Cannabis sales plummet as regulators crack down on booming industry

Medicinal cannabis sales in Australia have fallen sharply for the first time in a decade as regulators crack down on one-stop online clinics and GPs issuing dozens of scripts a day.

Doctors prescribing large amounts of medicinal cannabis were put on notice last July when the Australian Health Practitioner Regulation Agency (AHPRA) released new guidelines in response to what it described as poor prescribing practice amid rampant patient demand.

Data obtained through freedom of information laws reveals cannabis sales fell by almost 30 per cent in the six months following the changes.

The figures, published in a Penington Institute report released on Thursday, show there were 2.65 million cannabis products sold in Australia in the second half of 2025 – more than one million fewer than were sold in the first six months of that year.

“This is the first real correction we’ve seen in Australia’s medicinal cannabis market since it began,” said John Ryan, the institute’s chief executive.

“It suggests regulators are starting to get on top of the worst practices, particularly high-volume prescribing driven by profit, not patient care.”

Australia’s medicines watchdog, the Therapeutic Goods Administration (TGA), is considering major reforms to how it regulates the booming industry that has emerged since cannabis was legalised for medicinal use a decade ago.

Ryan said the data shows regulatory enforcement is working, and the TGA should be cautious about introducing new restrictions which could funnel patients towards illicit cannabis markets, as has happened with the emergent illegal tobacco trade.

“Targeted enforcement … is the most effective way to deal with bad actors without punishing patients who genuinely benefit from these medicines,” he said. “Patients need safe access, not barriers that drive them elsewhere.”

The TGA has approved only two cannabis products; one to treat symptoms of multiple sclerosis, and the other to treat rare forms of epilepsy.

All other medicinal cannabis products are prescribed through special access pathways enabling doctors to write scripts for “unapproved” medicines, meaning they have not been assessed by the TGA for efficacy, quality or safety.

The TGA published an overview of the review’s findings in February, which found agreement across nearly 800 submissions that the current rules were no longer fit for purpose.

A spokesperson said the TGA would publish its findings report in the coming months before preparing reform options for the government’s consideration.

AHPRA chief executive Justin Untersteiner said the watchdog’s guidance probably motivated some prescribers to take a closer look at their practice.

“If this trend reflects an ongoing reduction in unsafe prescribing and businesses which aren’t putting patient safety first, then I would say that’s a positive outcome,” he said.

More than 60 practitioners prescribing and dispensing medicinal cannabis have so far fallen foul of the regulator, including 39 who have had restrictions placed on their registration.

A spokesperson for the Cannabis Council of Australia, which represents medicinal cannabis producers, prescribers and pharmacists, said the decline was a sign of the industry maturing after rapid growth.

“Moderation of overall volumes is representative of the sector’s focus on clinical governance, patient suitability, and continuity of care,” they said.

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