More Than $3 Billion At Stake: How Regulatory Red Tape Is Holding Back Australia’s Cannabis Legalization
In an exclusive interview with Benzinga Cannabis, athlete-turned-cannabis entrepreneur Jeff Lang, CEO of Byron Bay Bio, and Will Stolk, activist and director of People Like Us Creative, discussed their journey from sports to the Australian cannabis markets. Together, they work on cannabis investments, brand strategy and expanding operations in both the Australian and U.S. cannabis markets.
Their insights highlight key topics for investors, including Australia’s restricted medical cannabis market, the dominance of imports and barriers to local cultivation. They also explore growth opportunities, such as consumer demand trends, and the influence of pharmaceutical companies on cannabis legalization.
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Australia’s Medical Cannabis Market: Limited Access And High Demand
While Australia has legalized medical cannabis, the market remains highly restricted. Only around 130,000 new medical cannabis prescriptions are written annually, according to Lang, although there are approximately 4 million regular cannabis users in the country.
Patients in Australia must go through the Therapeutic Goods Association (TGA) to access cannabis, with the majority of products being imported from Canada and Israel.
The legal medical cannabis market in Australia was valued at AUD 136 million ($91.6 million) in 2023, while the illicit market dwarfs this figure, estimated at AUD 5 billion annually.
The discrepancy highlights the limited availability and high costs of legal cannabis, making it difficult for patients to switch from illegal suppliers.
Barriers To Entry: High Costs And Stringent Regulations
Lang emphasized that the biggest challenge for local cultivators in Australia is the stringent regulatory …