What you need to know:

• Initiative has launched a dedicated website for Australia's fast-growing cannabis market.
• GM Sam Geer told Mi3 that at least 20 ASX-listed firms are preparing for major investment.
• He urged brands to start preparing for a $100bn opportunity now - or risk being left holding the roach.

Roll up

Mediabrands agency Initiative is forecasting sustained highs and continued strong growth for Australia's legal cannabis industry - with Australia currently the fastest growing medical cannabis market in the world and the fifth largest overall.

The agency has launched a new website and report - Cannabusiness - outlining the opportunities for marketers. Initiative GM Sam Geer told Mi3 brands need to get on-board with the movement now.

He points out that 42% of Australians support legalisation of recreational cannabis with more than 20 companies already listed on the ASX to help manage investment in the industry. Latecomers may therefore find themselves scrapping for the dog ends.

"We've been talking about the sector for the last nine months and not because it's a 'funny topic to chat about', but because in the next 10 years it is going to be a business that rivals major verticals in Australia," said Geer.

"There's opposition here now but we've seen support for legalisation edge toward 50% of the population over the last five years and read countless reports internationally about the financial and social benefits."

Initiative's new site claims cannabis could represent a $104 billion market by 2024, and suggests legalisation locally is only a matter of time. Geer said the agency is already in discussions with brands to gain early mover advantage as restrictions ease.

"It's not going to be for everyone, that's obvious, but there will be those brands who see the early opportunity to tie up with what is already an incredibly fast-growing movement," Geer said.

"The cannabis market is still restricted here but once those rules shift and the legal and casual use of weed enters the cultural zeitgeist, I think you'll see a flood of brands looking to be involved."

Internationally, brands such as ride-sharing service Lyft and fast food business Carl's Junior launched campaigns for International Cannabis Culture Day (April 20). 

Australian beer brand Young Henry's has also gotten in on the trend, creating its first-ever Hemp infused brew, while investment firm Cann Group recently invested $130m into a cultivation centre in Victoria.

Growth strategy

Geer suggested the cannabis sector's marketing strategy will be three-fold, with B2B and educational strategies the first step.

"It's going to be about creating an attitudinal change to gain further momentum and become the 'norm', so leaning on government-backed research to educate medical professionals on the benefits and instil confidence in prescribing the drug," Geer said.

"Then it gets interesting. As we've seen internationally, celebrities are all over this from an endorsement perspective and influencers have started to take the well-being route on social platforms."

Geer believes the second wave will come from the influencer market and also predicts a big push around the cannabis' benefits for mental health and wellbeing.

"That's where it will pick up a lot of mainstream attention and that's apparent from how it has been marketed internationally," Geer said.

"Will it eventually make it onto a traditional media? Yes, but that will be the third and last stop and by then there will be a real battle between the cannabis brands and a lot of established partnerships with other product categories," said Geer. "It'll be the $100bn tipping point."