Australia Legal Cannabis Market To Reach $815.1 Million By 2033

Australia Legal Cannabis  Market Growth & Trends

The Australia legal cannabis market size is expected to reach USD 815.1 Million by 2033, registering a CAGR of 20.3% from 2025 to 2033, according to a new report by Grand View Research, Inc. Factors such as a growing patient population, cannabis legalization, government initiatives, and the presence of local and foreign players in the country contribute to market growth. For instance, according to the data published by the Penington Institute in 2022, approximately 250,000 medicinal cannabis prescriptions were approved up to June 2022.

The marijuana industry is booming due to the increasing adoption of marijuana for medical and adult use. Marijuana has only been legalized for medical use in Australia and is anticipated to be legalized for recreational use as well. Through these legalizations, the government can try to curb the illicit marijuana market and focus on gaining substantial revenue from taxes levied on cannabis products. Moreover, the legalization and adoption of cannabis and the launch of new cannabis products are anticipated to increase market growth. For instance, in September 2023, MediPharm Labs Corp., a pharmaceutical company, launched new GMP cannabis products, such as Beacon inhalation cartridges and medical cannabis oil, in the Australian healthcare market.

The number of patients seeking medical marijuana for therapeutic benefits has increased. Moreover, the number of companies operating in the medical marijuana market is growing. Many companies have also been listed on the Australian Stock Exchange (ASX). As the market evolves, small local players and entrepreneurs increase in the Australian legal cannabis market. These players apply for cultivation licenses and are being funded or acquired by major players. For instance, in October 2023, Vitura Health Limited, a provider of medicinal cannabis products and digital health solutions, acquired Doctors On Demand, a telehealth service company, to enter new service and product verticals.

Moreover, growing awareness among people regarding the therapeutic applications of cannabis and the launch of new cannabis-based products drive market growth. For instance, according to data published by the Penington Institute in 2022, TGA has given 70,000 medicinal cannabis approvals for chronic pain in 2021. Moreover, medicinal cannabis is approved for sleep issues, anxiety, and cancer pain.

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Australia Legal Cannabis Market Report Highlights

• Based on the source type, the hemp segment dominated the market for legal cannabis in Australia and accounted for the highest revenue share of 67.1% in 2024. 

• Based on the derivatives, the CBD segment had the largest market share of 63.5% in 2024. The growth is attributed to the legalization of low-dose CBD products by TGA; even though these products have been legalized, they have yet to be approved by the Australian Register of Therapeutic Goods (ARTG). 

• The industrial application segment dominated the market and accounted for the largest revenue share of 63.6% in 2024. The construction, personal care, food and beverage, automotive 

• The recreational segment is expected to grow at the fastest CAGR during the forecast period. The growth is driven by changing public perceptions, legislative developments, and increasing consumer demand.

Australia Legal Cannabis Market Segmentation

Grand View Research has segmented the Australia legal cannabis market report based on sources, derivatives, and end use:

Australia Legal Cannabis Sources Outlook (Revenue, USD Million, 2021 - 2033)

• Marijuana

  • Flower

  • Oil and Tinctures

• Hemp

  • Hemp CBD

  • Supplements

  • Industrial Hemp

Australia Legal Cannabis Derivatives Outlook (Revenue, USD Million, 2021 - 2033)

• CBD

• THC

• Others

Australia Legal Cannabis End Use Outlook (Revenue, USD Million, 2021 - 2033)

• Medical

  • Cancer

  • Chronic Pain

  • Depression and Anxiety

  • Arthritis

  • Diabetes

  • Glaucoma

  • Migraines

  • Epilepsy

  • Multiple Sclerosis

  • AIDS

  • Amyotrophic Lateral Sclerosis

  • Alzheimer

  • Post Traumatic Stress Disorder (PTSD)

  • Parkinson's Disease

  • Tourette

  • Others

• Recreational

• Industrial

List of Key Players in Australia Legal Cannabis Market

• Cann Group Limited

• Zelira Therapeutics

• AusCann Group Holdings Ltd.

• Bod Australia

• Althea Group

• ECOFIBRE

• Botanix Pharmaceuticals

• EPSILON

• Little Green Pharma

• Incannex