Recreational Cannabis - Australia

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 3.29%, 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$0.87k 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.

Key regions: Spain, South Africa, Europe, Netherlands, Australia

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Analyst Opinion

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.

Methodology

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.