Moroccan cannabis industry sees promising growth amid legal export milestone

Moroccan stakeholders are poised to capitalize on the cannabis legalization trend across 21 of the 27 EU member countries, forecasting annual revenues between 400 and 600 million euros by 2028.

In a significant development, Morocco achieved its first legal export of domestically produced cannabis in the second quarter, with resin containing less than 1% THC fetching between 1,400 and 1,800 euros per kilogram in Switzerland. Despite the modest initial volumes, the local media’s extensive coverage of this export underscores high expectations among Moroccan private actors.

Since its 2021 legalization for medical, pharmaceutical, and industrial uses, nearly 200 operators have entered Morocco’s cannabis market. Insight Partners forecasts the therapeutic cannabis sector to surpass $50 billion by 2028, positioning Morocco as a pivotal global player.

The Moroccan Federation of Pharmaceutical Industry and Innovation (FMIIP) anticipates annual revenues of 4.2 to 6.3 billion dirhams (about 400 to 600 million euros) within four years. This projection hinges on Morocco securing a 10% to 15% share of the European market, as stated by its president in May, buoyed by recent EU legalizations for medical cannabis.

Navigating regulatory hurdles remains pivotal. Sothema, a pharmaceutical firm reporting 2023 revenues of 230 million euros, has developed fifteen high-THC cannabis-based medicines for conditions like cancer, multiple sclerosis, and epilepsy.

Khalid El-Attaoui, director of Axess Pharma, aims to launch these products by 2025 across Moroccan and European markets, including Germany, Denmark, Switzerland, Italy, and France. Despite challenges in psychotropic regulations, El-Attaoui remains optimistic, citing robust agricultural practices and recognized manufacturing standards.

French companies, including the Bio Cannat cooperative, are actively engaged in Morocco’s cannabis sector. Director Aziz Makhlouf, while maintaining confidentiality on identities and revenues, highlights that 80% of Bio Cannat’s operations cater to the local market.

The cooperative has registered approximately ten products with Moroccan labs and plans to expand to thirty more, focusing on CBD-based supplements and cosmetics devoid of THC, targeting ailments such as stress, Parkinson’s disease, and skin conditions. Some products have been available in Moroccan pharmacies since June 1.

Optimism resonates at Morocco’s National Agency for the Regulation of Cannabis Activities (ANRAC). Director Mohammed El-Gerrouj envisions cannabis achieving economic success akin to the automotive sector, Morocco’s leading export. El-Gerrouj recently attended the Cannabis Europa event in London and visited countries like the Netherlands, Portugal, and the Czech Republic, all of which have embraced medical cannabis legalization.

ANRAC’s strategic documents identify diverse sectors that could benefit from Moroccan cannabis, locally dubbed “green gold,” spanning medicine, aerospace, food, construction, hygiene, paper, plastics, textiles, and niche markets like CBD treatments for animals, witnessing a 700-fold revenue increase in two years.

The transition from illicit to legal cultivation appears promising. Authorized cultivation areas expanded from under 300 hectares in 2023 to approximately 3,000 hectares this year, primarily in northern Rif regions like Al-Hoceima, Chefchaouen, and Taounate provinces. The number of licensed farmers has surged nearly sevenfold to nearly 3,300, offering legal alternatives and higher earnings compared to illicit trade.

However, challenges persist, including higher production costs and climate dependency for outdoor cultivation. ANRAC advocates for local “beldiya” seeds, known for their reduced water dependence and sowing suitability in February. Collaborating with Morocco’s National Institute of Agronomic Research, ANRAC aims to certify and distribute “beldiya” seeds to farmers by 2025 to enhance sustainability and yield consistency.