Italy bans hemp and CBD: A €2 billion industry shut down overnight

As of Monday, April 7, 2025, a major decision by the Italian government has sent shockwaves through the European hemp sector: Italy has officially banned the production and sale of hemp flowers, including those containing CBD. This sudden legal shift threatens thousands of jobs and could set a troubling precedent for the wider European market.

❓ What does the new law say?

Passed as part of the new Security Decree promoted by Prime Minister Giorgia Meloni, the legislation now classifies industrial hemp flowers—even those with THC levels below 0.6%—as narcotic substances. In short: “cannabis light” is now illegal, despite having no psychoactive effects.

The law takes effect immediately, leaving no transition period for affected businesses to adapt or liquidate existing stock.

🌿 Why is this a shock to the CBD industry?

Until now, Italy was one of Europe’s largest legal CBD markets, home to around 3,000 companies, 20,000 jobs, and €2 billion in annual revenue. Italian hemp also supplied a variety of industries, including cosmetics, food, eco-construction, and textiles.

“This decision is ideological, not scientific,” argue industry groups such as Canapa Sativa Italia.

CBD is recognized across the European Union as a non-narcotic compound, and multiple rulings by the European Court of Justice have confirmed its legality—provided THC thresholds are respected.

⚖️ Legal tensions with EU Law?

Legal challenges are already underway. Experts argue that this decree violates the EU’s principle of free movement of goods, as outlined in the treaties governing the internal market. The European Commission has opened an investigation to determine whether the Italian ban is compatible with EU law.

🔍 Impact on the CBD Industry in France and Europe

This ban may cause a domino effect in other countries—or it could strengthen the position of nations like France, where CBD remains regulated but legal.

👉 For French and European CBD businesses, Italy’s exit from the market might present an economic opportunity, but it also highlights the urgent need to secure CBD’s legal status across the EU.

🛑 Summary

• As of April 7, 2025, Italy bans the production and sale of hemp flowers (including CBD).

• The move puts 20,000 jobs and €2 billion in revenue at risk.

• The ban may conflict with EU law, opening the door to legal challenges.

• The rest of Europe watches closely—with concern or strategic interest.