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Australia Legal Cannabis Market Snapshot (2023 to 2033)

The Australia legal cannabis market was valued at US$ 67.4 million in 2022, and it is anticipated that it will reach a market value of US$ 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) US$ 67.4 million
Expected Market Value (2023) US$ 87.7 million
Projected Forecast Value (2033) US$ 828.2 million
Anticipated Growth Rate (2023 to 2033) 30.1% CAGR

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Australia Legal Cannabis Market Historical Analysis (2018 to 2022) Vs. Forecast Outlook (2023 to 2033)

The global demand for Australia legal cannabis market was estimated to reach a valuation of US$ 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.

What is primarily driving the Global Market for Australia Legal Cannabis Market?

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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What are the Existing Challenges for the Australia Legal Cannabis Market Future Trends?

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.

Category-wise Insights

Which Type of Australia Legal Cannabis Derivatives are Most Preferred in the Global Market?

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.

Which Segment of the Australia Legal Cannabis Market on the basis of End Use is Performing Better?

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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Comparative View of the Adjacent Markets

Australia Legal Cannabis Market:

Attributes Australia Legal Cannabis Market
CAGR (2023 to 2033) 30.1%
Market Value 2023 US$ 87.7 million
Growth Factor The market is expanding overall because to the increased production of medical marijuana brought on by rising pharmaceutical industry demand.
Future Opportunities The public's growing understanding of the advantages of cannabis consumption for health is fueling the market's expansion.
Market Trends Cannabis is being used more and more in non-textile applications to cut down on deforestation, pollution, and landfill waste.

Cannabis Testing Market:

Attributes Cannabis Testing Market
CAGR (2023 to 2033) 13.4%
Market Value 2023 US$ 962 million
Growth Factor Legalizing cannabis for medical purposes and expanding the number of cannabis testing facilities is driving the market.
Future Opportunities The cannabis testing industry is anticipated to grow rapidly in emerging nations throughout LATAM (Latin America) and the MEA (the Middle East and Africa).
Market Trends Major challenges that are anticipated to impede market expansion include a lack of standardization in rules and regulations, excessive expenses, and insufficient staff.

Drug Screening Market:

Attributes Drug Screening Market
CAGR (2023 to 2033) 16.8%
Market Value 2023 US$ 5.3 billion
Growth Factor Strict legislation requiring drug and alcohol testing due to rising drug and alcohol use, and an increase in regulatory approvals for drug screening goods and services, this market is expected to rise.
Future Opportunities The development of drug-screening goods & services for use on the road will continue to grow, contributing to the growth of the industry as a whole.
Market Trends The expansion of this market may be limited to some extent by restrictions on employment drug testing and alcohol usage in Islamic nations.

Startup Ecosystem in the Global Australia Legal Cannabis Market

  • The newly joint-listed medical cannabis and psychedelic clinical development business Incannex Healthcare has climbed to the top spot on the list of 2022 Australia's Top Cannabis Companies after its share price achieved an all-time high in early 2022.
  • The acquisition of APIRx results in a diverse portfolio of promising therapeutic candidates aimed at treating a wide range of conditions, including pain, dementia, Parkinson's Disease, restless leg syndrome, gastrointestinal diseases, periodontitis, addiction disorders, skin conditions, and ophthalmic conditions. There are 22 active clinical and preclinical research and development projects, and there are another 23 pending.
  • The leadership of Incannex has great expectations for the cannabinoid-based chewing gum brand CanQuit, which has the potential to upend the over $5 million (US$ 7 million) per year nicotine chewing gum business. Its sibling product, CanQuitO, fights opioid addiction in a comparable but original manner.

Market Competition

The key players in this market include:

  • Cann Group Limited
  • Zelira Therapeutics
  • AusCann Group Holdings Ltd.
  • Bod Australia
  • Althea Group
  • ECOFIBRE
  • MCG Pharma
  • EPSILON

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:

  • In 2023, Cann Group has made plans with shareholders to discuss furthering the growth of cultivation and manufacturing at its US$ 120 million Mildura plant. The firm is attempting to fund US$ 11.7 million in order to get the medicinal cannabis production and research facility up to full operating capacity of 12.5 tonnes of dried plant matter per year. Recent completion of the facility's first annual commercial crop resulted in the production of roughly 3.1 tonnes of dried biomass for a variety of dried flower as well as oil products.
  • In 2020, Zelira Therapeutics accomplished another medical cannabis study and succeeded with flying colors. This time, a Phase 1 dosage escalation trial was conducted to evaluate the safety of the cannabis formulations in patients with chronic pain who were receiving opioid therapy.
  • In 2022, Bod Australia renamed itself Bod Science to better represent its regional scope and emphasize the company's drug-development expertise. At its yearly shareholder meeting, the company's shareholders unanimously accepted the change, leading to the official adoption of the new name.

