Commodities

Google Ad

Timing is everything, in a week where Australia's balance of trade was a surprise deficit and U.S. Attorney General Jeff Sessions moved to dismantle American Medical Marijuana, Australia moved to become the world's biggest supplier.

Medical cannabis

Australia's Health Minister Greg Hunt told reporters on Thursday that Australia plans to become just the fourth nation in the world to legalize medical marijuana exports. The move in the U.S. where Sessions rescinded the so-called Ogden Memorandum of 2009 that instructed federal prosecutors not to pursue cases against medical marijuana patients and distributors who complied with state laws.

“Previous nationwide guidance specific to marijuana enforcement is unnecessary and is rescinded, effective immediately,” Sessions told the U.S. attorneys based in all 50 states in a letter Thursday.

The letter came the same day Hunt talked to reporters. The inverse move should nicely put Australia ina prime position to take a large piece of the global medical marijuana market. A report in 2016 estimated the medical marijuana market will surpass US$55 billion by 2025.** That number could be much higher today. Australia's aim is to be number one.

"We would like to be, potentially, the world's number one medicinal cannabis supplier," Hunt said.

Australian marijuana related companies soared on the news

  • Cann Group Ltd. $CAN +35% 
  • AusCann Group Holdings  $AC8 +53.5%
  • Bod Australia $BDA +38%

**Note symbols are on the ASX

Meanwhile in the U.S. Sessions decision has been met by derision and anger. Since his move the only legal protection now for medical marijuana growers, processors, sellers and users is a temporary measure sponsored by Rep. Dana Rohrabacher (R-Calif.) and Rep. Earl Blumenauer (D-Ore.) prohibiting the U.S. Department of Justice from using government funds to target them.

** GrandView Research Medical Marijuana Potential Market Projections

The global medical marijuana market is expected to reach a value of USD 55.8 billion by 2025, according to a 2016 report by Grand View Research, Inc.

The global medical marijuana market size was valued at USD 11.4 billion in 2015 and is projected to grow with CAGR of 17.1% during the forecast period. The market is experiencing growth due to rising awareness regarding various medical applications such as pain management, appetite enhancement, and reducing eye pressure.

Medical marijuana is mainly classified into two types, namely Cannabis Sativa and Cannabis indica, which originate from the countries of the western hemisphere and central & south Asian region respectively. The growing number of countries legalizing the use of medical marijuana in various parts of this world is one of the key factors driving the usage rate of cannabis in therapeutic applications.

Attribute

Details

Base year for estimation

2015

Actual estimates/Historical data

2013 - 2015

Forecast period

2016 - 2025

Market representation

Revenue in USD Billion & CAGR from 2016 to 2025

Regional scope

North America, Europe, ROW

Country scope

U.S., Canada, France, Italy, Switzerland, Israel, Belgium, Croatia, Finland, Netherlands, Portugal, Czech Republic, Estonia

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization

Source: Australian, Grand Vew Research

From a sunburnt country...

Log in to comment

Google ads