Australia's Legal Cannabis Market to Witness Substantial Growth by 2034, CBD-Based Products Gain Popularity

The Australia legal cannabis market is growing rapidly, driven by increasing demand for regulated cannabis products and shifting perceptions around cannabis' therapeutic properties. Medical cannabis use has expanded, and government reforms have facilitated access to cannabis-based treatments. The market is expected to witness substantial growth, with the potential future legalisation of recreational cannabis use. Cannabis oils and tinctures are the most widely used forms of medical cannabis, with cannabis-based products gaining popularity for their potential in alleviating pain and inflammation.

Australia's legal cannabis market is experiencing explosive growth, driven by increasing demand for regulated cannabis products and shifting perceptions around cannabis' therapeutic properties. According to Future Market Insights Inc., the market is projected to surge from USD 148.4 million in 2025 to USD 1,997.3 million by 2035, fueled by a 30.1% CAGR [1].

The primary growth driver is medical cannabis, which is gaining popularity for its potential to alleviate chronic pain, anxiety, epilepsy, and cancer-related symptoms. Doctors and healthcare providers are showing greater openness to prescribing cannabis-based treatments, contributing to the expanding patient demographic, particularly among the aging population with chronic and degenerative conditions [1].

Regulatory advancements, including streamlined patient access schemes and the potential for broader legalization, are reshaping the market landscape. The government's support for medical cannabis and ongoing clinical trials are further bolstering the market's growth. For instance, the University of Sydney and other institutions are conducting trials to validate the efficacy and safety of cannabis therapies [1].

The market is segmented by source (marijuana, flower, oil & tinctures, hemp, supplements, industrial hemp), derivatives, and end-use (medical use for various conditions, recreational use, and industrial use). Cannabis oils and tinctures are the most widely used forms of medical cannabis, with products gaining popularity for their potential in alleviating pain and inflammation [1].

The cannabis testing technologies market, which supports the legal cannabis industry, is also experiencing significant growth. According to ResearchAndMarkets.com, the market grew from USD 1.99 billion in 2024 to USD 2.21 billion in 2025, with an expected CAGR of 10.54% reaching USD 3.64 billion by 2030 [2]. This growth is driven by expanding legal cannabis use, digitalization, strategic alliances, and regional expansion, particularly in the Americas.

The market is becoming increasingly competitive, with established pharmaceutical companies, medical pioneers, and emerging domestic growers vying for market share. Key players include Zelira Therapeutics, Bod Australia, Incannex Healthcare, MediPharm Labs Australia, and Creso Pharma [1].

In conclusion, Australia's legal cannabis market is poised for substantial growth, driven by medical demand, regulatory reforms, and technological advancements. As the market continues to evolve, it presents a promising opportunity for investors and financial professionals.

References:
[1] https://www.openpr.com/news/4112056/australia-s-legal-can-market-set-for-explosive-growth-poised
[2] https://finance.yahoo.com/news/cannabis-testing-technologies-market-report-094500136.html