A new report published by market research firm, Reportlinker, has predicted that the Asia Pacific cannabis market will be worth over $22.87 billion USD by 2027.
The report analyzes data from the International Cannabis and Ministry of Food and Drug Safety, the Centre for Narcotics Training and the Council of Scientific Research’s Indian Institute of Integrative Medicine. It found that while the Asia Pacific cannabis market was worth $2.3 billion USD in 2017, it will be worth over $22.87 billion USD by 2027.
The report links the industries growth to several things, including the widespread legalisation of medical cannabis. Over the past few years, medical cannabis was legalised in:
- Australia – 2016
- New Zealand – 2017
- South Korea, Thailand, and the Philippines – 2019
During that time, major clinical trials were taking place, including a major government-approved study into CBD-based medicine. Epidiolex, in Japan, as well as several government-funded trials in Australia.
The report also links the growth of the industry to several international companies who expanded into the Asia Pacific region. Many of these companies have since set up cultivation facilities, manufacturing plants and subsidiaries. This includes Canada’s Canopy Growth and MYM Nutraceuticals.
From 2020 to 2027, the report estimates the Asia Pacific cannabis market will grow with a Compound Annual Growth Rate (CAGR) of 28.6%. Throughout the Asia Pacific region, the report also predicts that the market for cannabis concentrates will expand quickly. In 2019, THC-dominant concentrate market was the largest, but the market for CBD-dominant concentrates is growing the fastest. The rescheduling of CBD oil in Australia would also grow this market.
Yahoo also commented on the news, stating:
The growth of the Asia Pacific cannabis market is attributed to increasing research on medical cannabis and the rising cannabis industry in Southeast Asia.
Australia’s cannabis industry itself is projected to be worth $1.5 billion by 2024.