The legal cannabis market in Australia, New Zealand and the rest of Oceania is set to be worth $US1.55 billion by 2024, according to new research from leading cannabis market intelligence and strategic consultancy firm, Prohibition Partners.
The findings come from The Oceania Cannabis Report: Second Edition, the latest addition to the Prohibition Partners’ suite of regional cannabis market reports.
The Oceania Cannabis Report: Second Edition is the most extensive review of the cannabis sector in Australia, New Zealand and surrounding islands. In line with Prohibition Partners’ other market-leading reports, this newest addition includes detailed market value forecasts, examines potential commercial and regulatory developments, and offers in-depth analysis of the countries and companies that are operating at the cutting edge of the Austalian, New Zealand and surrounding islands cannabis industries.
Key insights from the report include:
- The legal cannabis market is expected to be worth US$1.55 billion by 2024 in Australia, New Zealand and the surrounding islands, with medicinal cannabis accounting for approximately 40% of the market.
- Since the first edition of the Oceania Cannabis Report, two additional territories have legalised adult-use cannabis: the Australian Capital Territory (ACT) and Guam.
- Australia is expected to account for 79% of the region’s overall market by 2024, due to a comparably larger population and higher household disposable income than New Zealand and the islands actoss the region.
- The most transformative legislative change is emanating from the Australia Central Territory, Guam, New Zealand and the Northern Mariana Islands — while Australia is committing to further cannabis science research on a federal level.
- The next five years are expected to see a falling reliance on imported cannabis products, leading to a sizable increase in domestic revenue generated by the regional cannabis industry.
Prohibition Partners’ Group Managing Director Stephen Murphy said:
“Since our last report on the region, we have seen significant advancement in the Australian and New Zealand cannabis sector. Guam and the Australian Capital Territory have both chosen to legalise recreational cannabis use. Additionally, the New Zealand government announced plans to hold a referendum on recreational cannabis legalisation, which will take place later this year. Australia now boasts over thirty publicly listed cannabis companies on the Australian stock exchange — considerably more than the number currently listed across Europe.”
“In recent months, the region has been faced with great challenges. At the end of 2019 and into 2020, Australia was rocked by devastating wildfires, which claimed in excess of 11 million hectares of land across the country. Australia holds ambitions to become a central player in the global cannabis sector, and the success of this industry could come to play a major role in helping counteract the economic impact of these wildfires.”
“Concerning the global coronavirus (COVID-19) pandemic, it is too early to fully understand the impact that the virus will have on the emerging cannabis industry, especially in Australia. We have seen a double-digit fall in cannabis stock prices on the Australian stock exchange; however, at present there appears to be no significant disruption to the industry’s production and supply lines.”
“How these challenges are affecting and shaping the cannabis industry across the region is explored further in our new report. The Oceania Cannabis Report: Second Edition presents an in-depth analysis on the future potential of the regional cannabis market, its commercial opportunities, regulatory developments, and the major players who are pushing the boundaries of the space.”