The global cannabis market is expected to double in size over the next five years, and will be worth approximately $146.4 billion by 2025, according to a report by Grand View Research.
Revenue growth is largely expected to increase during the adoption of cannabis-based medicine as a treatments for conditions such as chronic pain, cancer, and epilepsy. The cannabis industry is now gaining traction worldwide due to high demand and the increasing legalisation of recreational and medicinal marijuana.
Cannabis companies have been cropping up world wide, over the last few years, and Australia is no exception. Early movers are already positioning themselves to capitalise on the growing market, which could become worth more than $1.2 billion in Australia alone.
A major issue currently facing the industry is the difficulty involved in prescribing cannabis to patients. Consumers who wish to acquire the drug must go through a specialist appointment and then wait anywhere up to four weeks for approval.
While the process may be challenging, experts say that the government’s current model makes it considerably easier to harvest patient data, allowing medical researchers and regulators to better understand the needs of Australian patients. Fortunately, the TGA has also introduced an online access system, allowing patients in some states to submit an application to the government and the TGA at the same time.
Although the Australian cannabis industry has only been around for about three years it has still managed to make substantial headway in the sector.
However, the legal framework around medicinal cannabis is still in a state of flux, and regulations can vary widely from state to state.
Profitability in the Green
Cannabis products that have been made available in the Australian market have been mostly limited, and have been restricted to CBD oils and tinctures. Doctors are becoming increasingly amenable to the prescription of medicinal cannabis products and it seems that they are still generally uneasy about the drug itself.
However, product innovation in the industry—such as the growing overseas edibles market—is still expected to be a significant driver of future business opportunities. This will ensure that there is always a strong market demand for Australian cannabis products, regardless of how the legislation proceeds into the future.
While some states have been mulling over the possibility of decriminalisation, the federal government would still need to get on the band wagon, meaning that it may be some time before Australia sees the complete legalisation of cannabis products.
There are still plenty of opportunities for local cannabis stocks to expand, both from international sales of Australian made medicinal products, and valuable research projects which are proving the viability of marijuana as a treatment option.
What remains to be seen is which state will emerge at the top of Australia’s commercial cannabis heap.