The boundaries between the grey market and the legal CBD market are constantly evolving in Europe, as CBD regulations and national strategies become more defined. Even though the European Union advocates for a degree of harmonization, each country retains its specificities, which complicates the trade and use of cannabidiol in 2025. This detailed map highlights the coexistence of these two markets, their interactions, and the evolution of market growthon the continent. Evolution of CBD regulation in Europe Over the past five years, the European Union
has intensified its efforts to clarify the status of authorized CBD products
. Several rulings by the Court of Justice, combined with WHO recommendations, have contributed to a less disparate legal framework. However, Member States are adjusting their policies at different paces, creating a veritable legal mosaic where the permitted THC level and sales conditions vary considerably from one country to another. In France, Germany, and Spain, for example, the permitted THC level in products differs, with certain distribution channels being particularly closely monitored. Croatia and the Czech Republic have a more open regulatory approach, while several states still oppose any legalization of cannabis beyond strictly pharmaceutical uses. This context fuels the persistence of the grey market alongside a burgeoning legal market. The dynamism of this sector is particularly evident in France, where the CBD market is experiencing continuous and significant growth. European Directive and Legal Framework The Novel Food Directive has forced many distributors to review their product selection. It notably requires them to assess the safety of CBD-based food supplements.Generally speaking, a product exceeding the permitted THC level is subject to a ban. 0.3% is immediately removed from the legal market. Some countries, like Italy, provisionally tolerate certain full-spectrum extracts that meet this threshold, while others apply a zero-tolerance policy.
Harmonization also faces the issue of flowers. Many players still take advantage of regulatory ambiguity to market these products under various pretexts (infusions, collectibles, perfumery), thus maintaining a significant grey market. CBD Status by Country There is a marked contrast between Northern and Southern Europe regarding distribution practices. While Portugal tolerates a diverse range of products, Sweden and Hungary prohibit almost all commercial presence outside of pharmacies. In Poland and Slovakia, only oils that have obtained specific approval are offered by specialized shops. The table below summarizes the state of the legal framework in some key countries: CountryPermitted THC level (%)
Permitted flowers
Food products France0.3 Yes (use other than inhalation) Novelling required Italy0.6
Yes Marketing subject to declarationGermany
0.3
No
Right limited to validated extracts Sweden 0.0
| No | Prohibited except with pharmacy approval | Fundamental differences between the gray market and the legal market | The main distinction lies in compliance with official requirements. The |
|---|---|---|---|
| legal market | includes registered points of sale and | CBD products authorized | according to the |
| national legal framework | . Controls focus on traceability, agricultural origin, and especially the | permitted THC level | , non-compliance with which exposes manufacturers and retailers to significant penalties. |
| Conversely, the | gray market | encompasses a wide range of products marketed through regulatory loopholes. This sector, somewhat hidden but very dynamic, often provides access to forms excluded from the | |
| legal market | , such as certain raw CBD flowers or unlicensed edibles. This phenomenon is exacerbated by the current strong demand in European markets, whose vitality is confirmed by the recent boom in the French CBD industry. | Drivers of the European Grey Market |
Some consumers favor the grey market to access a wider variety of products, often at a lower cost, driven by the slow pace of adaptation of national regulations. Online platforms from more liberal countries facilitate these cross-border purchases despite local restrictions.
Furthermore, police surveillance often hesitates to mobilize significant resources against uses deemed relatively harmless. As a result, the grey market maintains a significant volume despite the growth of the legal market. Safety and Transparency for Users From a health perspective, the difference is clear. In the legal CBD market, laboratory analyses are mandatory, with publication of the results to reassure consumers. Labeling adheres to precise standards regarding composition and actual cannabinoid concentration. Conversely, purchasing from the grey marketexposes consumers to greater risks: uncertain quality, unknown origin, lack of reliable information or improper storage, and even the presence of non-compliant solvents. These dangers are largely concealed in this informal segment.
Growth of the European CBD Market by 2025 The growth of the CBD market continues to surprise, driven by increasing demand for natural solutions and greater cultural acceptance of extracts derived from industrial hemp. European studies anticipate a tripling of revenue by 2025, as thegrey market gradually transitions towards a more regulated legal structure. Several factors explain this evolution: the emergence ofdedicated agricultural sectors
Rapid development of a secondary industry (cosmetics, e-liquids, food products) and a growing number of players seeking to secure their investments under the legal framework. Here are some key elements accelerating this transition:
Gradual adjustment of the national legal framework in many EU member states Increased awareness of cannabinoids and their therapeutic potential Health emergency related to access to safe extracts, stimulating quality controls
Improved logistical capabilities of specialized agricultural cooperatives Adaptation of stakeholders to the legalization of cannabis The scenario of the legalization of recreational cannabis in Germany is influencing the entire region. Established players in the CBD market are already investing in infrastructure compatible with an expansion of the legal market. Many are focusing on the intra-European import/export of authorized CBD products, hoping for a standardization of the permitted THC levels and certification procedures. Tension between the gray market and the legal market is likely to persist as long as some countries resist this normalization. But the trend is clear: professionalization is progressing, even among former gray market players who have now converted to the legal model. Economic and social consequences
The expansion of the legal CBD market benefits the rural economy and reduces the influence of underground networks. According to projections, nearly 60% of volumes could be in the regular distribution channels by the end of 2025 in pioneering countries, thus limiting the influence of the gray market.
Increased structuring also generates specialized jobs, stimulates scientific research, and lowers prices for consumers. Nevertheless, as long as significant disparities in CBD regulation persist, the gray market will remain. It will continue to exist, albeit more discreetly, but always in an inventive way.Frequently Asked Questions about the Gray and Legal Markets for CBD in Europe
What are the main criteria differentiating the gray and legal markets for CBD? Compliance or non-compliance with the legal framework defined by each Member State. The origin and traceability of the products.
Official controls present on the legal market, but virtually absent on the gray market. A product on the legal market must comply with the permitted THC level and provide guarantees of analysis. Conversely, the gray market offers products whose sale is not necessarily authorized by the legalization of cannabis, according to national interpretations. Why is the growth of the CBD market primarily driven by the emergence of the legal market? Improved consumer safety thanks to traceability.
Development of structured supply chains, providing trust and stability. Support from health institutionsstrengthens the credibility of professional actors.
- The expansion of legal distribution is gradually attracting users concerned about the risks associated with thegrey market
- . Significant investments are also enabling innovation and lowering average prices. What changes can be expected in the permitted THC level by 2025 in the European Union? The trend is towards
- gradual harmonization around 0.3% to 0.6% in most countries. Some exceptions remain, and certain states may continue to require zero THC to guarantee the complete absence of psychoactive effects.
- Country Current level (%)
Projected trend in 2025 (%)
France 0.3 0.3-0.5 Italy 0.6 0.6Germany 0.30.3 Spain 0.2
0.3
Will all CBD products be authorized and available through the European legal market by 2025?
The majority of oils and cosmetics should obtain compliant status throughout the European Union. Food products Vapes and flowers will likely remain subject to specific restrictions.Certification will be mandatory for ingestion (food supplements, gummies, beverages).
Sub-categorization is possible for e-liquids based on the permitted THC level. During this transition period, the gray market will persist where authorized CBD products are slow to be officially validated or distributed locally.