Report Scope

Report Attribute Details
Growth Rate CAGR of 30.1% from 2022 to 2032
Market value in 2023 US$ 87.7 million
Market value in 2033 US$ 828.2 million
Base Year for Estimation 2022
Historical Data 2018 to 2022
Forecast Period 2023 to 2033
Quantitative Units US$ 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

Key Segments Profiled in the Australia Legal Cannabis Market

By Source:

  • Marijuana
    • Flower
    • Oil & Tinctures
  • Hemp
    • Hemp CBD
    • Supplements
    • Industrial Hemp

By Derivates:

  • CBD
  • THC
  • Others

By End-Use:

  • Medical Use
    • Chronic Pain
    • Anxiety and Depression
    • Cancer
    • Arthritis
    • Diabetes
    • Glaucoma
    • Migraines
    • Epilepsy
    • Multiple Sclerosis
    • AIDS
    • Amyotrophic Lateral Sclerosis
    • Alzheimer’s
    • Post-Traumatic Stress Disorder (PTSD)
    • Parkinson’s
    • Tourette’s
    • Others
  • Recreational Use
  • Industrial Use

Frequently Asked Questions

What is the projected CAGR of the Australia Legal Cannabis Market by 2033?

The projected CAGR of the australia legal cannabis market by 2033 is 30.1%.

What is the projected Australia Legal Cannabis Market value by 2033?

The projected market value by 2033 is US$ 828.2 million.

What is the Current Australia Legal Cannabis Market Valuation?

The market is estimated to secure a valuation of US$ 87.7 million in 2023.

Which Industry is the Key Consumer of the Australia Legal Cannabis Market?

The food and beverage industry is the key consumer of the australia legal cannabis market.

Who are the Three Key Players in the Australia Legal Cannabis Market?

Cannvalate, MedReleaf Australia, and AusCann. are the three key players in the market.

Table of Content

1. Executive Summary

    1.1. Australia Market Outlook

    1.2. Demand-side Trends

    1.3. Supply-side Trends

    1.4. Technology Roadmap Analysis

    1.5. Analysis and Recommendations

2. Market Overview

    2.1. Market Coverage / Taxonomy

    2.2. Market Definition / Scope / Limitations

3. Market Background

    3.1. Market Dynamics

        3.1.1. Drivers

        3.1.2. Restraints

        3.1.3. Opportunity

        3.1.4. Trends

    3.2. Scenario Forecast

        3.2.1. Demand in Optimistic Scenario

        3.2.2. Demand in Likely Scenario

        3.2.3. Demand in Conservative Scenario

    3.3. Opportunity Map Analysis

    3.4. Product Life Cycle Analysis

    3.5. Supply Chain Analysis

        3.5.1. Supply Side Participants and their Roles

            3.5.1.1. Producers

            3.5.1.2. Mid-Level Participants (Traders/ Agents/ Brokers)

            3.5.1.3. Wholesalers and Distributors

        3.5.2. Value Added and Value Created at Node in the Supply Chain

        3.5.3. List of Raw Material Suppliers

        3.5.4. List of Existing and Potential Buyer’s

    3.6. Investment Feasibility Matrix

    3.7. Value Chain Analysis

        3.7.1. Profit Margin Analysis

        3.7.2. Wholesalers and Distributors

        3.7.3. Retailers

    3.8. PESTLE and Porter’s Analysis

    3.9. Regulatory Landscape

        3.9.1. By Key Country

    3.10. Country Parent Market Outlook

    3.11. Production and Consumption Statistics

    3.12. Import and Export Statistics

4. Market Analysis 2018 to 2022 and Forecast, 2023 to 2033

    4.1. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis, 2018 to 2022

    4.2. Current and Future Market Size Value (US$ Million) & Volume (Tons) Projections, 2023 to 2033

        4.2.1. Y-o-Y Growth Trend Analysis

        4.2.2. Absolute $ Opportunity Analysis

5. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Source

    5.1. Introduction / Key Findings

    5.2. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis By Source , 2018 to 2022

    5.3. Current and Future Market Size Value (US$ Million) & Volume (Tons) Analysis and Forecast By Source , 2023 to 2033

        5.3.1. Marijuana

            5.3.1.1. Flower

            5.3.1.2. Oil & Tinctures

        5.3.2. Hemp

            5.3.2.1. Hemp CBD

            5.3.2.2. Supplements

            5.3.2.3. Industrial Hemp

    5.4. Y-o-Y Growth Trend Analysis By Source , 2018 to 2022

    5.5. Absolute $ Opportunity Analysis By Source , 2023 to 2033

6. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Derivates

    6.1. Introduction / Key Findings

    6.2. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis By Derivates, 2018 to 2022

