Light cannabis in Italy: 2 billion euros and 20,000 workers

The cannabis light in Italy now generates, both directly and indirectly 1.963 billion euros and supports 22,000 full-time jobs, according to a study by MPG Consulting reported by DolceVitaOnline.

But this market is now under threat from the Meloni government, which is seeking to shut it down.

Italy’s far right at war with hemp

Despite its economic potential, the Italian market for hemp and CBD faces major obstacles due to restrictive government measures. Two controversial policies have been implemented:

1. A proposed amendment to the Italian security law, which would ban the production and sale of hemp flowers and their derivatives, even if THC levels remain within EU limits.
2. A decree classifying oral CBD as a narcotic, restricting its sale to pharmacies and requiring a non-renewable prescription. This The decree has been temporarily suspended by the Regional Administrative Court of Lazio in Italy in September.

The Committee on Petitions of the European Parliament discussed these restrictions on March 17, with Mattia Cusani, president of Canapa Sativa Italiana, arguing that these policies violate EU laws on free trade and fair competition.

The commission sent an official letter of complaint to the Italian government, giving Rome 90 days to respond. However, the European Commission has not yet taken any definitive action, frustrating industry stakeholders who fear an economic collapse if restrictive measures are implemented.

The Significance of the Italian Hemp Industry

And the MPG Consulting study gives them plenty to think about. In addition to estimating the sector’s economic potential, the study provides a parallels between the wine industry and the hemp industry, suggesting that Italy could position itself as a European—or even global—leader in premium-quality light cannabis, just as it has done with wine. The two industries share a close connection to Italian culture and terroir, featuring distinct sensory experiences, regional varieties, and well-defined quality standards.

The Italian wine industry thrives thanks to designations of origin protected designations of origin (PDO) and protected geographical indications (PGI), which ensure traceability and quality. If similar protections were applied to “light” cannabis, Italy could strengthen its position in the European market while ensuring product safety and consistency.

Economists Adam Orens and Davide Fortin have also modeled two economic scenarios for the "light cannabis" industry: one in which sales continue through specialty stores, e-commerce, and tobacco shops, and the other as part of a state-controlled monopoly.

• Open market scenario:
  • Direct economic impact: 991.4 million euros
  • Indirect economic impact: 970 million euros
  • Total number of jobs created: 22,379
• Monopoly scenario (sales through tobacco shops only):
  • Total economic impact: 530 million euros
  • Total jobs created: 6,042
  • Estimated loss of income: More than 1.4 billion euros

Restrict sales to tobacco retailers would thus significantly shrink the market, driving out many small and medium-sized producers who are responsible for the’innovation and product diversity.

«The profile of the average producer is very interesting and would disappear if tobacconists were granted a monopoly,» explains Mr. Fortin.

In the event of a ban on the production of hemp with active ingredients in Italy, 3,000 businesses could be forced to close, putting 15,000 jobs at risk.