Australia Legal Cannabis Market Size, Growth | Forecast 2031

Report Description

Australia Legal Cannabis Market Outlook 2031:

The Australia legal cannabis market size was valued at USD 492.49 Million in 2022 and is projected to reach USD 11.55 Billion by 2031, expanding at a CAGR of 42% during the forecast period 2023 - 2031. The growth of the market is attributed to the rising adoption of legal cannabis in the country and growing legalization of marijuana for adult use.

In Asia Pacific, Australia is a key supporter of cannabis legalization, as compare to other countries. In 2016, the country legalized medical marijuana at the federal level and in 2019, the Australia’s capital, Canberra, was the first city for legalize the cultivation and possession of marijuana for adult use. For most of Australia, on a federal level, the use of marijuana is illegal for use by adults. The Government of Australia passed cannabis laws that allow the Australian Capital Territory (ACT) to possess and cultivate marijuana for adult use.

Residents of Canberra are expected to cultivate two marijuana plants and possess up to 50 grams of marijuana. Other cities in Australia are legalizing medical marijuana for recreational purposes, which in turn, is likely to drive the market during the forecast period.

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Prescription or medical cannabis has been legalized by the Government; however, it has an indulgent approach of its users. Hence, the number of patients looking for medical marijuana is growing significantly. Additionally, the number of players operating in the legal medical marijuana market is increasing and many of them are listed on the Australian Stock Exchange (ASX). These companies are applying for licenses of cultivations.

In Australia, the process of accessing medical hemp oil is costly and complicate, as no hemp or cannabidiol (CBD) products are approved by the Therapeutic Goods Administration (TGA). Therefore, patients are required to apply for the Government of Australia’s Special Access Scheme for the usage of CBD-based products.

The government’s Special Access Scheme offers CBD-based products to eligible patients only. According to the Australian Institute of Health and Welfare, the use of marijuana is higher than the use of other drugs such as cocaine and ecstasy in the country. Moreover, getting marijuana in the country is easy, an thus the demand for marijuana is growing.

Australia Legal Cannabis Market Trends, Drivers, Restraints, and Opportunities

• Rapid growth cannabis for medical applications, R&D, and to manage pain is a major factor driving the market.
• The number of global suppliers of cannabis is limited, which increases opportunities for local suppliers to cater to the scientific and medicinal domains, which in turn, propels the market.
• Increasing legalization of cannabis and growing adoption of marijuana are anticipated to fuel the market.
• Novel product delivery solutions and development of products through research are expected to boost the market.
• Rising illegal trade of cannabis and complicated regulatory structure for the use of cannabis are factors that can impede the market during the forecast period.

Scope of the Australia Legal Cannabis Market Report

The report on the global Australia legal cannabis market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Australia Legal Cannabis Market Segment Insights

Marijuana segment to hold a key market share

In terms of product types, the Australia legal cannabis market is segmented into marijuana and hemp oil. The marijuana segment dominated the market and is expected to hold a key share of the market during the forecast period due to the presence of a large number of consumers in Australia.

Furthermore, higher and easier accessibility of marijuana than other products is anticipated to propel the market. The marijuana segment is divided into flower and oil. Flowers are the main product and that are widely used for producing other products by manufacturers. On the other hand, the oil sub-segment is anticipated to expand at a rapid pace during the forecast period.

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Smoking marijuana causes health problems such as respiratory diseases, production of phlegm, and chronic cough. Rising awareness regarding these negative effects among people is fueling the adoption of cannabis oil. Moreover, the oil is travel friendly, easy to use, as can be used added to food, and the oil does not have side effects. This, in turn, drives the sub-segment.

Medical segment is expected to expand at a significant pace

Based on applications, the market is segregated into adult use, medical, and B2B channels. The medical segment dominated the market and is expected to account for a key share during the forecast period owing to increasing awareness about medical cannabis products.

Moreover, the ongoing support of the Government of Australia about the use of medical cannabis is fuelling segment. For instance, the State and Territory Governments and the Commonwealth Government in Australia passed laws enabling  easy access to cannabis products.

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The medical segment is divided into chronic pain, anxiety, inflammation, sleep disorder, and others. The chronic pain sub-segment dominated the market owing to growing demand for plant-based therapeutics and ill-effects caused by opioid intake. Fast paced lifestyle is rapidly causing ailments such as obesity, which is further causing chronic pain, inflammation, anxiety, and sleep disorders.

The B2B channels segment is anticipated to expand at a significant pace during the forecast period. The B2B channel includes various market players buying marijuana from cultivators to produce finished products including nutraceuticals, cosmetics, pharmaceuticals, and personal care. Growing number of partnerships between cultivators and pharmaceutical companies for R&D of product is a key factor boosting the market