Key regions: United States, Canada, Netherlands, Germany, Thailand
The Cannabis market in Southern Africa has been experiencing a significant growth trajectory in recent years, driven by changing consumer preferences, evolving regulations, and unique local circumstances.
Customer preferences: Consumers in Southern Africa are increasingly seeking out alternative medicinal and recreational products, leading to a growing demand for cannabis-based goods. The shift towards natural remedies and the increasing acceptance of cannabis for health and wellness purposes have been key drivers of this trend. Additionally, the rising interest in sustainable and eco-friendly products has further fueled the demand for cannabis-derived goods in the region.
Trends in the market: In countries like South Africa and Lesotho, there has been a notable increase in the cultivation of cannabis for both domestic and international markets. South Africa, in particular, has made significant strides in legalizing the use of cannabis for medicinal purposes, opening up opportunities for local businesses to tap into this emerging market. The trend towards legalization and decriminalization of cannabis across the region is expected to further boost market growth in the coming years.
Local special circumstances: Southern Africa's unique climate and growing conditions make it well-suited for cannabis cultivation, presenting a competitive advantage for local producers. Countries like Lesotho have already established themselves as key players in the global cannabis market, leveraging their favorable growing conditions to produce high-quality cannabis products for export. Additionally, the presence of traditional knowledge and practices related to cannabis use in certain communities adds a cultural dimension to the market in Southern Africa.
Underlying macroeconomic factors: The economic potential of the cannabis industry in Southern Africa has not gone unnoticed, with governments recognizing the opportunity to stimulate economic growth and create jobs through the legalization and regulation of cannabis. By tapping into this market, countries in the region can diversify their agricultural sectors, attract foreign investment, and generate revenue through taxes and export earnings. The evolving regulatory landscape and increasing acceptance of cannabis are expected to drive further investment and innovation in the industry, positioning Southern Africa as a key player in the global cannabis market.
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.
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