APAC Legal Cannabis Market Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025-2030

APAC Legal Cannabis Market valued at USD 17 Bn, driven by legalization in Australia, Thailand, South Korea, and demand for medical products like oils and edibles.

The APAC Legal Cannabis Market is valued at USD 17 billion, based on a five-year historical analysis. This growth is primarily driven by increasing legalization for medical use in major markets such as Australia, Thailand, and South Korea, as well as rising consumer awareness regarding the therapeutic benefits of cannabis. The market has seen a surge in demand for various cannabis products, including oils and edibles, as more countries in the region adopt progressive cannabis policies and invest in regulatory infrastructure.

Key players in this market include Australia, Thailand, and New Zealand, which dominate due to their favorable regulatory environments and established frameworks for cannabis cultivation and distribution. Australia leads with its advanced research and development initiatives, while Thailand has become a pioneer in Southeast Asia by legalizing medical cannabis, attracting significant investments and fostering local production. Additionally, the region is witnessing increased investment in farming, research, and CBD-based wellness products, particularly among young urban populations.

In 2023, the Australian government implemented the Narcotic Drugs Amendment (Medicinal Cannabis) Regulations 2023, issued by the Australian Government Department of Health and Aged Care. This regulatory framework streamlines the licensing process for cannabis cultivation and distribution, enhances compliance requirements, and mandates robust product safety standards, thereby encouraging more businesses to enter the legal cannabis market and supporting overall industry growth.

APAC Legal Cannabis Market Segmentation

By Product Type:

The product type segmentation includes various forms of cannabis products available in the market. The subsegments are Flower Buds, Concentrates, Edibles, Oils, Dissolvable/Powders, Topicals & Creams, and Other Product Types. Among these, Flower Buds and Oils are particularly popular due to their versatility and ease of use, catering to both medical and recreational consumers. The market is also seeing increased demand for edibles and topicals, driven by consumer preference for alternative delivery formats and wellness applications.

By Compound:

The compound segmentation categorizes cannabis products based on their chemical composition. The subsegments include THC-dominant, CBD-dominant, and Balanced THC and CBD products. THC-dominant products are favored for their psychoactive effects, while CBD-dominant products are increasingly sought after for their therapeutic benefits without the high, appealing to a broader audience. Balanced THC and CBD products are gaining traction among consumers seeking both therapeutic and mild psychoactive effects.

APAC Legal Cannabis Market Competitive Landscape

The APAC Legal Cannabis Market is characterized by a dynamic mix of regional and international players. Leading participants such as Althea Group Holdings Limited (Australia), Cann Group Limited (Australia), Little Green Pharma Ltd (Australia), Medlab Clinical Ltd (Australia), Botanix Pharmaceuticals Ltd (Australia), Neurotech International Ltd (Australia), Avata Biosciences (Australia), Green House Thailand (Thailand), PTT Public Company Limited (Thailand), AeroFarms Asia-Pacific (Singapore), MMJ PhytoTech Limited (Australia), THC Global Group Limited (Australia), MedReleaf Australia, Cannatrek Ltd (Australia), Stemcell United Limited (Singapore) contribute to innovation, geographic expansion, and service delivery in this space.

APAC Legal Cannabis Market Industry Analysis

Growth Drivers

Increasing Legalization:

The legalization of cannabis for medical use is gaining momentum across APAC countries. As of future, countries like Thailand and Australia have implemented frameworks allowing medical cannabis use, with Thailand reporting over 10,000 registered patients. This shift is supported by a growing number of legislative proposals in nations such as Japan and South Korea, which are projected to introduce similar regulations, potentially increasing the market size significantly.

Rising Demand for Medicinal Cannabis:

The demand for medicinal cannabis is surging, driven by an increase in chronic health conditions. In future, the APAC region is expected to see a 15% rise in prescriptions for cannabis-based treatments, particularly for pain management and anxiety disorders. This trend is supported by a growing body of clinical research, with over 200 studies published in the last year, highlighting the therapeutic benefits of cannabis, thus fueling market growth.

Expansion of Cannabis-Related Businesses:

The cannabis industry is witnessing rapid expansion, with over 500 new cannabis-related businesses established in the APAC region in future alone. This includes cultivation, distribution, and retail sectors, which are projected to create approximately 20,000 new jobs. The influx of investment, estimated at $1 billion in future, is fostering innovation and competition, further driving market growth and consumer accessibility to cannabis products.

Market Challenges

Regulatory Uncertainties:

Regulatory uncertainties pose significant challenges to the APAC legal cannabis market. As of future, only 5 out of 20 APAC countries have established comprehensive cannabis regulations, leading to confusion among businesses and consumers. This lack of clarity can deter investment, with an estimated $500 million in potential funding remaining untapped due to fears of changing regulations and compliance issues, hindering market development.

Stigma Associated with Cannabis Use:

The stigma surrounding cannabis use remains a considerable barrier in the APAC region. Despite increasing legalization, public perception is slow to change, with surveys indicating that 60% of the population in countries like Japan still view cannabis negatively. This societal stigma can limit market growth, as potential consumers may hesitate to engage with cannabis products, impacting overall sales and acceptance in the healthcare community.

APAC Legal Cannabis Market Future Outlook

The APAC legal cannabis market is poised for transformative growth, driven by increasing consumer acceptance and evolving regulatory landscapes. As more countries adopt progressive cannabis policies, the market is expected to expand significantly. Innovations in product development, particularly in cannabis-infused goods, will cater to diverse consumer preferences. Additionally, partnerships with healthcare providers will enhance the credibility and accessibility of cannabis products, fostering a more robust market environment in the coming years.

Market Opportunities

Development of Cannabis-Infused Products:

The market for cannabis-infused products is rapidly expanding, with an estimated 30% growth expected in future. This includes edibles, beverages, and wellness products, appealing to a broader consumer base. Companies investing in this segment can capitalize on the increasing demand for alternative health solutions, potentially generating significant revenue streams.

Collaboration with Healthcare Providers:

Collaborating with healthcare providers presents a substantial opportunity for market growth. By future, partnerships with over 100 hospitals and clinics are anticipated, facilitating research and education on cannabis benefits. This collaboration can enhance product credibility and encourage patient acceptance, ultimately driving sales and fostering a more informed consumer base.