Recreational Cannabis - South Africa

South Africa

Revenue in the Recreational Cannabis market market in South Africa is forecasted to reach US$209.30m in 2024.
The revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 1.82%, leading to a market volume of US$229.10m by 2029.
When compared globally, the United States will generate the most revenue (US$24.96bn in 2024).
Concerning total population figures, per person revenues of US$140.80 are generated in 2024.
South Africa's recreational cannabis market is burgeoning, with a growing number of local entrepreneurs entering the industry and driving innovation.

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

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Analyst Opinion

The Recreational Cannabis market in South Africa is experiencing significant growth and development as the country moves towards a more progressive stance on cannabis legalization.

Customer preferences: Consumers in South Africa are increasingly seeking out recreational cannabis products for various reasons, including relaxation, socialization, and potential health benefits. With the growing global trend towards cannabis acceptance, there is a shift in consumer attitudes towards the plant, leading to an increase in demand for recreational cannabis products.

Trends in the market: One of the notable trends in the South African recreational cannabis market is the emergence of a variety of product offerings to cater to different consumer preferences. From traditional dried flower products to edibles, concentrates, and topicals, manufacturers are diversifying their product lines to meet the evolving demands of consumers. Additionally, there is a noticeable trend towards the use of technology in the production and distribution of cannabis products, ensuring quality and consistency for consumers.

Local special circumstances: South Africa's unique cultural and social landscape plays a significant role in shaping the recreational cannabis market. The country has a long history of cannabis use for traditional and medicinal purposes, which is now being embraced in the recreational market. Furthermore, the diverse population in South Africa contributes to a wide range of preferences and consumption habits, influencing the types of products that are popular in the market.

Underlying macroeconomic factors: The changing regulatory environment and increasing acceptance of cannabis in South Africa are key macroeconomic factors driving the growth of the recreational cannabis market. As regulations become more favorable towards cannabis legalization, businesses are seizing the opportunity to enter the market and capitalize on the growing demand. Additionally, the economic potential of the cannabis industry, including job creation and tax revenue generation, is attracting investment and further fueling market growth.

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.