Recreational Cannabis - Australia

Revenue in the Recreational Cannabis market market in Australia is forecasted to reach US$1.88bn by 2024.
The revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 3.35%, leading to a market volume of US$2.21bn by 2029.
When compared globally, the United States is expected to generate the highest revenue (US$24.96bn in 2024).
In terms of per person revenues in relation to the total population, US$872.60 is generated in 2024.
Australia's Recreational Cannabis market is experiencing rapid growth, attracting both local entrepreneurs and international investors seeking opportunities in the emerging industry.

Definition:
The Recreational Cannabis market encompasses products derived from the cannabis plant that are used for leisure or personal enjoyment. These products can include dried flowers, oils, edibles, tinctures, and topicals. The availability of these products is subject to the regulations in each country or state, and they can be obtained from dispensaries, retail stores, or online platforms. Consumption methods vary, and can include smoking, vaporizing, eating, or applying topically.

Structure:
The Recreational Cannabis market is a subset of the broader cannabis market, which also includes medical and pharmaceutical cannabis as well as CBD products. The Recreational Cannabis market specifically pertains to products used for personal enjoyment, as opposed to the medical and pharmaceutical markets which focus on products used for treating medical conditions. The market includes various forms of cannabis such as flowers, concentrates, edibles, and topicals.

Additional information:
The 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 consumers (B2C).

Cannabis containing THC used for recreational purposes
Extracts
Dried cannabis
Edibles
Beverages

Medical cannabis
Pharmaceutical cannabis
CBD Products

The Australian Recreational Cannabis market has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Australia are increasingly favoring high-quality and diverse cannabis products, including edibles, oils, and topicals. They are also showing a preference for products that are sustainably sourced and produced. Additionally, there is a growing demand for personalized and tailored cannabis experiences, driving innovation in the market.

Trends in the market: One noticeable trend in the Australian market is the shift towards more stringent regulations and quality control measures. This is leading to an increase in the number of licensed producers and retailers, ensuring that products meet safety and quality standards. Another trend is the rising popularity of medical cannabis products, with more patients turning to cannabis for therapeutic purposes.

Local special circumstances: Australia's unique geography and climate present both challenges and opportunities for the cannabis market. The country's vast land and diverse ecosystems offer ideal conditions for cultivating cannabis, leading to the emergence of local growers and suppliers. However, strict regulations and varying laws across different states can create complexities for businesses operating in the market.

Underlying macroeconomic factors: The growing acceptance and legalization of cannabis for both medical and recreational use globally are influencing the Australian market. This trend is driving investment and interest from international players looking to capitalize on the expanding market. Additionally, changing attitudes towards cannabis and an increasing awareness of its potential benefits are shaping consumer behavior and fueling market growth in Australia.

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.