Market Report on Australia Legal Cannabis: Understanding Size, Share, Growth Trajectories
Australia’s legal cannabis market is entering a high-growth phase, supported by rising patient adoption, an expanding product ecosystem, and a steadily evolving regulatory environment. According to Grand View Research, the market was estimated at USD 862.31 million in 2025 and is projected to reach USD 3.05 billion by 2033, growing at a CAGR of 16.19% from 2026 to 2033. Growth is being driven by increasing awareness of cannabis-based therapies, legalization for medical use, supportive government initiatives, and the participation of both domestic and international players in the market.
The market’s momentum is closely tied to stronger prescription activity and broader patient acceptance. Grand View Research cites Penington Institute data showing that approximately 250,000 medicinal cannabis prescriptions had been approved up to June 2022, reflecting the rising role of cannabis in therapeutic care across Australia. The report also highlights that approvals for chronic pain alone reached 70,000 in 2021, underscoring the strength of clinical demand in key treatment areas. As companies scale product availability and healthcare access pathways improve, the Australian legal cannabis landscape is becoming more structured, competitive, and commercially attractive.
By source, hemp accounted for the largest revenue share of 54.49% in 2025, making it the leading segment in Australia’s legal cannabis market. Grand View Research attributes this leadership to increasing use of hemp-based products such as hemp CBD and supplements, along with demand linked to health conditions including epilepsy and sleep disorders. The source outlook in the report includes hemp CBD, supplements, and industrial hemp, alongside marijuana formats such as flower, oil, and tinctures, indicating a broadening commercial mix across product categories.
The marijuana segment is also expected to remain an important growth engine as therapeutic acceptance deepens and product launches continue across the medical channel. Grand View Research notes that Australia has legalized marijuana for medical use and indicates that the broader industry is benefiting from increased adoption of marijuana-based products for healthcare applications. New product introductions, including GMP cannabis products such as inhalation cartridges and medical cannabis oils launched by MediPharm Labs in September 2023, reflect the segment’s ongoing innovation and commercialization potential.
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Derivative Segment Analysis
By derivative, CBD held the largest market share at 53.40% in 2025, making it the dominant cannabinoid category in the Australia legal cannabis market. Grand View Research links this position to the legalization of low-dose CBD products by the Therapeutic Goods Administration, which has helped expand awareness and adoption. The report segments the market into CBD, THC, and other derivatives, signaling continued room for product diversification as patient preferences and prescribing patterns evolve.
CBD’s market leadership also reflects its broad relevance across medical, wellness, and consumer-facing formats. In Grand View Research’s Australia medical cannabis analysis, CBD remained the largest derivatives segment in 2025, supported by its non-psychoactive profile and growing use in pain management, recovery, and wellness applications. This derivative category is likely to remain central to market expansion as operators increase investment in oils, topicals, and other differentiated formulations designed for regulated medical access.
By end use, the medical segment dominated the Australia legal cannabis market and accounted for 69.02% of revenue in 2025. Grand View Research attributes this to increasing clinical adoption, expanding prescriber participation, improved access pathways, and rising patient use across a broad set of health conditions. The report’s end-use framework includes medical, recreational, and industrial categories, but medical use currently represents the core of market value creation in Australia.
Within medical use, demand is being shaped by a wide range of therapeutic applications including cancer, chronic pain, depression and anxiety, arthritis, diabetes, glaucoma, migraines, epilepsy, multiple sclerosis, AIDS, Alzheimer’s disease, Parkinson’s disease, PTSD, and other conditions. Grand View Research’s medical cannabis report further notes that chronic pain was the largest application segment in 2025, highlighting the importance of symptom-management demand in supporting long-term industry growth. This diversified application base strengthens the market’s resilience and gives suppliers multiple pathways for portfolio expansion.
Australia’s legal cannabis market features a growing mix of listed companies, domestic operators, and international participants, creating an increasingly active competitive landscape. Grand View Research notes that the number of companies operating in the medical marijuana market is increasing, with many listed on the Australian Stock Exchange, while smaller local players continue applying for cultivation licenses and attracting funding or acquisition interest from larger companies. The market is characterized by fragmentation, a high degree of innovation, and strategic activity spanning product launches, partnerships, acquisitions, and geographic expansion.
Recent developments underline the pace of competition. Grand View Research highlights Vitura Health Limited’s acquisition of Doctors On Demand in October 2023 to expand into new service and product verticals. The research also notes Aurora Cannabis received GMP certification from Australia’s TGA for Canadian production facilities in March 2024, while Cronos Group expanded distribution into Australia through Vitura Health, reflecting continued cross-border interest in the market.
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Cann Group is one of the prominent names identified by Grand View Research in Australia’s legal cannabis ecosystem and is part of the competitive group shaping supply, manufacturing, and market development in the country.
Zelira Therapeutics is listed among the key players in the market, with Grand View Research also noting a January 2026 funding event tied to its HOPE 1 therapeutic program, indicating continued progress in product development and regulatory advancement.
AusCann Group Holdings Ltd is included among the established market participants profiled by Grand View Research and remains part of the core competitive set in Australia’s medicinal cannabis industry.
Bod Science is identified as a notable participant in the Australian cannabis market, reflecting the presence of diversified companies focused on cannabinoid-based health and wellness offerings.
Althea Group appears among the companies tracked by Grand View Research and represents the group of operators building regulated cannabis portfolios for the Australian market.
Ecofibre is recognized as a key company in the market and aligns with the report’s emphasis on hemp-derived products and broader cannabinoid commercialization opportunities.
Botanix SB Inc. is listed among important players in the competitive landscape, illustrating the participation of companies with differentiated cannabinoid-related product capabilities.
EPSILON is included in Grand View Research’s list of key companies, indicating its relevance within Australia’s evolving legal cannabis value chain.
Little Green Pharma is a major name in the market; Grand View Research notes that in January 2026 the company 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.
Incannex Healthcare is identified among the leading companies in Australia’s medical cannabis sector, reflecting its position within a market increasingly driven by innovation and therapeutic targeting.
Vitura Health Limited stands out as an active consolidator in the market, with Grand View Research citing its October 2023 acquisition of Doctors On Demand as a move to broaden its healthcare and cannabis-related capabilities.
Bioxyne is also listed among the key companies participating in Australia’s legal cannabis market, contributing to the breadth of domestic industry participation.
Additional companies named by Grand View Research include Green Farmers, ECS Botanics, Tasmanian Botanics, Cannatrek, Hale farms, Australian Natural Therapeutics Group, MedTEC Pharma, Aruma Labs, and Montu Group, collectively highlighting the market’s broad and still-expanding competitive base.
Australia’s legal cannabis market is moving from early-stage development toward a more mature, medically anchored growth story. With market revenue projected to rise to USD 3.05 billion by 2033, led by hemp, CBD, and medical applications, the sector is attracting stronger attention from healthcare providers, investors, manufacturers, and strategic partners. As regulation continues to evolve and companies invest in product quality, access channels, and portfolio expansion, the market is positioned to become one of the more closely watched cannabis opportunities in the Asia-Pacific region.
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