South Africa’s Constitutional Court issued a landmark ruling in 2018 that deemed cannabis prohibition as it pertained to adult individuals to be unconstitutional. Part of the Court’s decision tasked lawmakers in South Africa with passing a cannabis policy modernization measure.
The 2018 decision in South Africa left many questions unanswered, including how much cannabis a person can cultivate and possess in a private setting. After a long delay, South Africa’s President signed a measure to codify the Court’s 2018 decision this week.
“President Cyril Ramaphosa has signed into law the Cannabis for Private Purposes Act (“CfPPA”). The CfPPA regulates the cultivation, possession, and use of cannabis by adults in a private setting.” The President’s office stated in a press release.
“The consequent regulatory reform enabled by the CfPPA will, amongst others, entirely remove cannabis from the Drugs and Drug Trafficking Act. This will further enable amendment of the Schedules to the Medicines and Related Substances Act and provide for targeted regulatory reform of the Plant Breeders Rights Act and the Plant Improvement Act, as well as other pieces of legislation that require amendment to allow for the industrialisation of the cannabis sector.” the press release also stated.
It is expected that South Africa will continue to work towards implementing comprehensive national recreational cannabis regulations and the launch of adult-use cannabis sales. For now, South Africa’s cannabis industry is similar to what is in place in Germany, with the most opportunities being found in the home cultivation, personal consumption device, and medical cannabis sectors.
A market projection from April 2024 determined that South Africa’s “formal cannabis industry has the potential to create up to 25,000 jobs and could be worth around R28 billion.”
A separate projection from Prohibition Partners in 2019 forecast the value of the South African medicinal cannabis market and the recreational cannabis market at R11 billion and R20 billion by 2023, respectively.
Statista lists the following information regarding South Africa’s emerging cannabis industry:
- South Africa is expected to see a revenue of US$308.20m in the cannabis market by 2024
- The revenue is forecasted to display an annual growth rate (CAGR 2024-2029) of 1.19%, leading to a market volume of US$326.90m by 2029
According to the “South African Cannabis/CBD Industry Landscape Report 2022” by ResearchAndMarkets.com, South Africa’s cannabis/CBD industry is expected to grow at a CAGR of 28.4% between 2022 and 2026.
A new report published by Research and Markets is projecting that the legal global cannabis market will be worth an estimated $125.4 billion by 2030. Research and Markets also recently published a report projecting that the global medical cannabis sector will be worth$82.5 billion by 2030.
“The global market for Legal Marijuana estimated at US$30.6 Billion in the year 2023, is projected to reach a revised size of US$125.4 Billion by 2030, growing at a CAGR of 22.3% over the analysis period 2023-2030.” Research and Markets stated in a press release.
“Oil & Tinctures, one of the segments analyzed in the report, is expected to record 23.4% CAGR and reach US$80.4 Billion by the end of the analysis period. Growth in the Flowers segment is estimated at 20.5% CAGR for the next 7-year period.” the researchers also stated.
he global cannabidiol (CBD) market was worth an estimated $7.6 billion in 2023 according to a previous market analysis by Market.us, and will climb to a projected $36.6 in value by 2033.
“Between 2023 and 2032, this market is estimated to register the highest CAGR of 27%.” the researchers stated.
“Because of its therapeutic benefits, there is a significant demand for CBD for health and wellness applications, which is the main reason driving the market. The increased acceptability and use of products as a result of government approvals is another important factor anticipated to increase the manufacturing of CBD-infused goods.” the researchers also stated.
The global cannabis edibles market is projected to reach $27.2 billion by 2030 according to a previous market analysis by Fairfield Market Research. For comparison purposes, the same researchers estimated that the global cannabis edibles market was worth $9.6 billion in 2022.
“This robust growth will be driven by a multitude of factors, including shifting consumer preferences away from smoking cannabis, and rising awareness of the health benefits associated with cannabis edibles.” Fairfield Market Research stated in a press release.
According to an analysis by New Frontier Data, cannabis consumers around the globe “spent an estimated $415 billion on high-THC cannabis in 2020” and that figure is expected to increase to to $496 billion by 2025.
“Much of the world has not yet legalized cannabis, and nearly all the demand resides in illicit or unregulated markets. In 2020, 94% of high-THC cannabis spend was in unregulated channels.” New Frontier Data states.
New Frontier Data has determined that sales of high-THC cannabis products through legal regulated outlets totaled $23.7 billion in 2020 and that legal sales are projected to reach $51 billion by 2025. New Frontier Data estimates that legal cannabis sales of adult-use cannabis “are projected to be double those of legal medical sales by 2025, despite the higher number of medical markets globally.”