Australia Medical Cannabis Market (2026 - 2033) Size, Share & Trends Analysis Report By Application, By Sources (Hemp, Marijuana), By Derivatives (CBD, THC, Others), By Application (Cancer, Chronic Pain, Anxiety And Depression, Arthritis, Diabetes), And Segment Forecasts

Australia Medical Cannabis Market Summary

The Australia medical cannabis market size was estimated at USD 595.12 million in 2025 and is projected to reach USD 1,637.44 million by 2033, growing at a CAGR of 12.85% from 2026 to 2033. This growth is driven by a rising interest in alternative therapies for managing chronic pain, nausea, and various other health issues, the introduction of new products and formulations.

This growth in demand for non traditional therapeutic options reflects a shift in consumer preferences and a growing acknowledgment of the potential health benefits of these alternatives. The market is witnessing a significant increase in new and diverse product offerings, ranging from edibles and topicals.

In addition, number of people adopting cannabis for medical purposes has recently increased in Australia. According to findings from the 2022-23 National Drug Strategy Household Survey, conducted by the Australian Institute of Health and Welfare (AIHW), the use of cannabis for medical reasons has become increasingly common across Australia. The survey indicates that roughly three in every 100 Australians aged 14 years and older reported using cannabis for therapeutic purposes within the previous year, translating to an estimated population of about 700,000 individuals. This data reflects a trend in medical cannabis adoption, highlighting its growing role in symptom management and therapeutic care within the Australian healthcare landscape.

Moreover, the growth in patient numbers is matched by a rise in formal prescriptions, managed through access frameworks set by the Therapeutic Goods Administration (TGA). For instance, data from the TGA published in April 2024, show that since legal access pathways were established in 2016, approvals for medicinal cannabis products have grown substantially. In the end of 2023, there were over 963,000 approvals under the Authorized Prescriber (AP) pathway and around 458,000 approvals under the Special Access Scheme Category B (SAS-B) with chronic pain and anxiety among the top indications for use.

Furthermore, Australia continues to expand its medicinal cannabis industry, the cultivation of domestically grown cannabis has become a key focus. The infographic below illustrates the significant increase in the amount of medicinal cannabis dried flower produced locally, comparing data from 2021 to 2023. This growth emphasizes the rising demand for medicinal cannabis and highlights Australia's efforts to strengthen its domestic supply chain, ensuring both the availability and quality of products for medical use.

Moreover, consumer behavior and market education regarding cannabis in Australia have changed significantly in recent years, reflecting a shift from illicit use toward prescribed medical access. Legal access to medicinal cannabis was introduced in 2016, and since then, regulatory reforms, including changes to the Therapeutic Goods Administration (TGA) Special Access Scheme (SAS) and Authorized Prescriber pathways, have made it easier for patients to obtain prescribed products from medical practitioners rather than rely on unregulated sources. According to the NCBI article published in May 2024, research, such as the Cannabis as Medicine Survey (CAMS‑22), shows this transition: in previous biennial surveys conducted after legalization, very few medical users reported prescribed their products, whereas out of a total of 3,323 individuals surveyed in the analysis, approximately 2,352 participants representing 73% of the group reported that their primary use of cannabis was through prescribed medical channels., indicating a significant shift toward regulated consumption.

Furthermore, with the growing demand, the entry of international players in the Australia cannabis market has increased. Favorable government initiatives and the rising preference for cannabis based products are key factors creating lucrative opportunities for key international players to enter the market. For instance, in March 2024, Aurora Cannabis Inc. was awarded GMP certification by the TGA of Australia for its Canadian production facilities, River and Ridge. This certification allows Aurora to expand its product offerings in Australia, including dried flower, resin cartridges, pastilles, and oils, providing patients with a wider range of treatment options.

Table 1 CBD-based consumer goods available in Australia

Market Concentration & Characteristics

The Australian medical cannabis market is characterized as fragmented, with many small to medium-sized players competing in the market. This is due to the relatively low barriers to entry, combined with the government's decision to license multiple cultivators and manufacturers. As a result, the market is made up of numerous small scale producers, processing companies, and distributors. This fragmentation is driven by factors such as limited economies of scale, high regulatory costs, and the need for specialized expertise in cannabis cultivation and production.

Degree of innovation in the Australian medical cannabis market is high, driven by the growing number of competitors entering the market. These competitors introduce diverse, sophisticated cannabis products to secure a competitive advantage. For instance, in March 2024, a global medical cannabis company, and its Australian subsidiary, MedReleaf Australia, announced the launch of medical cannabis pastilles in Australia. This new product is available for doctors to prescribe to patients, providing a convenient and discreet alternative to traditional methods of cannabis consumption. The industry is seeing the development of new products and delivery methods, such as precision-dosed oils and topical creams, which are tailored to specific patient needs.

