The CBD market in Australia has been growing in recent years, driven by increasing consumer interest in the potential health benefits of CBD products. However, the market is still relatively small compared to other countries such as the United States, where it has experienced rapid growth in recent years.
In Australia, CBD products are considered to be a therapeutic good and are regulated by the Therapeutic Goods Administration (TGA). In order to be legally sold, CBD products must be included in the Australian Register of Therapeutic Goods (ARTG) and be manufactured in accordance with the Good Manufacturing Practice (GMP) standards. In November 2021 TGA has reclassified Low-dose CBD (up to 150mg/day) as Schedule 3 drug which can be available over the counter
Despite this, CBD products are becoming increasingly available in Australia, and are sold in a range of forms including oils, capsules, and topicals. The most common form in which CBD is consumed is oil, as it is considered the most effective way to take it. Moreover, as more research on CBD's potential benefits becomes available, consumer interest and awareness of the product has been increasing.
According to a report by the Hemp Industry Association of Australia (HIAA), the Australian CBD market was valued at around AUD$22 million in 2018 and is expected to reach around AUD $40 million by 2021. However, this is still small compared to the US market, which is estimated to be worth around $22 billion by 2022.
Despite the small size of the market, the industry is expected to continue growing as consumer awareness of CBD and its potential benefits continues to increase. Additionally, a number of major retailers are now stocking CBD products in their stores, which is helping to make them more widely available to consumers.
However, the market also faces some challenges. One of the main challenges is the lack of clear guidelines and regulations regarding the quality and safety of CBD products. This makes it difficult for consumers to know which products are safe to use and can lead to confusion and mistrust of the industry. Additionally, There are concerns that some products are being marketed with false or misleading information about their benefits.
In conclusion, the CBD market in Australia has been growing in recent years, driven by increasing consumer interest in the potential health benefits of CBD products. However, the market is still relatively small compared to other countries, and it faces challenges related to the lack of clear guidelines and regulations regarding the quality and safety of products. Nonetheless, as consumer awareness of CBD and its potential benefits increases, the industry is expected to continue growing.