Australia Cannabis Market Forecast: Top Trends for 2023

More Australians using medical cannabis, but access still tough

In a recent survey on cannabis as medicine, researchers found that medical cannabis use in Australia is on the rise.

Compared to the 2.7 percent of respondents using legally prescribed medical cannabis last time the survey was conducted back in 2018, the results this time around found “37 percent of respondents had received a legal prescription for medicinal cannabis.”

The survey was conducted between September 2020 and January 2021 and polled 1,600 people with a mean age 46.4, but the results were not shared until halfway through 2022.

“The data suggests we have seen a transition from illicit to legal use of medical cannabis,” said lead researcher Professor Nicholas Lintzeris from the Faculty of Medicine and Health at the University of Sydney. According to Lintzeris, those who bought their cannabis legally were more likely to consume oral products or vapourised items compared to smokables.

But while the study shows growth in the cannabis market, it also indicates how much further it still has to go.

For example, although the number of patients using cannabis products has increased, study respondents expressed frustration with the current access model — only 24 percent of prescribed patients found the path “easy or straightforward.” Some people are struggling to find practitioners willing to write a prescription, and are turning to unregulated cannabis instead.

Beyond accessibility, 47 percent of survey respondents said cannabis is too expensive — although one company is arguing the opposite. Levin Health, an Australian sports science company specialising in medical cannabis, indicated that there’s been a downward trend in cannabis prices as imported products are becoming less necessary.

The firm said Australian patients have been asked to carry the costs of imported goods, but they won't be for much longer.

“With domestic cultivation on the rise, imports are expected to be pushed to the side, making way for a 50/50 split between imported and locally grown or manufactured products,” the company said in a statement.

Levin Health noted that with the average cannabinoid price per milligram dropping 12 percent between the months of March and September 2021, lower costs of cannabis products should be the expectation moving forward.

Investor takeaway

It's still early days in Australia's cannabis industry, but as the world continues to change its views on the drug, it's clear that perspectives in the country are adjusting.

Will these changes in mentality be reflected by policies in 2023? Investors will have to wait and see.