Australia Cannabis Market Analysis


  • Type: Common Disease Area
  • Published : April 2021
  • Region: APAC
  • Country: Australia
  • Report ID : 4159

  • Format: PPT, PDF

Australia Cannabis Market: Segmented by Drug Class (Adult Use, Medical (Chronic Pain, Anxiety, Inflammation, Sleep Disorder, & Others), B2B Channels)- Growth, Trends, And Forecasts (2019 – 2028)


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 Australia’s 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 government’s special access scheme. This factor could potentially restrain the future revenue growth of Australia’s 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 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.

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.

1. Australia Cannabis Market Overview………………………………..
A. Market Size
2. Market Growth Drivers………………………………………………………………….
A. Rise in Prevalence of Cannabis Addiction
B. Growing R&D Investments and Reimbursement Policies
3. Major Cannabis Product Types………………………………………………….
A. Flowers
B. Concentrates
C. Others (Capsules, Topicals, Edibles, and Beverages)
4. Cannabis Market Segmentation………………………………………
A. Drug Class
I. Adult Use
II. Medical
a. Chronic Pain
b. Anxiety
c. Inflammation
d. Sleep Disorder
e. Others
III. B2B Channels
5. Cannabis Major Drugs Market Share………………………………….
A. Market Analysis, Insights and Forecast – By Revenue
6. Competitive Landscape…………………………………………………………………
A. Major Players
B. Products in Pipeline
7. Key Company Profiles………………………………………………………………….
A. AusCann Group Holdings Pty Ltd Company overview, Product & Services, Strategies & Financials
B. Bod Australia Company overview, Product & Services, Strategies & Financials
C. Zelira Therapeutics Company overview, Product & Services, Strategies & Financials
8. Healthcare Policies and Regulatory Landscape…………………………………….
A. Policy changes and Reimbursement scenario
9. Factors Driving Future Growth………………………………………………………….
A. New Trends and Development of Cannabis market
B. Future Opportunities
10. Conclusion

Market Segmentation

By Application:

Based on the application, the market has been segmented into adult use, medical, and B2B sales. The medical application segment dominated 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 dominated 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 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.

Major Players

The market is dominated 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 Australian legal cannabis market are 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.

Research Methodology

Insights10 will provide you reports within 10 key parameters which are:

  1. Market overview
  2. Market growth drivers & restraints
  3. Epidemiology or disease type
  4. Market segmentation
  5. Market share
  6. Competitive landscape
  7. Key company profiles
  8. Healthcare policies & regulatory framework
  9. Reimbursement scenario
  10. Factors driving future growth

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The top-down approach mainly used for new product forecasting and bottom-up approach is used for demand estimation of any product for different countries summed up to form total market. We are able to round off insights and build stronger forecasts because we always do both these methods and triangulate the final numbers.

The study on the market covers the analysis of the leading geographies such as North America, Europe, Asia-Pacific, and Africa for the period of 2020 to 2028. The qualitative analysis covers the industry landscape and trends, market opportunities, competitive landscape and policy and regulatory scenario and the quantitative analysis covers different market estimates and forecasts.

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