The Israeli medical cannabis market, characterised in recent years by rapid patient growth and bold regulatory reforms, now faces significant challenges due to a situation of oversupply, allegedly caused by cheap imports from Canada. Following an investigation that revealed substantial dumping rates, the Israeli Commissioner on Trade Leavies has recommended to impose tariffs on Canadian cannabis aimed at protecting local producers.
This article explores the background of the Israeli medical cannabis market, the details of the investigation, the economic implications of the tariffs, and the strategic adaptations by both local and international players. Additionally, it provides a detailed analysis of supply-demand dynamics, market data, and the potential future of the global cannabis trade in the Israeli context.
Medical Cannabis in Israel: Past Growth and Regulatory Reforms
The Israeli medical cannabis market has experienced significant growth in the last few years, driven by liberal regulatory reforms and increasing patient acceptance. From January 2019 to January 2024, patient numbers grew from approximately 32,000 to over 140,000.
This impressive market development was prompted by reforms enacted in 2019 which liberalised the market, allowing patients to access products at the pharmacy instead of directly from the producers, as well as simplifying the process for obtaining medical cannabis for a wide range of qualifying conditions. This resulted in a surge in patient enrolment, making medical cannabis more accessible through the healthcare system.
The reforms also allowed free floating prices and enabled international trade, seeking to boost the domestic sector by exporting cannabis to international demand markets. However, long coveted hopes of seeing Israel as a global cannabis export powerhouse did not materialise, as only two exporters (Panaxia and BOL Pharma) traded a limited amount of products to Australia, Germany and France in the years that followed: 177kg were exported in 2020, 664kg in 2021, 662kg in 2022 and 525kg in 2023.
Read full article
The Israeli Medical Cannabis Market: Navigating Tariffs, Trade Wars, and Market Shifts
