Medical Cannabis - Australia | Statista Market Forecast

The revenue in the Medical Cannabis market market in Australia is forecasted to reach US$356.70m in 2024.
This revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 4.58%, leading to a market volume of US$446.30m by 2029.
When compared globally, the United States is expected to generate the highest revenue (US$14.53bn in 2024).
In terms of per capita figures, in 2024, US$3.48k in revenue is generated per person.
Australia is witnessing a growing trend in the medical cannabis market, with increasing acceptance and investment in research and development.

Definition:
The Medical Cannabis market encompasses products derived from the cannabis plant specifically used for medical purposes. These products may include dried flowers, oils, tinctures, capsules, and topicals. Depending on the regulations in each country or state, these products are available through medical dispensaries, pharmacies, and/or online platforms. They may be consumed in various ways such as smoking, vaporizing, ingesting, or applying topically.

Structure:
The Medical Cannabis market involves cannabinoid-based medicine without marketing authorisation. These unlicensed medicines are supplied through health systems, prescribed by doctors, or used as Active Pharmaceutical Ingredients (API). The API is manipulated and/or compounded by a magistral pharmacy to prepare a cannabinoid-based medicine without marketing authorisation. The Medical Cannabis market includes various forms of cannabis such as flowers, oils, capsules, and topicals.

Additional information:
Market values represent the revenues generated by retail prices paid to vendors, either directly or through distribution channels (excluding VAT). Reported market revenues include spending by patients (B2C), healthcare facilities (B2B), and governments (B2G).

Cannabinoid-based medicine not holding marketing authorisation containing THC
Cannabinoid-based medicine not holding marketing authorisation containing CBD

Cannabinoid-based medicine holding marketing authorisation containing THC
Cannabinoid-based medicine holding marketing authorisation containing CBD

The Medical Cannabis market in Australia has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Australia are increasingly turning to medical cannabis products as an alternative or complementary treatment to traditional pharmaceuticals. There is a growing demand for natural and plant-based remedies, driving the popularity of medical cannabis among consumers. Additionally, patients are becoming more educated about the potential benefits of medical cannabis in managing various health conditions.

Trends in the market: One of the key trends in the Australian Medical Cannabis market is the expanding product offerings and availability. As regulations around medical cannabis continue to evolve and become more lenient, more companies are entering the market and introducing a variety of products to cater to different patient needs. This trend is further fueling the growth of the market and attracting new consumers.

Local special circumstances: Australia has been proactive in legalizing and regulating the use of medical cannabis, creating a conducive environment for market growth. The country has established a robust framework for licensing and production of medical cannabis, which has encouraged investment and innovation in the sector. Additionally, Australia's climate is suitable for cultivating cannabis, leading to the emergence of local producers and suppliers.

Underlying macroeconomic factors: The growing acceptance and legalization of medical cannabis globally have had a positive impact on the Australian market. As more countries recognize the medical benefits of cannabis and legalize its use, the demand for medical cannabis products is expected to increase. This global trend is likely to drive further growth in the Australian market as well, creating opportunities for domestic companies to expand internationally.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on companies' revenues, funding values and global consumer survey data. Revenues include retail, sales and taxes.

Modeling approach / Market size:

Market sizes are determined by a Top-Down approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use financial reports, third-party data. Next, we use relevant key market indicators and data from country-specific associations such as tobacco spending per capita, medical product spending per capita, consumer spending and consumer spending for recreation purposes, population. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, S-Curve function, ARIMA time series model and exponential curve function.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. GCS data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Health market, in a PDF format.

Cannabis or marijuana, the psychoactive drug from the cannabis plant is growing in popularity around the globe, both for recreational and medicinal uses. While there are many countries that have legalized cannabis in some capacity for medical purposes, only a handful have done so for recreational use. Even though cannabis is not federally legal in the United States, the combined legal states represent the largest market in the world. After the U.S., Canada, which legalized cannabis nation-wide in 2018 represents the next largest market. In 2021, a new coalition government was formed in Germany that indicated that the legalization of cannabis was on their agenda. Germany would be the largest legal adult-use market in Europe and would act as a test case for other countries on the continent considering the merits of legalization.