    6.3. Current and Future Market Size Value (US$ Million) & Volume (Tons) Analysis and Forecast By Derivates, 2023 to 2033

        6.3.1. CBD

        6.3.2. THC

        6.3.3. Others

    6.4. Y-o-Y Growth Trend Analysis By Derivates, 2018 to 2022

    6.5. Absolute $ Opportunity Analysis By Derivates, 2023 to 2033

7. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-Use

    7.1. Introduction / Key Findings

    7.2. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis By End-Use, 2018 to 2022

    7.3. Current and Future Market Size Value (US$ Million) & Volume (Tons) Analysis and Forecast By End-Use, 2023 to 2033

        7.3.1. Medical Use

            7.3.1.1. Chronic Pain

            7.3.1.2. Anxiety and Depression

            7.3.1.3. Cancer

            7.3.1.4. Arthritis

            7.3.1.5. Diabetes

            7.3.1.6. Glaucoma

            7.3.1.7. Migraines

            7.3.1.8. Epilepsy

            7.3.1.9. Multiple Sclerosis

            7.3.1.10. Others

        7.3.2. Recreational Use

        7.3.3. Industrial Use

    7.4. Y-o-Y Growth Trend Analysis By End-Use, 2018 to 2022

    7.5. Absolute $ Opportunity Analysis By End-Use, 2023 to 2033

8. Market Structure Analysis

    8.1. Competition Dashboard

    8.2. Competition Benchmarking

    8.3. Market Share Analysis of Top Players

        8.3.1. By Source

        8.3.2. By Derivates

        8.3.3. By End-Use

9. Competition Analysis

    9.1. Competition Deep Dive

        9.1.1. Cann Group Limited

            9.1.1.1. Overview

            9.1.1.2. Product Portfolio

            9.1.1.3. Profitability by Market Segments

            9.1.1.4. Sales Footprint

            9.1.1.5. Strategy Overview

                9.1.1.5.1. Marketing Strategy

                9.1.1.5.2. Product Strategy

                9.1.1.5.3. Channel Strategy

        9.1.2. Zelira Therapeutics

            9.1.2.1. Overview

            9.1.2.2. Product Portfolio

            9.1.2.3. Profitability by Market Segments

            9.1.2.4. Sales Footprint

            9.1.2.5. Strategy Overview

                9.1.2.5.1. Marketing Strategy

                9.1.2.5.2. Product Strategy

                9.1.2.5.3. Channel Strategy

        9.1.3. AusCann Group Holdings Ltd.

            9.1.3.1. Overview

            9.1.3.2. Product Portfolio

            9.1.3.3. Profitability by Market Segments

            9.1.3.4. Sales Footprint

            9.1.3.5. Strategy Overview

                9.1.3.5.1. Marketing Strategy

                9.1.3.5.2. Product Strategy

                9.1.3.5.3. Channel Strategy

        9.1.4. Bod Australia

            9.1.4.1. Overview

            9.1.4.2. Product Portfolio

            9.1.4.3. Profitability by Market Segments

            9.1.4.4. Sales Footprint

            9.1.4.5. Strategy Overview

                9.1.4.5.1. Marketing Strategy

                9.1.4.5.2. Product Strategy

                9.1.4.5.3. Channel Strategy

        9.1.5. Althea Group

            9.1.5.1. Overview

            9.1.5.2. Product Portfolio

            9.1.5.3. Profitability by Market Segments

            9.1.5.4. Sales Footprint

            9.1.5.5. Strategy Overview

                9.1.5.5.1. Marketing Strategy

                9.1.5.5.2. Product Strategy

                9.1.5.5.3. Channel Strategy

        9.1.6. ECOFIBRE

            9.1.6.1. Overview

            9.1.6.2. Product Portfolio

            9.1.6.3. Profitability by Market Segments

            9.1.6.4. Sales Footprint

            9.1.6.5. Strategy Overview

                9.1.6.5.1. Marketing Strategy

                9.1.6.5.2. Product Strategy

                9.1.6.5.3. Channel Strategy

        9.1.7. MCG Pharma

            9.1.7.1. Overview

            9.1.7.2. Product Portfolio

            9.1.7.3. Profitability by Market Segments

            9.1.7.4. Sales Footprint

            9.1.7.5. Strategy Overview

                9.1.7.5.1. Marketing Strategy

                9.1.7.5.2. Product Strategy

                9.1.7.5.3. Channel Strategy

