Australia Legal Cannabis Market Trends Indicate Growing Acceptance and Demand for Products

Posted on 2024-12-11 by researchinsights in Internet & Online // 0 Comments

The Australia legal cannabis market size is expected to reach USD 540.6 million by 2030, registering a CAGR of 27.8% from 2024 to 2030, according to a new report by Grand View Research, Inc. Factors such as a growing patient population, cannabis legalization, government initiatives, and the presence of local and foreign players in the country contribute to market growth. For instance, according to the data published by the Penington Institute in 2022, approximately 250,000 medicinal cannabis prescriptions were approved up to June 2022.

The marijuana industry is booming due to the increasing adoption of marijuana for medical and adult use. Marijuana has only been legalized for medical use in Australia and is anticipated to be legalized for recreational use as well. Through these legalizations, the government can try to curb the illicit marijuana market and focus on gaining substantial revenue from taxes levied on cannabis products. Moreover, the legalization and adoption of cannabis and the launch of new cannabis products are anticipated to increase market growth. For instance, in September 2023, MediPharm Labs Corp., a pharmaceutical company, launched new GMP cannabis products, such as Beacon inhalation cartridges and medical cannabis oil, in the Australian healthcare market.

Gather more insights about the market drivers, restrains and growth of the Australia Legal Cannabis Market

The number of patients seeking medical marijuana for therapeutic benefits has increased. Moreover, the number of companies operating in the medical marijuana market is growing. Many companies have also been listed on the Australian Stock Exchange (ASX). As the market evolves, small local players and entrepreneurs increase in the Australian legal cannabis market. These players apply for cultivation licenses and are being funded or acquired by major players. For instance, in October 2023, Vitura Health Limited, a provider of medicinal cannabis products and digital health solutions, acquired Doctors On Demand, a telehealth service company, to enter new service and product verticals.

Moreover, growing awareness among people regarding the therapeutic applications of cannabis and the launch of new cannabis-based products drive market growth. For instance, according to data published by the Penington Institute in 2022, TGA has given 70,000 medicinal cannabis approvals for chronic pain in 2021. Moreover, medicinal cannabis is approved for sleep issues, anxiety, and cancer pain.

Australia Legal Cannabis Market Report Highlights

By source, the hemp segment dominated the legal cannabis market in 2023, owing to its application in several medical products, textile and non-textile industries

Based on derivative, the CBD segment led the market in 2023, owing to the legalization of low-dose CBD products by the Therapeutic Goods Administration (TGA)

By end-use, the industrial application segment dominated the market in 2023, owing to the application of cannabis products in construction, personal care, food and beverage, automotive, and textile industries

Key Australia Legal Cannabis Company Insights

Key players are engaging in new product development, partnership, and merger & acquisition strategies to increase their market share. For instance, in October 2023, AgriFutures Australia, a Research and Development Corporation, invested USD 2.5 million over five years to conduct research into four key areas such as hemp primary production, hemp seeds and varieties, hemp sustainability, and hemp products. Market players such as Zelira AusCann Group Holdings Ltd.; and others dominated the market. These key players have been supplying cannabis for medicinal purposes. Furthermore, emerging players, including ECOFIBRE and Bod Australia are undertaking several partnerships and research studies to promote cannabis-based medicines.

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