Australia’s Legal Cannabis Market Projects Significant Growth

LOS ANGELES- Australia’s legal cannabis market is poised for substantial expansion, with projections estimating growth from USD 126.32 million in 2024 to USD 420.33 million by 2030, reflecting a compound annual growth rate (CAGR) of 22.16% .

This anticipated growth is underpinned by evolving regulatory frameworks and increasing consumer demand for low-dose cannabidiol (CBD) products. The Therapeutic Goods Administration’s (TGA) reclassification of low-dose CBD (up to 150 mg/day) as a Schedule 3 substance potentially allows for over-the-counter (OTC) access without a prescription .

Despite this regulatory advancement, no CBD products have yet received OTC approval. However, the shift indicates a governmental intent to broaden access to non-psychoactive cannabis applications, encouraging pharmaceutical innovation and investment in the sector.

The market’s growth is further supported by an increase in medical cannabis prescriptions, particularly for conditions such as chronic pain, anxiety, and sleep disorders. Domestic production is gaining momentum, with companies investing in localized cultivation and processing infrastructure to enhance supply chain efficiency and reduce reliance on imports .

However, the industry faces challenges, including high production costs associated with pharmaceutical-grade cannabis and limited insurance coverage for cannabis-based therapies. These factors contribute to higher retail prices, potentially limiting patient access.