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The potential for the establishment of a kangaroo industry in Western Australia based on meat and skins was examined by assessing the likely acceptability of the products of the industry and their market potential. Available evidence indicated that kangaroo meat would be acceptable to consumers from a nutritional and quality point of view. Markets for skins are largely in the export arena and traditional markets are likely to be constrained by the actions of the animal welfare lobby. There is some potential for developing new export outlets for skins. It is concluded that farming of kangaroos is unlikely to be viable in at least the foreseeable future and that any industry, if established, will be based on harvesting animals from the wild under existing management programmes.