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Australian Cannabis Outlook 2022: Positive Signs for Sales and Patient Numbers
The Australian cannabis scene continues to show signs of significant growth. Where will that outlook take the market in 2022?
Click here to read the previous Australian cannabis outlook.
Acceptance and understanding are building in Australia as the country's cannabis industry continues to gain legitimacy. Will 2022 be the year it reaches full mainstream status?
The Australian cannabis market enjoyed a significant period of growth in 2021, with increases in both cannabis spending and the number of patients registered in the country. Additionally, companies in the country continued to explore new opportunities both at home and in friendly markets overseas.
Here the Investing News Network provides a snapshot of market expectations in the new year, and what some experts are predicting for cannabis in Australia.
Australian cannabis outlook 2022: Politics still dictating larger picture
The political landscape in Australia has left the cannabis industry in a position of steady yet slow-paced incremental growth, especially in terms of patient access.
While patient access continues to expand, investors wonder when exactly the country will come forward with a platform for adult-use legalisation similar to Canada, which legalised cannabis for recreational use in 2018.
The legalisation of adult-use cannabis in Australia has proven to be a tricky subject. While public support continues to mount for the drug at large, it’s unclear when the rules will significantly change.
A few provinces in the nation have decriminalised cannabis in some form, but there is no wider policy program.
Australian cannabis outlook 2022: Rising numbers projected to continue
Overall, 2021 proved to be a critical year for the adoption and consumption of medical cannabis in Australia. As for 2022, all signs point to continued increases in numbers for this space.
At the end of 2021, there were just shy of 100,000 patients registered in Australia, according to Australian data firm FreshLeaf Analytics’ H2 2021 report on the cannabis market.
When it comes to sales numbers, the domestic market reported sales of AU$230 million in 2021. For 2022, the researchers expect that number to continue to go up.
“FreshLeaf expects this impressive growth trajectory to keep pace through 2022 with sales reaching over AU$400M,” FreshLeaf Analytics states in the report.
The report also notes that an uptick in monthly Special Access Scheme B approvals following regulation changes for low-dose CBD items is a good sign for 2022. The updated CBD rules came into play in early 2021.
“2022 will see continued transformation of the industry characterised by wider acceptance of medicinal cannabis, improved access for patients, an increase in R&D investment, and industry players looking to new markets in which to expand,” the researchers said.
Australian cannabis outlook 2022: Investor takeaway
The cannabis market has undergone multiple ups and downs as the volatile investment space continues to grow out of its emerging status and into a sophisticated, thriving space.
Australia is no different, and its cannabis market continues to emerge with very significant growth markers.
It’s always difficult to project the results of a new year, but Australia may be staring down another 12 months of progress and development both domestically and abroad.
“2022 will see continued transformation of the industry including improved patient access, the emergence of new markets, and an increase in R&D investment,” the team at FreshLeaf said.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
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Bryan is a Senior Editor with INN. After graduating from the Langara journalism program he did some freelance reporting with community newspapers in British Columbia. He initially wrote about the life science space for INN and now spends his time covering the marijuana market, from Canadian LPs to US-based companies, and the impact of this sector on investors.
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