        9.1.8. EPSILON

            9.1.8.1. Overview

            9.1.8.2. Product Portfolio

            9.1.8.3. Profitability by Market Segments

            9.1.8.4. Sales Footprint

            9.1.8.5. Strategy Overview

                9.1.8.5.1. Marketing Strategy

                9.1.8.5.2. Product Strategy

                9.1.8.5.3. Channel Strategy

        9.1.9. Cronos Australia

            9.1.9.1. Overview

            9.1.9.2. Product Portfolio

            9.1.9.3. Profitability by Market Segments

            9.1.9.4. Sales Footprint

            9.1.9.5. Strategy Overview

                9.1.9.5.1. Marketing Strategy

                9.1.9.5.2. Product Strategy

                9.1.9.5.3. Channel Strategy

        9.1.10. Little Green Pharma

            9.1.10.1. Overview

            9.1.10.2. Product Portfolio

            9.1.10.3. Profitability by Market Segments

            9.1.10.4. Sales Footprint

            9.1.10.5. Strategy Overview

                9.1.10.5.1. Marketing Strategy

                9.1.10.5.2. Product Strategy

                9.1.10.5.3. Channel Strategy

        9.1.11. Emyria

            9.1.11.1. Overview

            9.1.11.2. Product Portfolio

            9.1.11.3. Profitability by Market Segments

            9.1.11.4. Sales Footprint

            9.1.11.5. Strategy Overview

                9.1.11.5.1. Marketing Strategy

                9.1.11.5.2. Product Strategy

                9.1.11.5.3. Channel Strategy

10. Assumptions & Acronyms Used

11. Research Methodology

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List of Tables

Table 1: Market Value (US$ Million) Forecast by Country, 2018 to 2033

Table 2: Market Volume (Tons) Forecast by Country, 2018 to 2033

Table 3: Market Value (US$ Million) Forecast by Source , 2018 to 2033

Table 4: Market Volume (Tons) Forecast by Source , 2018 to 2033

Table 5: Market Value (US$ Million) Forecast by Derivates, 2018 to 2033

Table 6: Market Volume (Tons) Forecast by Derivates, 2018 to 2033

Table 7: Market Value (US$ Million) Forecast by End-Use, 2018 to 2033

Table 8: Market Volume (Tons) Forecast by End-Use, 2018 to 2033
Nandini Roy Choudhury
Nandini Roy Choudhury

Principal Consultant

Talk to Analyst

Find your sweet spots for generating winning opportunities in this market.

List of Charts

Figure 1: Market Value (US$ Million) by Source , 2023 to 2033

Figure 2: Market Value (US$ Million) by Derivates, 2023 to 2033

Figure 3: Market Value (US$ Million) by End-Use, 2023 to 2033

Figure 4: Market Value (US$ Million) by Country, 2023 to 2033

Figure 5: Market Value (US$ Million) Analysis by Country, 2018 to 2033

Figure 6: Market Volume (Tons) Analysis by Country, 2018 to 2033

Figure 7: Market Value Share (%) and BPS Analysis by Country, 2023 to 2033

Figure 8: Market Y-o-Y Growth (%) Projections by Country, 2023 to 2033

Figure 9: Market Value (US$ Million) Analysis by Source , 2018 to 2033

Figure 10: Market Volume (Tons) Analysis by Source , 2018 to 2033

Figure 11: Market Value Share (%) and BPS Analysis by Source , 2023 to 2033

Figure 12: Market Y-o-Y Growth (%) Projections by Source , 2023 to 2033

Figure 13: Market Value (US$ Million) Analysis by Derivates, 2018 to 2033

Figure 14: Market Volume (Tons) Analysis by Derivates, 2018 to 2033

Figure 15: Market Value Share (%) and BPS Analysis by Derivates, 2023 to 2033

Figure 16: Market Y-o-Y Growth (%) Projections by Derivates, 2023 to 2033

Figure 17: Market Value (US$ Million) Analysis by End-Use, 2018 to 2033

Figure 18: Market Volume (Tons) Analysis by End-Use, 2018 to 2033

Figure 19: Market Value Share (%) and BPS Analysis by End-Use, 2023 to 2033

Figure 20: Market Y-o-Y Growth (%) Projections by End-Use, 2023 to 2033

Figure 21: Market Attractiveness by Source , 2023 to 2033

Figure 22: Market Attractiveness by Derivates, 2023 to 2033

Figure 23: Market Attractiveness by End-Use, 2023 to 2033

Figure 24: Market Attractiveness by Country, 2023 to 2033

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