Australia Cannabis & Products Market- Trend Analysis & Forecasts

Australia Cannabis & Products Market Overview:

Australia’s regulated cannabis industry, legalized in 2016, has grown rapidly to a market value estimated at around US$ ** million in 2024, supported by more than one million patients receiving over 80,000 monthly prescriptions. Domestic production rose from ** kg in 2022 to more than ** kg by 2024, yet imports still reached about ** tonnes annually, reflecting unmet demand. Retail pricing has fallen sharply, with flower dropping to nearly AU$ 3.30 per gram by mid-2025, signaling both scale expansion and margin pressure across the supply chain.

Primary Areas/ Elements of Research & Analysis

The report provides comprehensive and valuable insights into the supply and demand dynamics of the Australia cannabis & products market. Below are the variables considered and analyzed in the report:
• Supply-demand trends, market growth, and trade
• Market structure, conduct, and performance analysis
• Historical and forecasted market size (value)
• Trade analysis (export & import), including key partners, quantities, values, and price trends
• Supply chain mapping, pricing, and regulatory framework
• Competitive landscape profiling of key players
• Factors influencing market performance, including sustainability trends

Market Growth Factors

Growth is driven by rising medical acceptance, as nearly ** million cannabis product units were sold in just the first half of 2024 compared with ** million units in late 2023. Regulatory clarity and increased prescribing also support the market, with more than 80,000 prescriptions issued monthly. Domestic cultivation capacity has expanded nearly threefold over two years, while forecasts suggesting the market could surpass US$ ** million by 2032 motivate investment. Evolving patient preferences toward high-THC flower formats, which dominate sales volumes, further accelerate revenue expansion.

Market Restraints & Challenges

Despite strong adoption, pricing pressure poses a key risk, with flower prices collapsing from roughly AUD 6 per gram in 2023 to about AU$ ** by 2025, threatening smaller cultivators. Regulatory limitations persist, as most products remain unapproved medicines relying on special access pathways, limiting formal clinical validation. Continued reliance on imports — still at least ** tonnes annually — leaves the market vulnerable to supply disruptions, while expanding prescription volumes raise concerns over compliance and clinical oversight within a sector handling millions of product units yearly.

Market Segmentation

By source, hemp dominated early CBD demand but marijuana-based high-THC products now lead prescriptions for over a million patients as production rose past ** thousand kg. By type, dried flower overtook concentrates as prices fell to nearly AU$ 3.30 per gram, driving most of the ** million-unit sales in early 2024. By derivative, THC-dominant formats are fastest growing, while CBD and balanced products retain niche clinical roles across the 80,000+ monthly prescriptions. By application, medical use captures nearly all market value, while industrial hemp and emerging recreational segments grow modestly. By sales, domestic demand absorbs most output, although exports in low single-digit tonnes are rising slowly as Australia moves toward becoming a regional supplier.

Competitive Landscape

Competition includes domestic firms scaling vertically from cultivation to dispensing, such as companies managing GMP facilities capable of producing tens of thousands of kilograms annually. Falling prices — as low as AUD 3.30 per gram — are driving consolidation pressure, pushing under-capitalized firms toward mergers or exits. Established operators benefit from quality compliance, brand trust and access to growing telehealth networks serving more than a million patients, while new entrants aim to capitalize on niche formats such as oils, high-THC extracts or targeted therapeutic products.

Outlook

By 2032, Australia’s cannabis market is projected to reach US$ ** million under current growth patterns, and potentially exceed US$ ** billion if export capacity expands alongside domestic substitution of at least ** tonnes of imports. With monthly prescription volumes above ** thousand and annual unit sales now nearing five million, scope for scaling supply, product innovation and regulatory evolution remains high. Although price compression will persist, rising production exceeding ** thousand kg annually indicates improving affordability, deeper access and long-term entrenchment of cannabis in Australian healthcare system.

Scope of the Report:
• Historical Years: 2018-2024
• Base Year: 2025
• Forecast Period: 2026-2032
• Segments Covered:

By Source (Marijuana and Hemp)

By Type (Flowers/ Buds and Concentrates)

By Cannabis Derivative (THC-Dominant, CBD Dominant, and Balanced THC & CBD)

By Application (Medical, Recreational, and Industrial)

By Sales (Domestic Sales and Exports)
• Companies Profiled: The market players include, Cann Group Limited, AusCann Group Holdings Pty Ltd, Bod Australia, Zelira Therapeutics, Ecofibre Limited, Althea Group Holdings Limited, Little Green Pharma, MGC Pharmaceuticals Ltd, Elixinol Global, Botanix Pharmaceuticals, Incannex, THC Global Group Limited, Epsilon Healthcare, Highlands cannabis, and Others.

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