Report Overview

The Australia Cannabis market size stood at USD 171.7 million in 2019 and is projected to reach USD xx billion by 2028, exhibiting a CAGR of xx% during the forecast period.
The use of marijuana in Australia, at a federal level, is illegal. However, the new cannabis laws that have been passed by the Australian government allowed for the cultivation and possession of marijuana in the Australian Capital Territory (ACT). What this implies is that residents of the city of Canberra are now able to cultivate two cannabis plants and possess up to 50 grams or 1.76 oz. of marijuana. It appears that many of the other states will be following suit in legalizing the use of marijuana for recreational purposes. This is a primary factor that is expected to significantly impact the revenue growth of Australias legal cannabis market in the years to come.

The process of presently accessing medical hemp oil in Australia is a tedious and expensive feat, as no cannabidiol (CBD) /hemp products have been approved by the Therapeutic Goods Administration (TGA). Patients that wish to purchase these products, must first apply, and qualify for them through the Australian governments special access scheme. This factor could potentially restrain the future revenue growth of Australias legal cannabis market. Additionally, the rising illicit cannabis trade is another factor that is impacting the revenue growth of this market.



Market Drivers

Key factors supporting the growth are the increasing legalization of marijuana for adult use and the high consumption rate in the country. Australia has been at the forefront to support cannabis legalization as compared to other countries from the Asia Pacific. The country legalized medical marijuana at a federal level in 2016, and recently in 2019, the Australian capital Canberra became the countrys first city to legalize possession and cultivation of marijuana for adult use.However, marijuana for adult use still stands illegal at a federal level in the country. The new cannabis laws passed by the Australian government allowed the Australian Capital Territory (ACT) to cultivate and possess marijuana for adult use.

The growth in the demand for cannabis has further propelled the need to come up with better product delivery systems as well as sustainable product strains. This need has, in turn, led to many companies coming up with R&D, which extensively investigates several genetic improvement strategies for cannabis. For instance, Hydro apothecary partnered with Segra in March 2018 to incorporate plant tissue propagation into the cannabis plant production process, to help increase the yield of healthy and better variant plants to serve the growing industry for medical and recreational cannabis. While looking into this genetic improvement, companies have been extensively venturing into the development of wide yielding varieties, better harvestability and market quality, a reliable low THC content, and improved herbicide tolerance of the cannabis crop. The high yield potential of cannabis arises from several factors that are both genetic and agronomic in nature.

Major Cannabis Product Types

The Cannabis flower segment dominated all the product types of cannabis. The dominance of this segment is mainly attributable to its maximum availability, and its method of delivery as smoking or vaping the cannabis flower has a quicker effect and is preferred for fast-acting relief by medical and recreational cannabis consumers.

The market for concentrates is projected to grow at the highest CAGR during the forecast period. This is due to their ease in usage, and their versatility in the method of delivery, such as dabbing, ingestible oils, and tinctures. Also, along with ingestion, concentrates can offer cleaner, smoother, and less odiferous hits than the flower.