Australia’s Cannabis Products Industry Sees Surge in Growth and Investment
Australia’s cannabis industry has experienced a significant surge in growth and investment in recent years, with a growing number of companies entering the market and developing innovative products.
According to a report by investment bank, MKM Partners, the Australian cannabis industry is expected to reach a value of AU$2.5 billion by 2025, up from AU$40 million in 2018. This growth is driven by a combination of increasing demand for medical cannabis, advancements in technology, and a shift towards legalization and relaxation of regulations around the world.
One of the key drivers of growth in the Australian cannabis industry is the rising demand for medicinal cannabis products. In 2016, the Australian government legalised the prescription of medicinal cannabis for patients suffering from certain illnesses, including pain, nausea, and muscle spasticity. Since then, the number of patients accessing medicinal cannabis has increased significantly, driving demand for products such as dried cannabis, oil, and pills.
In response to this demand, a growing number of Australian companies are establishing themselves as manufacturers and distributors of medicinal cannabis products. Some of the key players in the market include AusCann Group Holdings, Cann Group, and Tasmanian Industrial Hemp.
The Australian cannabis industry is not only driven by medical demand, but also by consumer demand for recreational cannabis products. In recent years, a growing number of states in Australia have passed laws allowing the legalisation of recreational cannabis. For example, in November 2019, the state of Victoria legalised the possession, cultivation, and use of small amounts of recreational cannabis for adults.
This change in the law has led to a surge in investment in Australian cannabis companies focused on the development of recreational products. One such company is Australian Botanic. The company, which is developing a range of cannabis-based food and beverage products, has attracted significant investment from major investors and has partnered with several well-known brands in the food and beverage industry.
The Australian cannabis industry is also benefitting from significant investment from venture capital firms, private equity funds, and corporate investors. Some of the key investors in the industry include Aphria, Tilray, and Canopy Growth, all of which are global leaders in the cannabis industry.
The growth and investment in the Australian cannabis industry is also attracting international attention, with several multinational companies establishing partnerships and investments in the country. For example, in 2019, French pharmaceutical company, Sanofi, invested AU$10 million in Australian cannabis company, AusCann Group Holdings.
The future of the Australian cannabis industry looks bright, with a growing number of companies poised to enter the market and further drive growth. The industry’s growth is not only driven by demand for medical and recreational cannabis products, but also by a growing number of applications for hemp and cannabidiol (CBD) in industries such as pharmaceuticals, skincare, and construction.
In conclusion, the Australian cannabis industry has experienced a significant surge in growth and investment in recent years, driven by demand for medicinal cannabis products, advances in technology, and a shift towards legalization and relaxation of regulations around the world. As the industry continues to evolve, it is likely to provide significant opportunities for investors, businesses, and patients alike.