has decreased from 76% in 2018 to 55% in 2020
• Tax Revenue and Economic Benefits: Legalization has generated significant tax revenue, which can be reinvested in public health and education. For instance, in Colorado, tax revenues from cannabis sales reached $387 million in 2020, which has been used to fund various public services

Regulatory Frameworks

• Non-Commercial Models: Some countries, like Malta, have adopted non-commercial models where cannabis is grown by social clubs rather than for-profit businesses. This approach aims to minimize commercial interests and focus on public health. While the evidence for the success of these models is still limited, they offer an alternative to the highly commercialized markets seen in the U.S. and Canada

Briefly

While the debate over cannabis legalization continues, the experiences of countries that have already legalized cannabis provide valuable lessons. These countries have shown that with proper regulation, public health campaigns, and a focus on reducing harm, many of the concerns raised by opponents can be effectively addressed.

The potential legalization of cannabis in the UK could have significant impacts on various sectors and companies, particularly those in the pharmaceutical and law enforcement industries. Here are some key points:

• Pharmaceutical Companies: Companies that currently produce and sell medications for conditions that could be treated with cannabis might see a decline in profits. For example, if cannabis becomes a widely accepted alternative for pain management or anti-inflammatory treatments, traditional pharmaceuticals could lose market share.
• Law Enforcement and Criminal Justice System: The UK government currently spends over £1 billion annually on resources and services devoted to the cannabis industry, including seizing illegal cannabis and prosecuting those involved in weed farms. Legalization could lead to significant savings in these areas, potentially reducing the budgets of law enforcement agencies and related services. This could also affect private companies that provide services to the criminal justice system, such as security firms and legal aid providers. The report “High Returns: The Economic Benefits of UK Cannabis Legalisation” estimates that legalizing cannabis could save up to £300 million across the Criminal Justice system
• Tobacco Companies: While not directly mentioned in the context, tobacco companies might also face challenges if cannabis becomes a legal and socially acceptable alternative. The tobacco industry in the UK is significant, with 7.4 million tobacco smokers, and a shift towards cannabis could impact their market. However, the exact current profits and predicted impact on these companies are not currently available for publication.
• Healthcare Providers: The NHS and private healthcare providers might see a shift in patient treatment preferences. While the NHS has been criticized for not funding medical cannabis for children with severe epilepsy, leading families to pay privately, the legalization of cannabis could lead to more widespread acceptance and use of cannabis-based treatments. This could affect the demand for traditional pharmaceuticals and the overall healthcare landscape.
• Alcohol Industry: Similar to the tobacco industry, the alcohol industry might face competition from legal cannabis. However, the specific current profits and predicted impact on these companies are not detailed in the provided context.

While the context provides insights into the potential economic benefits of cannabis legalization, it does not specify the current profits of companies that might be threatened by these changes. The primary focus is on the economic benefits, such as job creation, tax revenue, and savings in the criminal justice system

In the UK, medical cannabis can be prescribed as an alternative to certain medications, particularly when conventional treatments have not been effective. Here are some examples of medications that may be replaced by medical cannabis:

• Nabilone: This is a synthetic cannabinoid that can be prescribed to adults to help relieve nausea and vomiting caused by chemotherapy, but only when other treatments have not worked or are not suitable. Nabilone acts similarly to THC (tetrahydrocannabinol), the chemical in cannabis that causes a high.
• Opioids: For chronic pain management, medical cannabis may be considered as an alternative to opioids, which can have significant side effects and carry a risk of dependency. While the evidence for cannabis in pain relief is not yet strong enough to recommend it widely, it may be prescribed in some cases as part of a clinical trial or when other treatments have failed.
• Benzodiazepines and Other Anti-Spasm Medications: For patients with multiple sclerosis (MS) who experience muscle stiffness and spasms, medical cannabis, specifically nabiximols (Sativex), can be prescribed when other treatments have not been effective. Sativex is a cannabis-based medicine that is sprayed into the mouth and is licensed for use in the UK.
• Anti-Epileptic Drugs: For patients with rare forms of epilepsy, such as Lennox-Gastaut syndrome and Dravet syndrome, medical cannabis, particularly Epidyolex (a highly purified liquid containing CBD), can be prescribed by a specialist. Epidyolex is approved for use in the UK and has been shown to reduce seizure frequency and severity in these conditions.

It’s important to note that medical cannabis is only prescribed by specialist doctors and is typically considered after other treatments have been tried and found ineffective. The decision to prescribe medical cannabis is made on a case-by-case basis, taking into account the patient’s specific condition and medical history.