The regulation of the Australian medical cannabis market has a significant impact on the industry. The Therapeutic Goods Administration (TGA) has introduced a framework for the cultivation, production, and distribution of medical cannabis, providing a clear path for companies to enter the market. The regulations have also increased transparency and accountability, allowing for greater patient confidence and trust in the products. Additionally, the regulation has encouraged investment and innovation in the industry, driving growth and development in the market.

The Australian medical cannabis market has experienced a significant level of mergers and acquisitions in recent years, driven by the growing demand for cannabis-based products. For instance, In February 2024, Aurora Cannabis Inc. announced that one of its wholly owned subsidiaries has acquired the remaining 90% equity stake in Indica Industries Pty Ltd, trading as MedReleaf Australia. This trend is expected to continue, with many companies seeking to expand their operations through strategic partnerships and acquisitions.

The Australian medical cannabis market has seen a significant expansion of product offerings in recent years, driven by the growing demand for high-quality cannabis-based products. For instance, in February 2024, SOMAÍ Pharmaceuticals a company based in Portugal, has announced its entry into the Australian market. They intend to produce and distribute various vape and oil products through a partnership with Airo Brands, the initial products are anticipated to be accessible via the Special Access Scheme starting in the year's second quarter. This expansion has been driven by the introduction of new products, including oil extracts, edibles, and topicals, as well as the development of new delivery methods, such as inhalers and transdermal patches.

The Australian medical cannabis market is witnessing a geographical expansion, with major pharmaceutical companies and cannabis operators expanding their presence across the country. For instance, in January 2024, Cronos Group Inc. expanded its distribution network to the Australian market by providing its first delivery of cannabis flowers to Vitura Health Limited, a medicinal cannabis products manufacturer. The company owns approximately 10% of the common shares of Vitura (Cronos Australia).

Sources Insights

The hemp segment dominated the market with a share of 54.49% in 2025. The growth of the segment is driven owing to the use of hemp derived CBD products in several sectors, including cosmetics, pharmaceuticals, nutraceuticals, and food & beverages. The demand for CBD-infused cosmetics and personal care products is rapidly growing owing to CBD’s anti-inflammatory, antiseborrheic, and antioxidant properties. Numerous beauty brands, such as The Body Shop and MGC Derma, are now involved in producing personal care & cosmetic products infused with hemp-derived CBD. For instance, in March 2024, Hemp Foods Australia announced the launch of its first beauty supplement that focuses on enhancing the health of hair, skin, and nails. This new product, a vegan collagen supplement, marks the company's entry into the beauty from within category and aims to address the demand for plant based alternatives.

The marijuana segment is expected to grow at the fastest CAGR during the forecast period. This growth can be attributed to the recognized therapeutic benefits of marijuana in alleviating the symptoms of various illnesses, including cancer, AIDS, multiple sclerosis, glaucoma, seizure disorders, spinal cord injuries, chronic pain, and other medical conditions. According to data from the Australian Institute of Health and Welfare, by 2033, it's projected that Australia will see more than 200,000 cancer diagnoses, a number that's expected to rise due to population growth and the anticipated increase in cancer rates. As the prevalence of such medical conditions continues to rise, there is a corresponding expectation of increased utilization of marijuana for medical purposes, thereby driving growth in this segment.

Application Insights

Based on application, the chronic pain segment held the largest share of 53.78% in 2025, driven by the increasing demand for alternative treatments and rising use of CBD for chronic pain relief has grown alongside broader medicinal cannabis adoption, though access remains regulated. According to the Australian Government article in November 2024, most CBD and cannabis products are not registered medicines on the Australian Register of Therapeutic Goods (ARTG) and therefore require a prescription from a medical practitioner through the Therapeutic Goods Administration’s (TGA) Special Access Scheme (SAS) or Authorized Prescriber Scheme. These pathways allow doctors to prescribe medicinal cannabis products, including CBD-dominant, balanced CBD/THC, and other cannabinoid formulations, for conditions such as chronic non-cancer pain, neuropathic pain, arthritis related discomfort, and other pain syndromes when clinically appropriate.

The AIDS segment is expected to experience the fastest CAGR over the forecast period. Cannabis can be beneficial in reducing some of the symptoms of AIDS, such as a reduction in HIV-associated neuropathy. Thus, the increasing prevalence of AIDS is expected to accelerate market growth. For instance, as per the Health Equity Matters in 2023, it was estimated that Australia had a population of 30,010 individuals living with HIV in 2023. By the end of that year, 92% of these individuals had been diagnosed. Furthermore, the studies indicated that about 97% of those diagnosed were undergoing treatment for HIV. Thus, the increasing prevalence of AIDS and the growing adoption of cannabis for treating HIV/AIDS patients are supplementing the market growth.

