Australia Legal Cannabis Market Report and Forecast 2025-2034

According to this report, the Australia legal cannabis market size reached approximately USD 88.10 million in 2024. Aided by the increasing acceptance of cannabis for medical use, supportive government policies, and the growing demand for cannabis-based products, the market is projected to grow at a CAGR of 26.8% between 2025 and 2034 to attain around USD 850.5 million by 2034.

The Australia legal cannabis market, which began with the legalisation of medical cannabis in 2016, has rapidly developed into a significant sector, largely driven by both domestic and international demand for regulated cannabis products. The market is evolving, and as medical cannabis use expands and regulatory frameworks mature, the market is set to witness substantial growth. This is further bolstered by the increasing awareness surrounding cannabis' therapeutic properties and its applications in managing a variety of conditions such as chronic pain, anxiety, and sleep disorders.

One of the key drivers for the growth of the Australia legal cannabis market is the government’s progressive stance toward cannabis regulation. Australia legalised medical cannabis use in 2016 under the Therapeutic Goods Administration (TGA), which allowed patients with specific conditions to access cannabis-based treatments through licensed providers. Since then, the government has introduced several reforms that have facilitated the legal use of cannabis for medicinal purposes, including streamlining access to cannabis products and reducing the regulatory burden on medical professionals and patients.

The government has also established frameworks to support research into the therapeutic potential of cannabis, with a focus on exploring its applications for various medical conditions. These efforts are crucial for building confidence in the safety and efficacy of cannabis products among both consumers and healthcare professionals. As a result, the medical cannabis market in Australia has seen a rapid expansion, with a rising number of patients being prescribed cannabis products for a variety of ailments.

In addition to medical cannabis, there is growing speculation around the potential future legalisation of recreational cannabis use. Many experts predict that recreational cannabis legalisation could be a significant contributor to the Australia legal cannabis market expansion in the coming years.

The medicinal cannabis segment of the Australia legal cannabis market has seen a significant increase in demand, driven by the growing awareness of cannabis' therapeutic properties. Cannabis has shown potential in treating a range of medical conditions, including chronic pain, epilepsy, multiple sclerosis, cancer-related symptoms, and mental health conditions, such as anxiety and depression. This expanding range of applications is encouraging both healthcare providers and patients to explore cannabis-based treatments as viable options.

As per the Australia legal cannabis market analysis, cannabis oils and tinctures are among the most widely used forms of medical cannabis, with patients opting for these products for their ease of use and dosage control. Cannabis-based products, such as creams, balms, and lotions, are also gaining popularity, particularly for their potential in alleviating pain and inflammation when applied topically.

The growing body of clinical research supporting the therapeutic benefits of cannabis is further driving the expansion of the medicinal cannabis market in Australia. As more research becomes available and more medical professionals become familiar with cannabis-based treatments, the market is expected to continue to expand, with an increasing number of patients turning to legal cannabis products for relief.

Evolving consumer perception of cannabis has shaped the Australia legal cannabis market dynamics. While cannabis was once viewed primarily through the lens of recreational use, growing evidence of its medicinal benefits has shifted the narrative. As public awareness about cannabis' therapeutic potential has increased, more Australians are turning to legal cannabis products to manage health conditions, particularly those that have not responded well to traditional treatments.

As consumer knowledge continues to expand, the demand for diverse cannabis products is also growing. For instance, the rise of cannabis-infused wellness products, such as CBD oils, gummies, and beverages, has been driven by consumers seeking non-intoxicating options that offer the benefits of cannabis without the psychoactive effects associated with traditional marijuana. This trend reflects a broader shift towards wellness and self-care, with consumers seeking natural alternatives for mental and physical well-being.

Innovation plays a crucial role in the Australia legal cannabis market development. As more companies enter the market, there is a concerted effort to create high-quality, innovative cannabis-based products that meet the needs of diverse consumers. This includes the development of new delivery methods, such as vaporised cannabis, and advancements in the formulation of cannabis-infused products, including edibles, beverages, and skincare treatments.

The growing demand for cannabis-based products with minimal psychoactive effects has also led to the emergence of CBD-based products, further boosting the Australia legal cannabis market revenue. Cannabidiol (CBD), a non-psychoactive compound found in cannabis, has gained popularity as a wellness ingredient due to its potential benefits for managing conditions like stress, anxiety, and chronic pain. The growing availability of CBD products in various forms, such as tinctures, capsules, and topicals, is expected to continue to drive the expansion of the market, particularly in the health and wellness segment.

Looking ahead, the Australia legal cannabis market is poised for continued growth, driven by the expansion of the medical cannabis sector, greater consumer awareness, and ongoing innovation in cannabis product development. With the potential for recreational cannabis legalisation and further regulatory support, the market is expected to experience significant momentum in the years to come.

As the industry matures, cannabis will continue to be integrated into the broader healthcare and wellness sectors, offering new opportunities for product development and market expansion. Whether through medicinal cannabis products or wellness-focused alternatives, the Australia legal cannabis market is set to become a key player in the global cannabis industry. With continued regulatory support and growing public acceptance, the future of the Australian cannabis market looks promising, with significant growth potential in both medical and non-medical segments.

Market Segmentation

The market can be divided based on type, product, distribution channel, and region.

Market Breakup by Type

• Medical Cannabis
• Recreational Cannabis

Market Breakup by Product

• Buds
• Oils
• Tinctures
• Others

Market Breakup by Distribution Channel

• Online
• Dispensaries

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia legal cannabis market. Some of the major players explored in the report are as follows:

• Cann Group Limited
• Elixinol Global Limited
• AussCann Group Holdings Ltd.
• Althea Group Holdings Limited
• Creso Pharma
• Others