Australian Cannabis Trends 2021: Looking for Regulation Changes
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The Australian cannabis market underwent a busy 2021 period with significant challenges as the players in the industry continue to look for opportunities.
It’s all been about growth in the market, whether it comes from operations or regulations, as Australia continues to see its domestic market expand while players in the country pursue international ventures.
The sentiment surrounding cannabis investments around the globe has gone through ups and downs in 2021, an effect that’s been reflected in Australia, but on the whole experts continue to point to the prevalence of this market and its glowing future.
Australian cannabis trends 2021: New batch of numbers points to growth
According to a report on the second half of 2021 published by Australian data firm FreshLeaf Analytics, revenue for the domestic market in the year was AU$230 million.
Alongside the financial increase for this market there’s been a substantial uptick in patient count. Nearly 100,000 patients were expected to be registered in the Australian system by the end of the year, according to the report.
Each one of these patients spends, on average, AU$278 per month on medical cannabis.
The methodology of accounting from the research firm indicated the patients accounted for represent those “who have filled a prescription or consulted with a doctor about medicinal cannabis in the past six months.”
This patient growth indicates a key change in perspective for the medical application of cannabis. Experts continue to point to a slow moving process that will pay off in the long run.
"(Medical professionals) haven't gone through that usual path of learning about how cannabinoids work, what you prescribe them for, how you prescribe them, what you should be monitoring for in terms of adverse events and side effects," Dr. Yvonne Bonomo told ABC News. Dr. Bonomo is a physician and researcher at the Australian Centre for Cannabinoid Clinical and Research Excellence.Australian cannabis trends 2021: Regulations still complicated despite progress
A report from Forbes indicated public support for cannabis in Australia has gone up as a better understanding of the drug continues to increase.
Specifically, 41.1 percent of Australians are now in support of legalizing the recreational use of cannabis, according to results from the National Drug Strategy Household Survey. These most recent results were released in 2019.
While regulation hasn’t allowed for adult-use and still places heavy restrictions on medical, there’s been a gradual increase in the number of points of entry for access to medical cannabis by way of clinicians registering as authorised prescribers.
In 2021 there was a significant amount of growth for authorised prescribers. According to FreshLeaf Analytics at the end of September 2021, there were 430 doctors allowed to prescribed the drug, a 40 percent increase from only three months before.
“There is clearly a growing subset of clinicians who are committed to utilising medical cannabis as a regular treatment option for their patients,” the report from the Australian analytics firm said.
In an interview with ABC News, Josie Hamlett, compliance and logistics officer with domestic producer Tasmanian Botanics, said despite all the progress seen in the market, it's challenging to manage a cannabis operation in the country due to the current landscape of regulation.
"We definitely have a lot of hoops to jump through, working in the industry that we do … particularly in some cases when federal and state legislation doesn't align," Hamlett said.
Australian cannabis trends 2021: Investor takeaway
Australia’s cannabis market continues to show signs of improvement and it also has the numbers to back it up.
The domestic landscape has a long way to go as more understanding sets into the space and patient progress continues.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
For the Australian cannabis market, 2021 was all about incremental growth as the industry continued to find its place in the global market.