The Australia legal cannabis market was valued at USD 67.4 million in 2022, and it is anticipated that it will reach a market value of USD 828.2 million by 2033, growing at a robust CAGR of 30.1% from 2023 to 2033.
In Australia, support for legalizing marijuana is growing. The main factor fueling this momentum is the growing understanding that the product may have a variety of valid medicinal benefits and therapeutic applications. According to the United Nations Office on Drugs and Crime, it is the narcotic that is grown, trafficked, and consumed the most throughout the world (UNODC). This is changing the Australia legal cannabis market outlook.
The Australian legal cannabis market's medicinal application sector is anticipated to grow at the quickest rate during the forecast period. It's because people are becoming more aware of the positive effects that cannabis products can have on their health and because the Australian government supports its usage for medical purposes. As per the market study, the Australian federal government, as well as state and territory governments have authorized regulations allowing for convenient access to medicinal cannabis products. Among the sub-applications in the medical application were inflammation, anxiety, chronic pain, sleep issues, and pain.
| Report Attribute | Details |
|---|---|
| Estimated Market Value (2022) | USD 67.4 million |
| Expected Market Value (2023) | USD 87.7 million |
| Projected Forecast Value (2033) | USD 828.2 million |
| Anticipated Growth Rate (2023 to 2033) | 30.1% CAGR |
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The global demand for Australia legal cannabis market was estimated to reach a valuation of USD 52.5 million in 2018, according to a report from Future Market Insights (FMI). From 2018 to 2022, sales witnessed significant growth in the Australia legal cannabis Market, registering a CAGR of 20.9%.
The public's growing understanding of the advantages of cannabis consumption for health is fueling the market's expansion. The market in Australia is anticipated to expand as marijuana use becomes increasingly legal, mostly for medicinal reasons.
The expansion of legalization, the rising patient population, increased government assistance, and the presence of domestic and international businesses in the market are some other key drivers of the growth.
Availability of a Wide Range of Products likely to boost Growth
Retailers and Sativa consumer goods companies are quickly changing to satisfy the demands of "mainstream" marijuana consumers. Consumers now have a wider range of goods to choose from, such as topicals, concentrates, and infused products, rather than being restricted to smoking flowers with joints, pipes, or bongs.
The Australia legal cannabis market continues to see a strong demand for beverages, candies, and chocolates made from hemp. Such edibles take one to two hours to start producing a euphoric "high," but the impact lasts longer than when smoke or vapor is inhaled. Product innovation and packaging-related modification are anticipated to develop at the highest rate over the projection period and are expected to play a crucial role in raising the sales of Australia legal cannabis.
Increased Demand for Medical Marijuana to Bolster Sales
Growing patient populations, expanding government backing, increasing cannabis legalization, and the presence of both domestic and international players in the country are all factors in the Australia legal cannabis market development. More medicinal marijuana is being produced as pharmaceutical industry demand rises, which is encouraging Australia legal cannabis market growth.
During the anticipated period, the recreational application category of the Australia legal cannabis market is anticipated to develop at the quickest rate. The main drivers of the expansion of this market sector are the rising public awareness of cannabis and the rising legality of its recreational use and cultivation. The category is expanding due to the increasing use of cannabis for its health benefits and the supportive attitude of the Australian government.
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Strict Laws to Impede Market Growth Eventually
The laws governing the use of marijuana and hemp for medical purposes are strictly regulated in Australia and are continuously changing, thereby impacting the Australia legal cannabis market outlook. According to the Australian Institute of Health and Welfare, legalization was supported by 41.0% of the population as of July 2020.
The nation's capital Canberra became the first city to legalize recreational marijuana use and personal marijuana cultivation in September 2019. Possession of recreational marijuana is still prohibited nationwide on a federal basis, though. The government passed new cannabis laws, enabling the Australian Capital Territory (ACT) to buy and grow marijuana for recreational purposes.
CBD to Take the Lion’s Share in the Australia Legal Cannabis Market
CBD has the greatest Australia legal cannabis market share equivalent to 66.4% of the regional market. The Australian Register of Therapeutic Goods has not yet given these items its seal of approval (ARTG), although low-dose CBD products have been made permissible by the Therapeutic Goods Administration (TGA). CBD has been approved to treat a number of ailments, including arthritic pain, epileptic seizures, and chemotherapy-induced nausea. Only one regulatory-grade medicine, Epidyolex, used to treat severe childhood epilepsy, is permitted for usage in Australia.
Individuals Prefer Buying the Cannabis Products of their Choice
With an 81.2% revenue share in 2022, the industrial application segment dominated the Australia legal cannabis market. Hemp fibers and oil are becoming more and more popular, which is assisting the category's expansion in the textile, food and beverage, automotive, personal care, and textile industries.
The need for coatings, varnishes, oil paints, petrol, printing inks, solvents, putty, and chainsaw lubricants is expected to rise. Cannabis is increasingly being utilized for non-textile purposes to lessen deforestation, pollution, and landfill waste.
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The key players in this market include:
The Australia legal cannabis market is heavily dominated by numerous local and foreign businesses. Local companies are focusing their efforts on expanding their clientele, domestic exports, and geographic reach. International players are funding regional companies to strengthen their position themselves in the Australia legal cannabis market share. Some of the key developments in the Australia legal cannabis market are:
| Report Attribute | Details |
|---|---|
| Growth Rate | CAGR of 30.1% from 2022 to 2032 |
| Market value in 2023 | USD 87.7 million |
| Market value in 2033 | USD 828.2 million |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | USD million for value |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered |
Source, Derivate, End-Use |
| Key Companies Profiled | Cann Group Limited; Zelira Therapeutics; AusCann Group Holdings Ltd.; Bod Australia; Althea Group; ECOFIBRE; MCG Pharma; EPSILON; Emyria |
| Customization & Pricing | Available upon Request |
The projected CAGR of the australia legal cannabis market by 2033 is 30.1%.
The projected market value by 2033 is USD 828.2 million.
The market is estimated to secure a valuation of USD 87.7 million in 2023.
The food and beverage industry is the key consumer of the australia legal cannabis market.
Cannvalate, MedReleaf Australia, and AusCann. are the three key players in the market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Source 5.1. Marijuana 5.1.1. Flower 5.1.2. Oil & Tinctures 5.2. Hemp 5.2.1. Hemp CBD 5.2.2. Supplements 5.2.3. Industrial Hemp 6. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Derivatives 6.1. CBD 6.2. THC 6.3. Others 7. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-Use 7.1. Medical Use 7.1.1. Chronic Pain 7.1.2. Anxiety and Depression 7.1.3. Cancer 7.1.4. Arthritis 7.1.5. Diabetes 7.1.6. Glaucoma 7.1.7. Migraines 7.1.8. Epilepsy 7.1.9. Multiple Sclerosis 7.1.10. Others 7.2. Recreational Use 7.3. Industrial Use 8. Market Structure Analysis 9. Competition Analysis 9.1. Cann Group Limited 9.2. Zelira Therapeutics 9.3. AusCann Group Holdings Ltd. 9.4. Bod Australia 9.5. Althea Group 9.6. ECOFIBRE 9.7. MCG Pharma 9.8. EPSILON 9.9. Cronos Australia 9.10. Little Green Pharma 9.11. Emyria 10. Assumptions & Acronyms Used 11. Research Methodology
Healthcare
July 2022
REP-GB-15206
324 pages
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Australia Legal Cannabis Market
