Australia’s medical cannabis industry is on a remarkable growth trajectory, with revenues projected to double from approximately USD $600 million in 2024 to over USD $1.2 billion by 2028, according to the Global Cannabis Report: 5th Edition by Prohibition Partners. This surge positions Australia to potentially outpace leading European markets, such as Germany, which is expected to reach similar revenue figures within the same timeframe.
Factors Driving Growth
Several key factors contribute to this robust expansion:
- Increased Patient Access: The number of medical cannabis prescriptions has risen significantly, with 2.87 million units sold in the first half of 2024 alone, up from 1.68 million units in the latter half of 2023. This uptick is largely due to heightened public awareness and a growing number of healthcare professionals prescribing cannabis-based treatments.
- Telehealth Services: The proliferation of telehealth clinics has streamlined patient access to medical cannabis, reducing previous bottlenecks. However, this rapid growth has prompted regulatory scrutiny to ensure responsible prescribing practices.
Domestic Production and International Trade
Australia’s domestic cannabis production is also on the rise, reaching 26.59 tonnes in 2023—a 6.8% increase from the previous year. Despite this growth, the country continues to rely heavily on imports, particularly from Canada, which supplied 80% of the 42.1 tonnes imported in 2023.
On the export front, Australia is making notable strides. Exports increased by 37.1% in 2023 to 2.07 tonnes, with Germany (839 kg), the UK (640 kg), and New Zealand (587 kg) emerging as top destinations.
Regulatory Landscape and Future Outlook
The rapid expansion of Australia’s medical cannabis market has sparked discussions about broader regulatory reforms, including the potential legalization of adult-use cannabis. In August 2023, the Australian Greens introduced the ‘Legalising Cannabis Bill 2023,’ proposing measures such as allowing adults to cultivate up to six plants and establishing regulated cannabis cafes. Despite initial public support, the bill was rejected in May 2024 due to health risk concerns highlighted by medical associations.
In summary, Australia’s medical cannabis sector is experiencing unprecedented growth, driven by increased patient access, technological advancements in healthcare delivery, and expanding international trade. While challenges persist, the industry’s future appears promising, with the potential to become a global leader in the medical cannabis market.
