As the week comes to a close, so does our 4/20 special with this final installment. We've spoken with many growers from Portugal, Switzerland, South Africa, New Zealand, and the US. Today, we're rounding it all up, giving the stage to cannabis research company Innexo, Dutch consultant Cultivators, air sanitation company Innovative Solutions, California grower Fog City, and Israeli grower CannArava. We'll take a look at the state of cannabis knowledge in Europe, provide a US perspective on the European market — and vice versa — and conclude this year's special with an overview of what's been happening in the Israeli cannabis space.
Innexo – Cannabis Research
In the ever-evolving cannabis landscape, research is no longer a niche pursuit — it's becoming the industry's driving force. "The market has shifted toward a more scientific and data-driven approach over the last few years," says Dominique van Gruisen of Innexo. "Data is king. The best marketing is the best data."
This shift is echoed in the growing number of applications for cannabis research, as both established and emerging producers look to back their claims with real science. Dominique notes that new players are cropping up across Denmark, Malta, and even Morocco — a sign of the industry's accelerating globalization. "I think the best years are ahead of us," he says. "Cannabis still has a long way to go before it can be considered on par with major ag crops, but next year is going to be super exciting."
Scaling up access to cannabis research is now one of the sector's most pressing challenges — and one Innexo is tackling head-on. "There's been a clear increase in demand," Dominique explains. "We're working on expanding our activities and lowering the threshold for companies to participate in meaningful cannabis research." While technology continues to offer compelling opportunities for the industry, Innexo sees genetics as the next major frontier. "We're pioneering seed sourcing tech, and we're seeing a rise in advanced breeding techniques," he says. "There's been significant progress in F1 hybrids, triploids, and improved quality control — it's a whole new level of precision."
But not all developments are positive. One of the industry's biggest emerging threats is hop latent viroid (HLVd). "It's already a widespread issue, especially in the U.S., where nearly every facility has encountered it," Dominique warns. "What's even more concerning is the risk of HLVd being transmitted through seeds — especially since these are traded globally. If seeds produced in North America carry infections and enter the European market, that's a serious problem." Innexo is actively working on both early detection and long-term solutions. "Over the next few months, we hope to make progress not only with smart camera detection systems but also with testing seeds themselves. There's currently no treatment or reliable detection method — that's the gap we're aiming to close over the coming year."
Cultivators – Training Growers
Sonny Moerenhout from Cultivators also believes data is absolutely king, and more growers should be laser-focused on that — something that may not always happen. "In recent years, cultivation facilities have been set up, but not in the right way. Influences from the hobby market did not help companies to succeed. We currently see quite a few projects coming to us with the question: can you help us upgrade? For example, climate systems or irrigation systems were not set up correctly. It's a pity, as this requires another investment they didn't anticipate, but in order to succeed in the long run, they need to make changes. As flower prices are decreasing, the cost price needs to decrease as well in order to maintain a sustainable ROI."
It's essential for any large-scale grower to have their cultivation reach maximum efficiency, allowing them to pivot on a dime to cater to new and different market trends. We've indeed seen in our previous installments that finished products are carving out an increasingly larger space in the market. Sonny believes the same thing. "Mature markets are trending toward pre-rolls. Cannabis extracts are also increasing in popularity. In Europe, there is still too much focus on THC%. However, industry professionals are educating the public more and more to look beyond THC%. An educated person will start to appreciate a more diverse product range."
For Sonny, Europe also seems to be a very promising ground for medical cannabis. "With improved access to medical cannabis in Germany, many existing operations are able to export high-quality product to a rapidly growing market. Other large countries, like France, the UK, and Ukraine, are also promising for the coming year, further improving outlooks. On the recreational side, the Netherlands has started the 'coffeeshop experiment,' with legal cannabis products hitting the shelves of participating coffeeshops consistently."
Innovative Solutions – Tackling Promising Markets
Mike D'Ambra, founder of Innovative Solutions, shares a similar opinion. While the company was born in the US, you can find ProGuard units in dozens of cannabis facilities around the world. Europe, however, seems to hold a special place. "We're very optimistic about the future of the industry, particularly when it comes to international growth. The European market is where we see the most exciting opportunities right now. Ongoing legalization efforts across multiple countries, combined with the steady expansion of existing medical cannabis programs, are creating a dynamic and rapidly evolving landscape. What makes Europe especially promising is its strong emphasis on GMP-compliant medical cannabis production. That's where our ProGuard air sanitization system fits in perfectly. It offers a powerful biosecurity solution that helps cultivators and processors meet strict regulatory standards while significantly reducing the risk of microbial contamination. This not only supports compliance but also protects product integrity — critical for companies looking to scale in a tightly regulated environment."
However, he has a more critical view of the situation in the US, which is roughly the same one we've seen both growers and suppliers expressing in yesterday's installment of our special. "The U.S. cannabis market continues to face significant challenges. Many states are experiencing oversaturation, leading to intense competition and downward pressure on prices. When you add in heavy taxation and complex regulatory requirements, it becomes increasingly difficult for companies to remain profitable — let alone grow."
