Report Overview
The Global Australia Medical Cannabis Market size is expected to be worth around US$ 2676.8 Million by 2035 from US$ 781.6 Million in 2025, growing at a CAGR of 13.1 during the forecast period 2026-2035.
Australia’s medical cannabis market has emerged as one of the fastest-evolving healthcare sectors since the legalization of medicinal cannabis in 2016 under the Narcotic Drugs Amendment Act. The market is supported by a regulated framework overseen by the Therapeutic Goods Administration (TGA), enabling patient access through the Special Access Scheme (SAS) and Authorized Prescriber pathways. The growing acceptance of cannabis-based therapies for chronic pain, anxiety, epilepsy, and palliative care is driving increased prescription volumes across the country.
According to the TGA, medicinal cannabis approvals have increased substantially over recent years, while the Australian Institute of Health and Welfare (AIHW) reported that around 700,000 Australians (3.0% of the population aged 14 years and older) used cannabis for medical purposes during 2022–2023. Furthermore, more than one million patients had accessed medicinal cannabis products by early 2024. The market benefits from expanding physician awareness, increasing domestic cultivation capacity, and ongoing research into cannabinoid-based therapies. As regulatory pathways continue to mature and patient demand rises, Australia is positioning itself as a significant medical cannabis hub in the Asia-Pacific region.
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Key Takeaways
- The Australia Medical Cannabis Market was valued at US$ 718.6 Million in 2025 and is projected to reach US$ 2,676.8 Million by 2035, expanding at a CAGR of 13.1% during the forecast period.
- By source, the market is segmented into hemp and marijuana, with hemp dominating the segment, accounting for 54.1% of the market share in 2025.
- Based on derivative, the market is categorized into CBD, THC, and others. Among these, CBD emerged as the leading segment, capturing 56.1% of the total market share.
- By application, the market includes chronic pain, cancer, anxiety and depression, arthritis, epilepsy, and others.
- The chronic pain application segment held the largest share of the market, contributing 51.8% of total revenue in 2025, driven by growing demand for alternative pain management therapies.
Key Market Segments
- By Source
- Hemp
- Marijuana
- By Derivative
- CBD
- THC
- Others
- By Application
- Chronic Pain
- Cancer
- Anxiety and Depression
- Arthritis
- Epilepsy
- Others
Market Key Players
- Cann Group (Refinanced and debt-restructured in 2025)
- Zelira Therapeutics
- AusCann Group Holdings Ltd
- Bod Science
- Althea Group
- Little Green Pharma (Announced merger with Cannatrek in Jan 2026)
- Incannex Healthcare
- Vitura Health Limited (Formerly Cronos Australia)
- Bioxyne
- Green Farmers
- ECS Botanics
- Tasmanian Botanics
Market Dynamics
Driver
A major driver of the Australia medical cannabis market is the increasing patient demand for alternative treatments, particularly for chronic pain, anxiety, epilepsy, and cancer-related symptoms. The Therapeutic Goods Administration (TGA) has streamlined access pathways through the Special Access Scheme (SAS-B) and Authorized Prescriber programs, making medical cannabis more accessible to healthcare providers and patients. According to AIHW data, approximately 700,000 Australians used cannabis for medical purposes in 2022–2023, representing 3.0% of the population aged 14 years and older.
Additionally, chronic pain remains the leading indication for medicinal cannabis prescriptions, accounting for approximately 234,000 SAS-B approvals through 2023. The number of medicinal cannabis approvals has grown dramatically since legalization in 2016, reflecting broader physician adoption and patient acceptance. Improved awareness among clinicians and patients, coupled with evolving clinical evidence supporting cannabinoid therapies, continues to stimulate demand. As healthcare systems seek alternatives to opioid-based pain management, medicinal cannabis is increasingly viewed as a complementary therapeutic option in Australia.
