Australia Medical Cannabis Market Report: Market Size & Forecast 2026

Australia's medical cannabis sector has evolved from a niche, access-scheme-only category into a regulated prescription pharmaceutical market following the 2016 legislative amendments that enabled legal patient access. The market is valued at roughly USD 0.5 billion in 2025, with double-digit annual growth expected to continue as approvals and prescribing volumes climb. Products in scope include CBD-dominant and THC-containing oils, capsules, dried flower, and topical formulations supplied through the Special Access Scheme and Authorised Prescriber pathways.

• •Estimated 2025 market value: approximately USD 0.5 billion
• •Forecast compound annual growth rate of 13.1% per year
• •Regulated by the Therapeutic Goods Administration (TGA) under SAS and Authorised Prescriber pathways

Patient registrations and approved prescriber counts have grown steeply since 2020, lifting repeat demand for both CBD and balanced THC/CBD therapies. Domestic production capacity has expanded rapidly under the Office of Drug Control licensing framework, shortening supply chains and lowering unit costs. At the same time, broader clinical evidence, simplified prescribing pathways, and growing acceptance among general practitioners are making it easier for new patients to access treatment.

• •Steep rise in active patients and approved prescribers since 2020
• •Expansion of domestic cultivation and manufacturing licences reducing import dependence
• •Growing clinical evidence and GP-led prescribing lowering access barriers

By application, chronic pain represents the largest therapeutic segment, followed by oncology-related symptoms, neurological conditions such as epilepsy and multiple sclerosis, and mental health indications including anxiety and PTSD. By derivative, the market spans CBD-dominant products, balanced THC/CBD formulations, and THC-dominant options, with oils and capsules leading dosage form share. Geographically, New South Wales and Victoria account for the largest patient cohorts, while Queensland and Western Australia are the fastest-growing regional markets.

• •Chronic pain is the leading therapeutic indication
• •Oils and capsules dominate dosage forms, with dried flower and topicals gaining share
• •NSW and Victoria lead patient numbers; Queensland and Western Australia are the fastest-growing states

What are the recent trends and outlook?

The medium-term outlook points to continued double-digit revenue growth, supported by TGA reforms that streamline prescribing and by the gradual normalisation of cannabis-based therapies in mainstream clinical practice. Innovation is shifting toward novel delivery formats such as fast-onset oral solutions, improved sustained-release capsules, and condition-specific formulations targeting sleep, women's health, and geriatric pain. Industry modelling published by Agriculture Victoria also indicates meaningful potential export volumes as Australian producers target Asia Pacific markets where regulations are opening.

• •TGA reforms and mainstream GP prescribing continue to widen patient access
• •Product innovation is focused on fast-onset oral formats and condition-specific formulations
• •Australian producers are positioning for export into emerging Asia Pacific medical cannabis markets