Sustainable Business Models arising from the expected Legalization of Cannabis in Germany

Nowadays, almost every country in the world classifies cannabis as illegal, nevertheless it is still the most consumed illicit substance in the world. Up until 2019, only two countries worldwide have legalized cannabis completely at national level. In more than 25 countries, cannabis has a partial legal and social accepted status. While medicinal cannabis was legalized in Germany in 2017, recreational cannabis remains illegal in Germany as per today. The very conservative estimated market value for the German illegal cannabis market is approx. 2.3 billion Euros. Assuming that legalization of recreational cannabis will capitalize the entire or even a major part of the black market of cannabis, the German government would benefit from significant additional tax revenue. From a political point of view, today there is still a vehement controversy about the legalization of cannabis in Germany. However, experts predict legalization of recreational cannabis in several European countries within the next three to ten years. Under the assumption that cannabis will be legalized in Germany, sustainable business models were defined within the context of this assignment. As part of this exploratory study, two experts of the cannabis industry were interviewed. On the base of a qualitative content analysis as well as extensive research sustainable business models were defined and evaluated. As a result of the study, a comprehensive recommendation of action was developed