Emerging Trends In Medicinal Cannabis
Medicinal cannabis in Australia is rapidly evolving — where what was once a niche market is now a significant part of modern healthcare. For businesses navigating this landscape, understanding these dual pressures is key to thriving in this fast-paced and dynamic environment.
The Evolving Regulatory Landscape
Within the regulatory landscape, recent actions by Therapeutic Goods Administration (TGA), Australian Health Practitioner Regulatory Agency (AHPRA) and Office of Drug Control (ODC) have signalled a zero-tolerance approach to business models that attempt to circumvent standard medical practice (TGA, 2025; AHPRA, 2025).
With the most recent regulatory trend of 2024 and 2025 being the crackdown on direct-to-consumer, vertically integrated telehealth clinics (AMA & PGA, 2025).
Both the TGA and AHPRA have clarified that prescribers must not engage in "hasty online consultations" or allow commercial interests to override clinical judgement. AHPRA guidance now explicitly states that the prescribing of Schedule 8 medicinal cannabis requires the same diligence as prescribing opioids — including thorough patient assessment, mental health history, and coordination with the patient's usual treating practitioners (AHPRA, 2025).
Further, the TGA has issued large infringement notices and directions to well known companies to cease unlawful advertising of medicinal cannabis to the public, where indirect marketing terms such as ‘plant medicine’ are unacceptable under the Therapeutic Goods Act (TGA, 2025).
Supply Chain Control
Despite soaring patient numbers, the medicinal cannabis industry in Australia faces a structural challenge regarding supply and control. With a clear reliance on imports, especially from Canada, to meet the increasing patient demand. In 2024, the import volume grew by a massive 74% and is expected to continue rising (Business of Cannabis, 2025).
Furthermore, regulatory action by the ODC involved adjusting import quotas due to wrong forecasting by companies (Cannamonitor, 2025). As such, this has forced licensed importers to prove they can effectively utilise the cannabis they’re bringing into Australia, and therefore, enhances the pressure for accurate forecasting and better supply chain efficiency.
Competition & Business Strategy
In response to the shifting regulatory, supply chain and competitive landscape, the commercial sector is segmenting and specialising, with clear leaders emerging in both cultivation and digital health.
When it comes to trends in products themselves, there is a clear shift towards high-THC dried cannabis flower formulations. Patients value the faster onset and control offered by vapourised flowers, particularly for conditions that require a faster response. Additionally, there is increased demand for dosage forms such as edibles (pastilles, gummies), and many companies are meeting this strong consumer pull for non-inhalation methods (Investing News Network, 2025; Mordor Intelligence, 2025).
Since medicinal cannabis was first legalised in Australia in 2017, the previous large field of start-ups is now becoming a consolidated structure dominated by ASX-listed entities and/or specialised players (Investing News Network, 2025; NSW Government, 2025). However, despite domestic production increasing by 148% in the last three years, Australian licensed producers held a significant stockpile of domestically grown cannabis in 2024 (Cannamonitor, 2025). This suggests a struggle to compete with established imported product lines, underscoring the need for greater local genetic research and development, and cost efficiency to drive domestic sales Grand View Research, 2025; Investing News Network, 2025).
Final Thoughts
As the medicinal cannabis industry in Australia continues to evolve, the market is rewarding quality over quantity, where businesses that will secure long-term value are those that:
Embrace Clinical Governance
Invest in Compliance Infrastructure
Drive Domestic Competitiveness
Learn More
EQWELLIBRIYUM offers end-to-end consulting for organisations navigating the medicinal cannabis market in Australia. With strategic insights and operational frameworks designed to help you thrive, we’re here to help you. Learn more by contacting us today at hello@eqwellibriyum.com.
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Disclaimer
This article is for educational purposes only and does not constitute legal advice. For guidance specific to your circumstances, you should seek professional legal advice and / or contact the Therapeutic Goods Administration (TGA) and AHPRA.
Reference List
AHPRA (Australian Health Practitioner Regulation Agency). (2025). Medicinal cannabis prescribing: Information for registered health practitioners.
AMA (Australian Medical Association) & PGA (Pharmacy Guild of Australia). (2025). United call for action on medicinal cannabis regulation [Referenced via RACGP & HealthTimes].
Business of Cannabis. (2025). Germany Expands Its Medical Cannabis Import Cap as Australia Moves to Cut Back.
Cannamonitor. (2025). Australia's Cannabis Market Transition: Booming Supply, Tightening Rules.
Grand View Research. (2025). Australia Legal Cannabis Market Size, Share &
Analysis Report.
Investing News Network. (2025). ASX Cannabis Stocks: 10 Biggest Companies in 2025.
Mordor Intelligence. (2025). Australia Medicinal Cannabis Testing Market Size & Share Analysis.
NSW Government. (2025). NSW Government delivers response to the 2024 Drug Summit Report [Referenced via DCJ].
RACGP (Royal Australian College of General Practitioners). (2025). United call for action on medicinal cannabis regulation.
TGA (Therapeutic Goods Administration). (2025). Guidance for the use of medicinal cannabis in Australia: Overview.
TGA (Therapeutic Goods Administration). (2025). Dispensed Pty Ltd issued infringement notices and directed to cease alleged unlawful advertising of medicinal cannabis.