The boundaries between the gray market and the legal CBD market are constantly evolving in Europe, as CBD regulations and national strategies become more defined. Even though theEuropean Union advocates for a degree of harmonization, each country retains its specific characteristics, which will complicate the trade and use of cannabidiol in 2025. This detailed mapping highlights the coexistence of these two markets, their interactions, and the evolution of market growth across the continent.
Evolution of CBD regulations in Europe
Over the past five years, theEuropean 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 legal framework . However, member states are adjusting their policies at different paces, resulting in a veritable legal patchwork where the level THC permitted and sales conditions vary considerably from one country to another.
In France, Germany, and Spain, for example, the permitted THC levels in products vary, with certain distribution channels being subject to particularly close monitoring. Croatia and the Czech Republic have a more open regulatory approach, while several countries still oppose any legalization of cannabis beyond strictly pharmaceutical uses. This context fuels the persistence of the gray market alongside a 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 revise their product selection. In particular, it mandates the assessment of the safety of CBD-based food supplements. Generally, a product exceeding the permitted THC level of 0.3% is immediately removed from the legal market. Some countries, such as Italy, temporarily tolerate certain full-spectrum extracts that comply with this threshold, while others apply a zero-tolerance policy.
Harmonization also faces the challenge of dealing with flowers. Many players still take advantage of regulatory ambiguities to market these products under various pretexts (infusions, collections, 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 received specific approval are offered by specialist shops.
The table below summarizes the state of the legal framework in some key countries:
| Country | Permitted THC level (%) | Flowers allowed | Food products |
|---|---|---|---|
| France | 0,3 | Yes (for uses other than inhalation) | Mandatory novelization |
| Italy | 0,6 | Yes | Marketing subject to declaration |
| Germany | 0,3 | No | Rights limited to validated extracts |
| Suede | 0,0 | No | Prohibited except with pharmacy approval |
Fundamental differences between the grey market and the legal market
The main distinction lies in compliance with official requirements. The legal market encompasses 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, the non-compliance of which exposes manufacturers and retailers to significant penalties.
Conversely, the grey market encompasses a wide range of products sold through regulatory loopholes. This semi-hidden but highly dynamic sector often provides access to products excluded from the legal market, such as certain CBD flowers or unlicensed edibles. This phenomenon is exacerbated by the current strong demand in European markets, whose vitality is confirmed by the recent growth of 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 lower costs, driven by the slow pace of national regulations. Online platforms originating 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. On the legal CBD market, laboratory testing is mandatory, with results published to reassure consumers. Labeling adheres to precise standards regarding composition and the actual concentration of cannabinoids.
Conversely, buying on the grey market exposes one to greater risks: uncertain quality, unknown origin, lack of reliable information or poor storage, or 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 the market gradually transitions from a gray market to a more regulated legal structure.
Several factors explain this evolution: the emergence of dedicated agricultural sectors, the rapid development of a secondary industry (cosmetics, e-liquids, food products), and the increasing number of stakeholders 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 manyEuropean Union
- Increased awareness surrounding cannabinoids and their therapeutic potential
- Public health emergency linked to access to safe extracts, stimulating quality controls
- Upskilling in logistics for specialized agricultural cooperatives
Adaptation of actors in response to the legalization of cannabis
The scenario of legalizing recreational cannabis in Germany is influencing the entire region. Established players in the CBD market are already investing in infrastructure compatible with an expanding legal market. Many are banking on intra-European import and export of authorized CBD products, hoping for a standardization of permitted THC levels and certification procedures.
The tension between the gray market and the legal market is likely to persist as long as some countries resist this standardization. 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 grey market.
Increased structuring also generates specialized jobs, stimulates scientific research, and lowers prices for consumers. Nevertheless, as long as significant disparities persist in CBD regulation, the grey market will continue to exist, albeit more discreetly, but always in an inventive manner.
Frequently asked questions about the grey market and the legal market for CBD in Europe
What are the main criteria differentiating the grey market and the legal market for CBD?
- Compliance or non-compliance with the legal framework defined by each member state.
- The origin and traceability of products.
- Official controls are present on the legal market, but almost absent on the grey market.
A product available on the legal market must comply with the permitted THC level and provide guarantees of analysis. Conversely, the grey market offers items whose sale is not necessarily authorized by national interpretations of cannabis law
Why is the growth of the CBD market mainly driven by the emergence of the legal market?
- Improved consumer safety through traceability.
- Development of structured supply chains that bring confidence and stability.
- Support from health institutions strengthens the credibility of professional actors.
The expansion of legal distribution is gradually attracting users concerned about the risks associated with the grey market. Significant investments are also enabling innovation and driving down 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. A few exceptions remain, and some states may continue to require zero THC to guarantee the complete absence of psychoactive effects.
| Country | Current rate (%) | Projected trend in 2025 (%) |
|---|---|---|
| France | 0,3 | 0,3-0,5 |
| Italy | 0,6 | 0,6 |
| Germany | 0,3 | 0,3 |
| 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 theEuropean Union. Food products, vaping products, and flowers will likely remain subject to specific restrictions.
- Mandatory certification for ingestion (food supplements, gummies, drinks).
- Sub-categorization is possible for e-liquids according to the permitted THC level.
During this transitional period, the grey market will persist where authorized CBD products are slow to be officially validated or distributed locally.
Editor-in-Chief specializing in CBD
Julien, born on July 17, 1978, in the Paris region, is a prominent writer and expert in the field of CBD products. Following his studies, Julien developed a passion for natural remedies, including CBD. In 2022, he joined the CBD.fr team as an expert and regular contributor. Thanks to his scientific expertise and clear writing style, Julien helps demystify the complexities of CBD, while highlighting its benefits and potential applications through his articles and conference presentations.