Trend
One of the key trends shaping the Australia medical cannabis market is the transition from illicit or self-medicated cannabis use toward regulated, physician-prescribed products. AIHW data indicate that 22% of medical cannabis users were always prescribed by a doctor in 2022–2023, a substantial increase from only 1.8% in 2019. This shift reflects stronger regulatory oversight and improved healthcare access. Moreover, the expansion of telehealth and digital cannabis clinics has enabled patients in rural and remote areas to consult specialists and obtain prescriptions more conveniently. TGA data show that medicinal cannabis approvals have risen sharply since 2016, with over 963,000 approvals under the Authorized Prescriber pathway and 458,000 approvals under SAS-B by the end of 2023. The market is also witnessing diversification of products, including CBD oils, capsules, flower products, and balanced THC/CBD formulations. These developments are creating a more structured and patient-centric ecosystem while encouraging broader physician participation and product innovation.
Restraint
Despite strong growth prospects, the Australia medical cannabis market faces several restraints, including regulatory complexity, inconsistent state-level laws, and ongoing safety concerns. Medicinal cannabis products remain largely unregistered medicines requiring approval through TGA pathways, which can create administrative burdens for healthcare providers. Furthermore, Australia’s drug-driving laws vary between jurisdictions, with patients prescribed THC-containing products potentially facing legal consequences despite lawful medical use.
Regulatory agencies have also raised concerns regarding prescribing practices and patient safety. In 2024, the Australian Health Practitioner Regulation Agency (AHPRA) reported increasing oversight of medicinal cannabis prescribing due to concerns about inappropriate prescriptions and insufficient patient assessments. Research also indicates that evidence supporting cannabis use remains stronger for certain conditions than others, limiting broader clinical adoption. The lack of standardized clinical guidelines and long-term efficacy data may discourage some physicians from prescribing these therapies. Addressing these regulatory and safety challenges will be essential to ensure sustainable market growth while maintaining patient protection and clinical integrity.
Opportunity
Australia’s medical cannabis market presents significant opportunities through domestic cultivation, manufacturing expansion, and clinical research. The country’s favorable agricultural conditions and robust pharmaceutical regulations position it as a potential export hub for medicinal cannabis products in the Asia-Pacific region. As of 2025, Australia had dozens of licensed cultivators, manufacturers, and importers supporting an increasingly sophisticated supply chain. Simultaneously, the TGA continues to refine prescribing frameworks and product categorization systems to improve market efficiency. Research institutions and healthcare organizations are also increasing studies into cannabinoids for pain management, neurological disorders, and mental health conditions. According to published studies, medicinal cannabis approvals have expanded substantially since legalization, with more than 100,000–120,000 SAS-B approvals issued annually during 2021–2023. The growing evidence base may support future registration of additional cannabis-based medicines, improving reimbursement and physician confidence. As international demand rises and regulatory systems mature, Australia is well-positioned to strengthen its role as a global leader in medical cannabis innovation and export development.
Conclusion
The Australia Medical Cannabis Market is poised for substantial growth over the coming decade, driven by increasing patient acceptance, supportive regulatory frameworks, and expanding therapeutic applications. The market is projected to grow from US$ 781.6 Million in 2025 to approximately US$ 2,676.8 Million by 2035, registering a robust CAGR of 13.1% during the forecast period. Rising demand for cannabis-based treatments for chronic pain, neurological disorders, and mental health conditions continues to support market expansion.
Australia’s well-regulated healthcare system, overseen by the Therapeutic Goods Administration (TGA), has facilitated greater access to medicinal cannabis through streamlined prescribing pathways. Additionally, advancements in cultivation, product innovation, and clinical research are strengthening the country’s position as a leading medical cannabis market in the Asia-Pacific region. While regulatory complexities and safety considerations remain challenges, ongoing policy refinements and growing physician awareness are expected to improve adoption rates. As the industry matures, Australia is well-positioned to capitalize on emerging opportunities in both domestic consumption and international exports, reinforcing its role in the global medical cannabis landscape.
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