Australia Legal Cannabis Market Size, Share & Trends Analysis Report By Source (Marijuana, Hemp), By Derivative (CBD, THC), By End-use (Medical, Recreational, Industrial), And Segment Forecasts, 2025 - 2030

Australia Legal Cannabis Market Growth & Trends

The Australia legal cannabis market size is expected to reach USD 540.6 million by 2030, registering a CAGR of 23.7% from 2025 to 2030, 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.

Australia Legal Cannabis Market Report Highlights

• The hemp segment dominated the market for legal cannabis in Australia and accounted for the highest revenue share of 67.1% in 2024. The marijuana segment is expected to grow at the fastest CAGR during the forecast period.
• The CBD segment held the largest market share of 63.5% in 2024. The THC segment is expected to grow at a lucrative CAGR during the forecast period.
• The industrial application segment dominated the Australia legal cannabis market and accounted for the largest revenue share of 63.6% in 2024. The recreational segment is expected to grow at the fastest CAGR during the forecast period.