Australia’s medical cannabis market is on a trajectory that could see it outpacing major European markets in just a few years. While investors traditionally eye Germany, the UK, and Poland as the prime regions for growth, fresh projections suggest Australia may take the lead. A new report indicates the country’s cannabis revenue could double within four years, setting the stage for a major industry shift.
Australia’s Market Growth is Outpacing Expectations
The latest figures from Prohibition Partners’ “The Global Cannabis Report” paint a striking picture. Australia’s medical cannabis revenue, currently sitting around $600 million (AU$955.1 million) in 2024, is expected to reach over $1.2 billion by 2028. That’s an impressive growth curve for a market often overshadowed by North America and Europe.
To put this into perspective, the entire European medical cannabis market is projected to hit $2.2 billion by 2028. Germany—Europe’s leader—is expected to generate roughly $1.2 billion, meaning Australia’s cannabis revenue could match its German counterpart within the same timeframe.
This sharp rise suggests Australia is no longer an afterthought in the global cannabis discussion. Investors and businesses looking to expand in medical cannabis may need to adjust their focus.
What’s Driving Australia’s Cannabis Boom?
Several factors are fueling this rapid growth:
- Regulatory Improvements: The Australian government has steadily refined regulations, making medical cannabis more accessible to patients.
- Rising Patient Numbers: More Australians are turning to cannabis-based treatments, with prescriptions climbing year over year.
- Local Production & Exports: Domestic cultivation has ramped up, reducing reliance on imports and opening doors for global exports.
- Shifting Public Perception: Growing acceptance among medical professionals and the general public is driving demand.
One crucial aspect of Australia’s rise is the patient access model. Unlike Europe, where medical cannabis distribution is tightly controlled and often limited, Australia has introduced a more streamlined prescription process, making it easier for patients to obtain cannabis treatments.
How Australia Compares to Europe
Let’s take a closer look at how Australia stacks up against the leading European medical cannabis markets.
| Country | Projected 2028 Revenue | 2024 Revenue (Approx.) | Market Trend |
|---|---|---|---|
| Australia | $1.2 billion | $600 million | Rapid Growth |
| Germany | $1.2 billion | $500 million | Expanding Slowly |
| UK | $500 million | $250 million | Moderate Growth |
| Poland | $200 million | $100 million | Emerging Market |
While Germany remains Europe’s heavyweight, Australia’s trajectory suggests it could become an equally dominant player. The UK and Poland are growing, but at a much slower pace.
What This Means for Investors and Businesses
For companies involved in cannabis production, distribution, and investment, Australia is becoming impossible to ignore. Here’s what industry players should consider:
- Investment Potential: With revenue expected to double in just four years, Australia presents lucrative opportunities for investors.
- Market Expansion: International cannabis businesses may find Australia a more attractive entry point than Europe due to its streamlined prescription process.
- Policy Influence: If Australia continues to refine regulations, it could set an example for other markets looking to expand medical cannabis access.
The Road Ahead for Australia’s Cannabis Industry
The biggest question now is whether Australia can maintain this momentum. While the numbers are promising, several challenges remain, including regulatory shifts, pricing pressures, and competition from other emerging markets.
One thing is certain—Australia’s medical cannabis industry is no longer playing catch-up. It’s leading the charge and could soon be the benchmark for other markets outside North America.