As US cannabis reform stalls under federal deadlock, leading American cannabis companies are shifting their focus to Europe – and Malta is among the first-mover nations capturing international attention, Forbes reports.

In its latest deep-dive, Forbes identifies Malta and Luxembourg as the EU countries with operational adult-use cannabis frameworks, while countries like Germany, the Netherlands and Switzerland continue to expand medical or pilot recreational schemes. Malta’s fully legal, non-profit adult-use model positions it as a regulatory pioneer in a market projected to exceed $50 billion in value over the coming decade.

Although the European cannabis market is still emerging – expected to reach just $1.2 billion in annual sales this year – forecasts from Prohibition Partners and Whitney Economics suggest rapid expansion to over $6 billion within a decade, with countries like Germany leading the charge. Germany alone is expected to generate nearly $1 billion in sales by end 2025, after legalising limited recreational use earlier this year.

UA firms like Curaleaf, Cookies, and Active are already ramping up operations across the continent. Curaleaf’s European division, now branded as Curaleaf International following its $286 million acquisition of UK-based Emmac Life Sciences, saw 72 per cent growth in 2024, reaching $105 million in international revenue.

Meanwhile, private equity firms like Artemis Growth Partners are doubling down on Europe, shifting focus away from the saturated US market. Artemis cofounder Will Muecke told Forbes they’re committing up to $50 million in new EU investments, having already backed extraction companies like Denmark-based Valcon.

What makes Europe – and Malta specifically – attractive is not just the regulatory progress, but the ability to grow, manufacture and export cannabis across borders, a major limitation in the fragmented US market. Malta’s EU-GMP standards, Government oversight, and clear guidelines for non-profit cannabis associations offer a stable framework in an industry that’s otherwise navigating legal grey zones.

Despite the optimism, Forbes cautions that Europe is still in early days – with some analysts warning of inflated expectations like those seen during Canada’s post-legalisation boom. Yet, with over 745 million residents in the EU and increasing regulatory alignment, it will take significant scale to oversaturate the market.

Malta’s role may remain small in volume but strategically significant – as both a regulatory reference point and potential hub for compliance-led operators seeking a foothold in a maturing European cannabis economy.