Cannabis - Industry - Asia Pacific Market, Share and Trends 2023-2028

Summary of Cannabis

The APAC region encompasses a diverse array of cultural and regulatory environments that will each impact cannabis commercialization differently. Pioneering countries like Australia and Thailand have established medical cannabis programs, with recreational use under consideration. Elsewhere– governments are cautiously weighing the pros and cons of cannabis reform.

Regardless of the pace of change – long-term indicators point to substantial opportunities emerging across APAC in the years ahead. With nearly two-thirds of the world’s population and some of the fastest growing economies, the region represents an market with massive untapped potential. As public attitudes continue liberalizing and regulations evolve, early movers stand to gain significant first mover advantages. Asia Pacific’s regional cannabis market size is projected to grow from $14.31 billion in 2023 to $40.07 billion by 2029, at a CAGR of 17.77 % during the forecast period.

For businesses seeking to engage APAC– a nuanced understanding of the local landscape will be paramount. Regulatory compliance, cultural sensitivity and community engagement will all factor heavily into building trusted brands and partnerships. Medical cannabis likely provides the clearest on-ramp currently, with research collaborations and import/export opportunities available.

Looking further ahead, recreational and wellness segments show promise as policy reform spreads. Consumer packaged goods companies may find opportunities in infused products, while established agricultural firms are well-positioned for cultivation. As the industry matures, ancillary technology and services will also be in high demand.

While challenges remain – the long-term outlook for cannabis in APAC is bright. Those who enter markets strategically and responsibly can establish themselves as valued partners in realizing the industry’s vast economic and social benefits across the region. Continued monitoring of evolving regulations and community priorities will help navigate this emerging space successfully.

Recent Trends and Insights

Thailand took a major step in 2021 by legalizing medical cannabis and cannabis derivatives, becoming the first country in Southeast Asia to do so. This has spurred industry formation with over 30 cannabis companies now registered. Exports of medical products are expected to ramp up.

Australia continues expanding its medical cannabis program. The number of prescriptions has doubled annually and new cultivators are coming online to meet growing demand. Recreational legalization remains under discussion.

South Korea recently began exploring medical cannabis and just approved its first clinical trial. As a global biotech leader, Korea brings significant research potential to APAC. Other nations are advancing more cautiously. Malaysia and the Philippines have signaled openness to medical use but have yet to establish formal programs. Regulations vary widely across states in India as well.

Consumer interest in wellness applications of cannabidiol (CBD) is rising across the region. This non-intoxicating compound could represent an initial gateway segment before broader reforms.

Regional cannabis companies are forming to engage Asian markets, including partnerships between North American multi-nationals and local operators. Early movers are well-positioned as regulations evolve.

Product Insights

Oils and tinctures remain the dominant format utilized, appealing for their precise dosing capabilities. Leading products are often CBD-dominant to address pain and anxiety indications.

Flower-based medicines have seen increased uptake in Australia and Thailand as clinical experience has grown. Standardized cultivation practices are improving quality and consistency.

Topicals containing cannabidiol or other non-psychoactive compounds are gaining traction for applications like sports recovery and skin care. This avoids issues around intoxication.

Interest is rising around the potential for medical cannabis extracts and isolates in novel delivery formats. This includes vaporization, edibles, and beverages – though regulations vary significantly by market.

Countries like South Korea and Singapore with advanced biotech sectors show promise for cannabinoid-based pharmaceutical development. Clinical research partnerships will be important to validate new medical uses.

As APAC programs mature and public awareness grows – demand is likely to diversify beyond current leading categories. Innovations around precision dosing, new delivery methods and integrating cannabis into traditional remedies all represent opportunities.

Key Companies

Some major players within this vast domain of industry are

• Aurora Cannabis
• Cronos Group
• Tilray
• Canopy Growth Corporation
• Aphria Inc
• Medical Marijuana Inc.
• GW Pharmaceuticals
• Khiron Life Sciences
• BOL Pharma
• Chemesis International

Regional Analysis

Australia presents a relatively open environment with an established medical program and discussions around adult-use. Proximity to North America and cultural similarities are advantages.

Thailand’s recent legalization positions it as the gateway to Southeast Asia, though neighboring countries vary significantly in their approaches. Cultural sensitivity will be important. In Northeast Asia – South Korea’s research focus and Japan’s conservative environment pose both opportunities and challenges that require nuanced understanding.

India’s federal structure and varying state-level regulations create a complex patchwork to navigate. Medical cannabis has the most immediate potential. Across APAC, major population centers like China, Indonesia, and the Philippines represent immense markets but also regulatory uncertainties that demand close monitoring.

For the time being – most companies are likely to focus on medical applications and engage in partnerships or imports rather than attempting domestic cultivation in all but the most receptive environments. Those demonstrating responsible practices and community engagement stand to build goodwill as reforms progress.

The diversity of the APAC region means “one-size-fits-all” approaches will not succeed long-term. Those demonstrating cultural sensitivity and a willingness to localize stand the best chance of sustainable participation in cannabis emerging across Asia Pacific’s many individual landscapes.

Market Segmentation

By Type:

• Medical cannabis
• Recreational cannabis
• Hemp-derived products (CBD, fiber, seeds, etc.)
• Cannabis-infused products (edibles, beverages, topicals, etc.)

By End user:

• Patients seeking medical treatment.
• Adult consumers for recreational use
• Industrial users (hemp-based products for various industries)
• Wellness and lifestyle consumers (CBD products)

By Vertical:

• Cultivation and growing operations
• Processing and extraction facilities
• Retail and dispensaries
• Ancillary services (consulting, software, packaging, etc.)
• Research and development

By Country:

• China
• India
• Japan
• Indonesia
• South Korea
• Australia

Our Methodology

We have offered a well-founded review of Asia Pacific’s regional cannabis market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.