Global Australia Legal Cannabis Market by Application (Industrial Use, Medical Use), by Product Type (Hemp, Marijuana) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Australia's legal cannabis market was valued at USD 41.2million in 2020. It is expected to grow at a compound annual rate of 32.7% between 2021 and 2028. The market is driven by increasing consumer awareness about the health benefits of cannabis and legalization of marijuana. According to the Australian Institute of Health and Welfare in July 2020, 41.0% of Australians favored legalization of cannabis in 2019. This was almost double the support that was registered in the 2007 survey. Due to growing pain and chronic disease burden, there was also an increase in the demand for pain management therapies.

The demand for medical marijuana will rise due to rising cases of opioid poisoning. This, in turn, will increase cultivation to meet these growing consumer needs. The Therapeutic Goods Administration published data in June 2020. It found that around 14 hospitalizations and 150 emergency department visits per day were related to opioid use. Three people died from opioid poisoning.

The legal framework for medicinal cannabis in Australia is still being developed and closely regulated. In 2016, medicinal marijuana was legalized at the federal level of Australia. In September 2019, Canberra, Australia became the first city to legalize personal cultivation and recreational marijuana possession. The federal law still makes recreational marijuana possession illegal in Australia. Australian Capital Territory (ACT), under new cannabis regulations, was able to cultivate and possess marijuana for adult use.

Australia has shown a high level of support for cannabis legalization, compared to other countries in the Asia Pacific. The Canberra legalization allowed for the possession and cultivation of up to 50g of dried marijuana. Many other countries have also considered legalizing recreational marijuana. This will, in turn, be positive for the growth of Australia's legal cannabis market over the forecast period. The overall market's growth is also being supported by the increasing number of legal marijuana companies. Numerous companies have been listed on the Australian Stock Exchange (ASX), applied for cultivation licenses and are being purchased or funded by major players.

The increasing use of cannabis for medical purposes is driving market growth. This is due to the shift in customers towards cannabis-based treatments instead of traditional methods. The COVID-19 pandemic in Australia has also negatively affected the legal cannabis market. It has caused a nationwide lockdown that disrupted product manufacturing and has placed import/export restrictions, which has adversely affected the overall revenues. Cann Group Limited, for example, saw a 72.5% decline in FY2020 compared with FY2019. This was primarily due to the government-imposed lockdown, disruptions to supply chains, and COVID-19 pandemic.

COVID19 Australia: A 19.4% drop in revenue growth between 2019 and 2020

The growing need to curb the country's illicit drug market is expected to lead to legalization of cannabis. The Australian Institute of Health and Welfare published data in July 2021 that cannabis was one of the most commonly used illegal drugs in Australia. Its use increased from 10.4% in 2016 to 11.6% in 2018. According to participants in the Ecstasy and Related Drugs Reporting System and Illicit Drug Reporting System, cannabis can be easily obtained in Australia. In 2018, cannabis accounted for 50.0% national illicit drug seizures. Legalization of illicit drugs can result in a loss of revenue, as more people switch to legal channels.

Product Type Insights

In 2020, the highest revenue share was 84.9% for the hemp segment of the Australian legal cannabis market. This growth can be attributed to rising incidences of sleep disorders such as epilepsy, and the increased consumption of hemp-based products like hemp CBD and supplements due to their many health benefits. According to Epilepsy Action Australia data, approximately 250,000 Australians are currently suffering from epilepsy. The demand for hemp-based building materials is expected to rise due to the increasing use of these products in various industries and the growing demand for green buildings as a result of environmental pollution.

The market for legal cannabis in Australia is expected to grow the fastest during the forecast period. As people move towards legalizing medical marijuana, and decriminalizing it in Australia, the black market is expected to decline. Market growth will also be boosted by the potential for cannabis legalization to increase government earnings through taxation. According to Guardian News and Media Limited's April 2018 article, legalization of cannabis for recreational purposes will raise USD 3.6 Billion in Australia over the next four years. This is based on a 25% excise tax and GST. Due to the low cost of marijuana and its easy availability across the country, customers will be more inclined to use it for recreational purposes.

Application Insights

In 2020, the highest revenue share was 83.2% for the industrial segment of the Australia legal cannabis market. Segment growth is being supported by the growing demand for hemp fibers, oil, and personal care industries. The demand for varnishes and oil paints, printing chemicals, solvents, fuel, glue, chain-saw lubricants, coatings, and other products is expected to rise. To reduce pollution and deforestation, consumers are using cannabis in a variety of non-textile uses. Rodale Institute published an article in November 2016 stating that hemp can reduce the amount of plastic that ends up in the ocean and in landfills.

The market for legal cannabis in Australia is expected to grow the fastest during the forecast period. This is due to growing awareness about the health benefits of cannabis products and support from the Australian government regarding medical cannabis usage. Australia's Commonwealth Government, State and Territory governments have all passed regulations allowing easy access to medicinal marijuana products. Further, the medical application was sub-segmented into applications such as anxiety, chronic pain and sleep disorder.

Market Share Insights & Key Companies

Many international and local players dominate the market for legal cannabis in Australia. Local companies are focused on expanding their customer base, geographical presence, and exports to the country. International players invest in local businesses to improve their market position. In January 2021, Aurora Cannabis, Inc., announced a strategic partnership with MedReleaf Australia. MedReleaf became the exclusive supplier to Aurora's CanniMed and MedReleaf brands in Australia through the five-year supply contract. Listed below are some of the most prominent players in Australia's legal cannabis market:

• Cann Group Ltd.

• Zelira Therapeutics

• AusCann Group Holdings Pty Ltd.

• Bod Australia

• THC Global Group Limited

• Althea Group Holdings Limited

• Ecofibre Limited

• MGC Pharmaceuticals Ltd.

Up Market Research published a new report titled “Australia Legal Cannabis Market research report which is segmented by Application (Industrial Use, Medical Use), by Product Type (Hemp, Marijuana), By Players/Companies AusCann Group Holdings Pty Ltd, Bod Australia, Ecofibre Limited, Althea Group Holdings Limited, Zelira Therapeutics, MGC Pharmaceuticals Ltd, Cann Group Ltd, THC Global Group Limited”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Australia Legal Cannabis Market Report Segments:

The market is segmented by Application (Industrial Use, Medical Use), by Product Type (Hemp, Marijuana).

Australia Legal Cannabis Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Australia Legal Cannabis Market

Overview of the regional outlook of the Australia Legal Cannabis Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Australia Legal Cannabis Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Australia Legal Cannabis Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Industrial Use

                2. Medical Use

                1. Hemp

                2. Marijuana

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Australia Legal Cannabis Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
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Reasons to Purchase the Australia Legal Cannabis Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.