Cannabis - South Africa

South Africa

South Africa is expected to see a revenue of US$308.20m in the Cannabis market by 2024.
The revenue is forecasted to display an annual growth rate (CAGR 2024-2029) of 1.19%, leading to a market volume of US$326.90m by 2029.
When compared globally, the United States is anticipated to generate the highest revenue of US$42.98bn in 2024.
In terms of per person revenues in 2024, US$0.10k are generated concerning the total population figures.
South Africa sees a growing trend in the Cannabis market with increasing investment in cannabis-related financial commodities.

Key regions: United States, Canada, Netherlands, Germany, Thailand

Market

Region

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Analyst Opinion

The Cannabis market in South Africa has seen significant growth and development in recent years.

Customer preferences: Consumers in South Africa are increasingly turning to Cannabis products for both medicinal and recreational purposes. There is a growing acceptance and demand for alternative forms of treatment and relaxation, driving the popularity of Cannabis-based products in the market.

Trends in the market: One notable trend in the South African Cannabis market is the increasing number of companies entering the industry to meet the rising demand. This has led to a wide variety of products being offered to consumers, ranging from oils and tinctures to edibles and topicals. Additionally, there is a noticeable shift towards more sophisticated cultivation techniques and product formulations to cater to different consumer preferences.

Local special circumstances: South Africa's unique climate and growing conditions present both opportunities and challenges for the Cannabis market. The country's diverse geography allows for the cultivation of a wide range of Cannabis strains, contributing to the production of high-quality products. However, regulatory restrictions and licensing requirements have posed obstacles for businesses looking to fully capitalize on the market potential.

Underlying macroeconomic factors: The evolving regulatory landscape surrounding Cannabis in South Africa plays a significant role in shaping the market dynamics. As laws and attitudes continue to change, there is a growing sense of optimism among industry players and investors. Economic factors, such as job creation and tax revenue generation, are also driving the expansion of the Cannabis market in the country.

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.