Derivatives Insights

The CBD segment had the largest market share of 54.30% in the derivatives segment in 2025. driven by its non-psychoactive properties and growing adoption across wellness, pain management, and recovery applications. Cannabidiol (CBD) is increasingly preferred due to its perceived therapeutic benefits without intoxicating effects, proving its widespread use in consumer health and sports related products. Moreover, key players are strengthening their presence through new product launches, partnerships, and brand-driven initiatives to capture rising demand. For instance, in March 2024, former Wimbledon champion Pat Cash entered the CBD market, launching a range of CBD products and publicly recommending CBD oil for managing chronic pain and supporting athletic recovery. This development reflects the growing acceptance of CBD among professional athletes and wellness consumers, reinforcing sustained demand for CBD based derivatives.

The others segment is expected to grow at the fastest CAGR during the forecast period. The Other cannabis derivatives, including terpenes, flavonoids, and minor cannabinoids such as CBG, CBC, and CBN, are gaining attention due to their potential therapeutic benefits and expanding use across medical and wellness applications. These compounds interact with the body’s endocannabinoid system, helping regulate inflammation, pain, and neurological responses, which fuels their growing adoption in clinical practice. Physicians are increasingly prescribing cannabinoid based formulations for conditions where targeted symptom management with fewer adverse effects is desired. For instance, in November 2025, several international manufacturers expanded their full spectrum medicinal cannabis oil portfolios, incorporating minor cannabinoids and terpene-rich profiles alongside CBD and THC to enhance synergistic therapeutic effects for pain, anxiety, and well-being highlighting the industry’s shift from single compound isolates toward complex, multi cannabinoid formulations.

Key Australia Medical Cannabis Company Insights

The competitive scenario in the Australia medical cannabis market is highly competitive, with key players such as Cann Group, Zelira Therapeutics, AusCann Group Holdings Ltd., Bod Science, Althea Group, Ecofibre, Botanix SB Inc., EPSILON, Little Green Pharma, Incannex Healthcare, Vitura Health Limited, and Bioxyne holding significant positions. The major companies are undertaking various strategies such as new product development, collaborations, acquisitions, mergers, and regional expansion for serving the unmet needs of their customers.

Recent Developments

• In January 2026, Little Green Pharma announced a merger with Cannatrek, creating a combined medicinal cannabis group with USD 75.4 million in pro forma revenue and GMP-certified manufacturing in Australia and Denmark, aiming to scale operations and strengthen European market presence.

• In January 2026, Zelira Therapeutics raised USD 32.98 million through its HOPE 1 SPV, with ThirdGate Capital acquiring a 50% interest and Zelira retaining 39.7%. The capital provides funding to complete the FDA regulatory pathway for HOPE 1, a therapeutic program targeting Phelan-McDermid Syndrome and autism spectrum disorder.

• In June 2025, ECS Botanics launched Terphogz medicinal cannabis product in Australia, expanding its domestic portfolio and strengthening its presence in the local medicinal cannabis market.

• In February 2025, MedTEC Pharma in South Australia launched the freeze-dried cannabis products using Australian-grown plants, introducing a novel manufacturing approach that broadens product options and patient accessibility.

Australia Medical Cannabis Market Report Scope

Australia Medical Cannabis Market Report Segmentation

This report forecasts revenue growth at country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2021 to 2033. For the purpose of this study, Grand View Research has segmented the Australia medical cannabis market report on the basis of sources, derivatives, and application:

• Sources Outlook (Revenue, USD Million, 2021 - 2033)

  • Hemp

    • Hemp CBD Oil   

    • Suppliments

    • Industrial Hemp

  • Marijuana

    • Flower

    • Oil and Tinctures

• Derivative Outlook (Revenue, USD Million, 2021 - 2033)

  • CBD

  • THC

  • Others

• Application Outlook (Revenue, USD Million, 2021 - 2033)

  • Cancer

  • Chronic Pain

  • Anxiety and Depression

  • Arthritis

  • Diabetes

  • Glaucoma

  • Migraines

  • Epilepsy

  • Multiple Sclerosis

  • AIDS

  • Amyotrophic Lateral Sclerosis

  • Alzheimer’s Disease

  • Post Traumatic Stress Disorder (PTSD)

  • Parkinson's Disease

  • Tourette’s Syndrome

  • Others