"One of the most pressing challenges we're currently navigating is the impact of tariffs and the rising costs of materials and components. These increases are affecting nearly every product across the industry and putting pressure on both manufacturers and growers alike. In today's climate of global economic uncertainty, these cost pressures are causing many businesses to delay expansion plans or reconsider capital investments. That said, we've built a highly efficient and resilient supply chain, which has allowed us to manage our costs effectively. As a result, we've been able to maintain stable pricing for our customers — even as others in the market are being forced to raise theirs."
Fog City – California
Since we've returned to the US, let's pause in California, where James Cunningham from Fog City has witnessed a market situation characterized by an overabundance of low-quality products. "Our largest challenge in the CA market is an oversaturation of low-quality products. At this time, it is imperative that operators produce AAA-grade products in the most efficient way possible."
Just as Mike from Innovative Solutions pointed out, oversaturation is putting a strain on growers, making it ever more important to run an efficient operation that consistently produces high-quality products. "Many of the larger-scale operators are having a hard time selling their product. Our model at Fog City has been to remain at a boutique scale (roughly 10k sq ft) so that we can have fresh, high-quality product with high rotations. The consumer is becoming more educated about how their products are produced. In the coming months, I see reasonably scaled indoor cultivations in California weathering the storm of oversaturation. It's always 80° and sunny in the indoor grow room, and we're free from pesticide drift and other contaminants. We can create the same exact product 365 days a year. That's the foundation for a brand, and something to be trusted. In the next six months, I see reasonably scaled, responsible operators finding some relief from the oversaturation," James points out.
© Pipp Mobile Storage Systems, Inc.
Scaling up and being a responsible operator isn't always an easy feat, considering how difficult it is for cannabis growers. Just compare their struggle with that of tomato growers, for instance. While we are always talking about horticultural operations, tomato growers have a bit more leeway when it comes to crop losses. Cannabis is so highly valuable that no flower can go to waste — everything needs to be harvested and hit the market. "CA indoor growers need to ensure efficiency and optimal use of their expensive footprint. Fog City has been utilizing the Pipp Horticulture mobile racking platform for the past eight years, which has been a huge contributor to our survival in this competitive and expensive landscape," James concludes.
CannArava – Israel
Let's now end our special with something even more recent. Tariffs from the US have been the talk of the town — and quite rightfully so. At the same time, another country has also imposed huge tariffs on foreign products. Israel has recently imposed a 165% tariff on Canadian cannabis imports. An investigation found that Canadian cannabis was causing price dumping in the country, creating significant issues for the local industry. Many Israeli growers had to shut down their operations as they couldn't withstand the competition from cheap Canadian cannabis. When the 165% tariff was announced, local growers rejoiced, including CannArava. However, things rarely get fixed overnight, and the cannabis market situation in Israel isn't as bright as it could be. "On the demand side, the number of patients has gone down — not significantly, but still, the situation should be the opposite," says Dr. Eyal Policar, co-founder of CannArava. "On the supply side, imports are still pouring in. It far exceeds actual demand, some at dumped prices, some being sold with different names. Most are sold by traders whose only goal is money per gram now, versus some local producers who aim for long-term loyal customers. Many such traders offer pharmacies a bundle strategy, where they offer cheap, almost-expiry-date products if they pay more for other products. On the other hand, there is a beginning of exports."
Opportunities still exist in the Israeli cannabis market, but Dr. Eyal believes some of them are tied to the new import tariff. "If the regulation taxes imports, allowing for fair competition, the market may stabilize. The price should not be affected since the local producers are in it for the long run. If, on top of that, new regulations allow family doctors to issue prescriptions, demand will go up. All producers/manufacturers are presently cash-flow sensitive. Very little R&D is done."
© CannArava
While regulations have a huge impact on the industry, much also depends on cultivation — and work still needs to be done in that regard. "If, at the production level, new varieties with better yields and healthier buds could be produced, or new growing, picking, sorting, drying techniques get developed — even using AI for monitoring, for instance — the impact would be impressive. In manufacturing sites, developing new protocols with hospitals, allowing for unheard-of opportunities, is the way forward."
"At the Volcani Agricultural Institute and at the University of Jerusalem, Faculty of Agriculture, research is ongoing, but it has not yet trickled down to the industry in a way that makes an impact. Hopefully, that can change. The biggest game-changer for the industry would be if investors came back. Then everything mentioned above can happen," he concludes.
Thus ends our 4/20 special series for this year. We can certainly gather that while opportunities abound, it's still not fully clear how to seize them. One thing is for sure, though: the cannabis industry has shown impressive resilience over the years, and both suppliers and growers have gone — and are going — to great lengths to make the industry future-proof. New technologies, new modes of production, new genetics, and so on have constantly evolved. The guiding light seems to be the "right now," and as the saying goes — the best is yet to come.