Cannabis in Australia: cultivating at scale and lessons from overseas markets

The Australian medicinal cannabis industry is one of the most rapidly evolving and growing sectors of horticulture in the country. During the course of this project, it has grown from infancy to become a significant market within the global cannabis landscape with an estimated retail value of approximately $500 million in 2024. With this rapid growth set to continue over the next decade, challenges and opportunities exist for producers, manufacturers, distributors, and legislators to grow the Australian cannabis industry in a sustainable and responsible direction with world-leading practices and sensible legislation.

Based on research across 16 countries, this report provides recommendations to drive a sustainable and profitable cannabis industry in Australia. The author visited dozens of farms to view production practices, discuss legislative frameworks, and investigate the application of emerging technology in the cultivation and processing of cannabis and cannabis products.

Cannabis is a unique horticultural crop, with a high level of variation in cultivation techniques, technology applied, and different forms of end-product for different uses. The potential for further deregulation within Australia represents a significant opportunity for market expansion. Producers in Australia have some competitive advantages in terms of cultivation, including access to high-skilled agricultural talent, favourable environmental conditions, and a well-developed pharmaceutical industry.

Key insights from international markets emphasise the importance of a regulatory framework that is robust, well thought-out, and prioritises public health whilst not overburdening producers with legislative or financial barriers.

Looking ahead, the Australian cannabis industry will continue to expand with most conservative estimates predicting a tripling of the 2022 industry by 2030, and the most optimistic predicting up to a 100-fold increase in a legalisation scenario. This report highlights the need for strategically planned cultivation facilities, with a heavy focus on efficient and appropriately sized cultivation facilities, collaboration on regulatory development including a cultivation framework, and learning from international models to develop a robust and efficient industry in which producers can leverage the competitive advantages local producers may have. Implementing best management practices across the Australian cannabis industry in the future will achieve consistent, reproducible, safe, and high-quality cannabis products.

Lastly, it should be noted that all figures and statistics quoted and presented in this report are, to the best of the author's knowledge, true and accurate at the time of writing. Due to the dynamic nature of the cannabis industry both within Australia and worldwide, it is inevitable that some of these figures will be out of date by the time of publication.