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Report Overview: Australia Legal Cannabis MarketThe Australia legal cannabis market size was valued at USD 160.6 million in 2020 and is projected to expand at a compound annual growth rate (CAGR) of 41.9% from 2020 to 2026. 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 country’s 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. Residents of Canberra could now possess up to 50 grams of marijuana and cultivate two marijuana plants. Following the footsteps, many other territories are considering the legalization of marijuana for recreational purposes. This factor is anticipated to drive the market growth in Australia over the forecast period 2021-2027. Medical cannabis is legal in Australia on a prescription basis and the government has adopted a lenient approach towards medical users. Thus, the number of patients seeking medical marijuana has increased rapidly. Moreover, the number of companies operating in the legal medical marijuana market is also growing. Many of the companies have also listed on the Australian Stock Exchange (ASX). These players have started applying for cultivation licenses and are being funded or acquired by major players. However, if we compare market growth to the U.S., it is significantly low as guidelines laid down by the government on medical usage of marijuana are quite stringent. The country has also been unfair on hemp oil usage. Still accessing medical hemp oil in Australia is a complex and expensive process, as no hemp/Cannabidiol (CBD) products have yet been approved by Therapeutic Goods Administration (TGA). Hence, patients who want to use CBD-based products need to apply for the Australian government’s Special Access Scheme that provides CBD infused products to qualifying patients. This is one of the key factors impeding the market growth. Moreover, the rising illicit cannabis trade in Australia is also restricting growth. According to the Australian Institute of Health and Welfare, marijuana is used more frequently as compared to other drugs such as ecstasy and cocaine in the country. Also, obtaining marijuana is comparatively simpler in the country, owing to which the number of marijuana arrests has increased in the country. The institute stated that there was a rise of 30% in the number of marijuana arrests in 2018. This increasing illicit trade is also hampering the market growth.
Product Type Insights: Australia Legal Cannabis MarketBased on product type, the Australia legal cannabis market is classified into marijuana and hemp oil. Marijuana segment lead with a revenue share of 71.3%in 2019. It is further segmented into flower and oil. Marijuana flower lead the market in 2019 owing to the large population of cannabis smokers in Australia and high availability as compared to other product types. Moreover, the flower is a primary product and is used extensively by manufacturers for producing other products. However, the oil segment is anticipated to be the fastest-growing during the forecast period. Marijuana smoking produces a negative effect on the body, such as the production of phlegm, chronic cough, and respiratory diseases. Also, smoking is a social stigma and is not advisable for children. Owing to these negative effects, patients are inclining toward cannabis oil as it is free from the above side effects and more travel friendly.
Application Insights: Australia Legal Cannabis MarketBased on the application, the market has been segmented into adult use, medical, and B2B sales. The medical application segment lead with a revenue share of over 78.0% in 2019, owing to the growing awareness about medical cannabis products. Furthermore, the constant support from the Australian government regarding medical cannabis usage is further accelerating the growth. For instance, the State and Territory Governments and the Commonwealth Government in Australia have passed laws for easy access to medicinal cannabis products in the country. Medical application has further segmented into sub-applications such as chronic pain, anxiety, inflammation, sleep disorder, and others. Chronic pain lead the market in 2019, with a market value of USD 55.2 million. The increasing demand for plant-based therapeutics and the ill effects caused by opioid intake are the key factors driving the segment. Whereas, the B2B channel that mainly comprises of companies buying marijuana from cultivators to produce finished products such as pharmaceuticals, nutraceuticals, personal care, and cosmetics, is projected to witness the fastest growth. The increasing partnerships between cultivators and pharmaceutical companies for drug development and research is the key factor anticipated to further drive the growth.
Key Players & Market Share Insights: Australia Legal Cannabis MarketThe market is lead by many local and international players. The local companies are focusing on increasing their geographic presence, consumer base, and exports in the country. Moreover, many local players are entering into partnerships with pharmaceutical companies and are creating awareness among people about the medical benefits of these products. For instance, in January 2020, Althea Company Pty Ltd developed a web-based platform and app, Concierge, to educate healthcare professionals and patients about the benefits of cannabis. Moreover, the company in November 2018, received a license from the Australian Government’s Office of Drug Control for exporting medicinal cannabis products and extracts manufactured in the country. On the other hand, international players are investing in local companies to strengthen their market positioning. This rising competition is anticipated to create growth opportunities for the key players in near future. Some prominent players operating in the Australia legal cannabis market are:
Key companies Profiled: Australia Legal Cannabis Market Report
This report forecasts revenue growth at country level and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2026. For the purpose of this study, Trusted Business Insights, Inc. has segmented the Australia legal cannabis market report on the basis of product type and application:
- AusCann Group Holdings Pty Ltd
- Cann Group Ltd
- Bod Australia
- Zelira Therapeutics
- Althea Group Holdings Limited
- THC Global Group Limited
- MGC Pharmaceuticals Ltd
- Ecofibre Limited
Product Type Outlook (Revenue, USD Million, 2016 - 2026
- Hemp Oil
Application Outlook (Revenue, USD Million, 2016 - 2026)
- Adult Use
- Chronic Pain
- Sleep Disorder
- B2B Channels
Table of Contents Chapter 1 Methodology and Scope 1.1 Market Segmentation 1.2 Research Methodology 1.2.1 Information Procurement 1.3 Information or Data Analysis 1.4 Market Formulation & Validation 1.4.1 Australia Legal Cannabis Market: CAGR Calculation 1.5 List Of Secondary Sources 1.6 List Of AbbreviationsChapter 2 Executive Summary 2.1 Market Snapshot, Re | read more...