Australia’s cannabis story has been one of the most remarkable in the world. In 2016, it had virtually no legal cannabis market. By 2025, it has an estimated 700,000 to 900,000 medical cannabis patients, making it one of the three largest medical cannabis markets on the planet alongside the US and Germany. The speed of this transformation, driven by a permissive approvals system and the explosion of telemedicine clinics, has made Australia a case study that other countries watch closely.
Australia Cannabis Market: 2025 Numbers
Medical cannabis sales in Australia are projected to reach approximately $656 million USD in 2025. While modest compared to the US market in absolute terms, on a per-capita and market-maturity basis, Australia punches significantly above its weight. The estimated patient base of 700,000 to 900,000 makes Australia one of the three largest medical cannabis markets in the world by patient numbers. Market growth slowed to approximately 8% in 2025 after several years of rapid expansion.
How Australia’s Medical Cannabis System Works
Australia regulates medical cannabis under a two-pathway access system administered by the Therapeutic Goods Administration (TGA). The Authorised Prescriber pathway allows TGA-approved doctors to prescribe specific medical cannabis products directly to patients without individual approval for each prescription. The Special Access Scheme (SAS-B) allows other doctors to apply to the TGA for approval to supply specific patients.
The growth of digital health platforms and telemedicine clinics made it practical for patients across Australia, including rural and regional areas, to access medical cannabis consultations online. This dramatically expanded the patient base beyond major cities.
What Australian Patients Are Using
Cannabis oil products taken orally or sublingually are the dominant format in the Australian medical market, reflecting the prescribing preferences of doctors and the patient demographic. Dried flower for vaporisation is also available and growing. Capsules and soft gels represent a moderate share with convenient, discreet, pharmaceutical format. Topicals are a small segment primarily for localised pain conditions.
Leading Conditions Treated
Chronic pain is the single largest indication, accounting for the majority of prescriptions. Anxiety is a rapidly growing indication, particularly among younger adult patients. Sleep disorders including insomnia rank second or third most common. PTSD is particularly prevalent among veterans and emergency service workers. Cancer-related symptoms including pain, nausea, and appetite loss, epilepsy and seizure disorders, and multiple sclerosis spasticity also represent significant indications.
The Regulatory Question
Health authorities have raised concerns about whether telemedicine-driven prescribing models are appropriately rigorous. Proposed restrictions on patient access pathways could, if implemented, significantly reduce the patient growth rate. The industry is actively engaged in these regulatory discussions.
Australia’s federal government has not pursued recreational legalisation. The ACT (Australian Capital Territory) passed a personal use bill in 2019 allowing small amounts of personal possession and home growing, but commercial recreational retail does not exist at the state or federal level.
Australia as an Export Market
Australia is a key export destination for Canadian licensed producers and Portuguese producers. Australian regulatory standards (TGA approval) create a quality signal that supports premium pricing. Australian domestic producers are growing in capacity and some are beginning to export to other markets.
The Five-Year Outlook
Despite the 2025 growth slowdown, Australia’s medical cannabis market has structural tailwinds including rising awareness among general practitioners, widespread chronic pain and anxiety conditions with large untreated populations, growing acceptance of telemedicine, and potential regulatory modernisation. If Australia’s patient base grows toward even 1% of the total population, the addressable market expands considerably.
Frequently Asked Questions
Is cannabis legal in Australia?
Medical cannabis has been legal in Australia since 2016, regulated by the Therapeutic Goods Administration (TGA). By 2025, Australia has an estimated 700,000 to 900,000 medical cannabis patients, making it one of the world’s largest medical cannabis markets. Recreational cannabis remains illegal at the federal level, though the ACT allows small amounts of personal possession and home cultivation.
How big is Australia’s medical cannabis market?
Australia’s medical cannabis market is projected to reach approximately $656 million USD in 2025. The patient base is estimated at 700,000 to 900,000, making Australia one of the three largest medical cannabis markets in the world by patient numbers. The market grew by approximately 8% in 2025, a slowdown from earlier years of more rapid expansion.
How do Australians get access to medical cannabis?
Australian patients access medical cannabis through two main TGA-administered pathways: the Authorised Prescriber pathway for TGA-approved doctors, and the Special Access Scheme (SAS-B) for other doctors applying to supply specific patients. The growth of telemedicine platforms has made both pathways accessible digitally, dramatically expanding the patient base beyond major cities.
What conditions is medical cannabis prescribed for in Australia?
Chronic pain is the leading indication, followed by anxiety, sleep disorders, PTSD, cancer-related symptoms, epilepsy, and multiple sclerosis spasticity. Chronic pain and anxiety together account for the majority of new prescriptions. The patient demographic has diversified significantly from the early years when epilepsy dominated.
Which cannabis companies supply the Australian market?
Australian medical cannabis is supplied by a combination of domestic licensed producers and international importers. Canadian producers including Tilray and Aurora have significant supply relationships with the Australian market. Portugal is also listed among Australia’s key supply sources. Australian domestic producers are growing in capacity and some are beginning to export as well.
