Penington Institute’s Cannabis in Australia 2025 report reveals an urgent need for governments to take back control of Australia’s fragmented and inconsistent cannabis markets, by embracing reforms that follow the evidence, minimise harm and maximise public benefit.
The flagship annual report shows that while medicinal cannabis continues to play an important clinical and therapeutic role for many Australians, the current system is under increasing strain and scrutiny, with reforms needed to ensure the long-term success of the framework.
The report reveals demand for medical cannabis appears to be plateauing, with product sales stabilising in early 2025, after years of rapid and sustained growth.
At the same time, prescription formats are shifting, with legal sales of edible cannabis medicines almost doubling over the past year.
This trend “may have positive health implications” as it could indicate a shift away from dried flower products which can be smoked by patients, the report says.
However, the report notes Australia still relies overwhelmingly on imported cannabis medicines. Two-thirds of the medicinal cannabis supplied in 2024 came from overseas, leaving domestic growers sidelined and exposing patients to supply chain risks.
Penington Institute says reforms must focus on protecting patients and building a strong, evidence-based regulatory system—not pushing people back into the illicit market.
Medicinal cannabis has issues that require attention, but heavy-handed crackdowns risk causing more harm than good. Driving patients away from regulated access will disrupt their care and expose them to untested products and an unsafe illicit market.
The report also highlights the mounting harms and costs of cannabis prohibition.
Australia spends billions enforcing laws that are failing to curb cannabis use while instead funneling vulnerable people into the criminal justice system. Meanwhile, the illicit market remains profitable and dangerous.
The Cannabis in Australia 2025 report notes increasing political pressure and momentum for change.
In 2025, a parliamentary inquiry in Victoria recommended decriminalising cannabis possession and an NSW inquiry called on the government to consider the legalisation and regulation of cannabis for adults.
Polling conducted by independent research firms in 2025 also confirm net support for cannabis legalisation, at both national and state levels.
Community sentiment is clear, the evidence is clear and the failures of prohibition are overwhelmingly clear.
Using cannabis can be harmful, but prohibition only exacerbates these health risks while piling on additional harms to the community.
Australia needs a coherent, modern cannabis framework that protects medicinal cannabis patients, keeps people away from the illicit market and unregulated products, and strengthens public health outcomes.
Penington Institute is calling on governments to implement comprehensive and coordinated reforms to allow Australia to reap the full health, social and economic benefits of a well-regulated cannabis system.
Media Contact
For all media enquiries, contact:
- Ryan Sheales, 0402 351 412 and ryan@theagendagroup.com.a