Economic analysis and latest news on the CBD market in Switzerland

The CBD boom in Switzerland: a sustainable economic phenomenon?

Since 2017, Switzerland has established itself as one of the most advanced countries in Europe when it comes to regulating cannabidiol (CBD). Allowing the marketing of hemp-based products containing less than 1% THC, the country quickly attracted entrepreneurs, farmers and investors. But seven years on from this legislative watershed, what is really happening to the sector's economic development? Between the promise of growth, market saturation and changing business models, CBD is now a marker of new economic trends in Switzerland.

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Dazzling growth... then a brutal rebalancing

The early years of the market were marked by exceptional growth. In 2018, the Swiss CBD sector had an estimated turnover of CHF 60 million, with projections of over CHF 300 million by 2027. The reasons for this rapid growth include a legal framework that is unique in Europe, high demand and unprecedented entrepreneurial enthusiasm.

But like any emerging market, Swiss CBD soon showed signs of overheating. The number of growers exploded, triggering a spectacular fall in prices: from CHF 6,000/kg at its peak, a kilo of flowers is now trading at around CHF 1,000 to 1,500. This turnaround has had a profound impact on undercapitalised structures, revealing the flaws in the initial business model based on the simple sale of raw materials.

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Regional economic and fiscal benefits

Despite this market correction, the CBD sector has helped to revitalise certain rural regions, particularly the cantons of Vaud, Fribourg, Jura and Valais. Farms have converted to legal hemp, creating several hundred direct jobs in cultivation, processing, logistics and distribution.

On the tax front, the state also benefits from CBD. In addition to VAT, companies pay income tax and, in some cases, excise duty on tobacco products. The Federal Customs Administration has estimated the tax revenue generated by the sector at several million Swiss francs, a windfall that could grow even further as the market becomes more structured.

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Diversification: a response to saturation

Faced with falling margins on raw flower, companies in the sector have had to review their business models. Product diversification has become a strategic necessity. Today, the most dynamic players are focusing on value-added products:

• Full-spectrum sublingual oils

• CBD-enriched cosmetics

• Functional food and drink products

• Veterinary care

• E-liquids for vaping machines

This 'Swiss quality' positioning enables us to target a premium clientele, sensitive to traceability, certifications (organic, ISO) and product design. Among these Swiss brands positioned at the top end of the market, Labelle Verte's CBD Lausanne epitomises this move towards a sustainable, differentiated model.

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Exports: high potential, regulatory obstacles

Switzerland's international reputation for quality and transparency offers a clear competitive advantage when it comes to exporting. However, the fragmentation of legislation at European and global level still limits export volumes. Producers have to adapt to the requirements of each market: maximum THC content, authorised format, product registration, enhanced traceability.

Despite this, some Swiss brands are managing to make their mark thanks to specialised distribution networks or local partners. Swiss CBD, a niche product just a few years ago, is becoming a symbol of excellence abroad, particularly in the German, French and Luxembourg markets.

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A changing legal framework

The CBD market is still subject to complex regulations. Legality depends on the THC content (<1%), but also on the product's end use. For example

Product	Applicable regime
Smoking flowers	Tobacco products (Tobacco Ordinance - OTab)
Oils and drops	Law on foodstuffs / medicines
Cosmetics	Ordinance on cosmetic products (OPC)
E-liquids	Double regulation: food + tobacco

Legal references and updates are available on the official website of theFederal Office of Public Health:
👉 bag.admin.ch - Hemp-based products

Professionals in the sector therefore need to be agile and anticipate potential changes to the legal framework, particularly in relation to the pilot trials currently underway on recreational cannabis.

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Current trends: consolidation and professionalisation

The current period marks a transition towards a more mature and professional market. We are witnessing consolidation: small structures with no long-term vision are leaving the market, while more solid players are investing in :

• Product innovation

• Clean extraction technologies

• Quality labels

• User experience (shops, services)

This professionalisation is essential if we are to respond to customers who are better informed, more demanding and more concerned about Swiss quality. In this context, retailers like CBD Lausanne play a key role in embodying this new era of legal hemp: local, transparent and economically stable.

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Recreational cannabis on the horizon: what economic impact?

Since 2022, several Swiss cities, including Lausanne, Zurich and Basel, have been running pilot projects for the supervised distribution of recreational cannabis. Although CBD is not directly involved, these experiments could reshuffle the deck in the medium term:

• Will it compete with CBD or complement it?

• More permissive legislation on broad-spectrum products?

• New clientele and segmentation of uses?

CBD players are keeping a close eye on these developments. Some are already preparing to expand their range if THC legalisation becomes a reality. The line between CBD and 'conventional' cannabis could then become blurred, creating a new global market for hemp.

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Conclusion

In 2025, the Swiss CBD market illustrates the typical dynamics of an economic sector in transition: after the euphoria of the early days, the reality of the market requires selection, innovation and rigour. Behind the products lies a changing entrepreneurial fabric, playing an active role in regional value creation, agricultural diversification and enriching the Swiss export offering.

The next few years will be decisive. Between the stabilisation of the legal framework, the possible opening up of recreational cannabis and changing consumer expectations, CBD is emerging as an indicator of economic and societal transformation, far beyond being a simple feel-good product.