Australian Medical Cannabis Supply Shifts As Thailand Gains Ground
Australian medical cannabis cultivation team reviewing production
Canada remains the dominant foreign supplier of medical cannabis to Australia, but the competitive picture changed sharply in 2025. Australian government data shows Canada supplied 49,107 kilograms, representing about 61 percent of all cannabis imported into Australia. Thailand supplied another 20,658 kilograms, or roughly 25 percent, after representing only about 1 percent of imports the year before. At the same time, Australian domestic production reached 55,337 kilograms, exceeding imports from Canada for the first time since 2022.
Quick facts
• Australia imported 81,119 kilograms of cannabis for medical purposes in 2025
• Total imports increased about 5 percent from 2024
• Canada supplied 49,107 kilograms, representing about 61 percent of imports
• Canadian shipments declined about 21 percent from 62,111 kilograms in 2024
• Thailand supplied 20,658 kilograms, representing about 25 percent of imports
• Thailand supplied only 1,093 kilograms in 2024
• Australian domestic production reached 55,337 kilograms in 2025
• Domestic production increased from 42,420 kilograms in 2024
• Australia produced more cannabis domestically than it imported from Canada for the first time since 2022
• Australia exported 6,780 kilograms in 2025, more than double its 2024 export volume
• Germany received 3,668 kilograms, making it the largest destination for Australian exports
• Imported and domestically produced medical cannabis supplied in Australia must meet applicable Australian quality standards
• The universal operator lesson is simple: international supply leadership can change quickly when domestic production grows and new exporting countries become credible competitors
If Australia is part of your international cannabis strategy, complete our quick Puro Risk intake form so you can map supply contracts, product compliance, inventory, transportation, insurance, and market access exposure before committing to long term volume.
Why Canada still matters
Canada remains deeply important to Australia's medical cannabis supply chain.
Its 49,107 kilograms represented the majority of imported cannabis during 2025, supported by established Canadian producers with international production, compliance, and distribution capabilities.
But Canada's position is changing.
Shipments fell about 21 percent from 2024 even as Australia's total imports increased. That means Canadian suppliers are competing for share in a market that is still growing but becoming more diversified.
For Canadian operators, maintaining access may increasingly depend on pricing, consistency, product quality, reliable supply, and strong Australian commercial relationships rather than simply having available cultivation capacity.
Why Thailand's growth changes the market
Thailand recorded the most dramatic shift.
Australian imports from Thailand increased from 1,093 kilograms in 2024 to 20,658 kilograms in 2025. That moved Thailand from a minor supplier to approximately one quarter of Australia's imported cannabis in a single year.
For buyers, more sourcing options can create negotiating leverage and reduce reliance on one country.
For exporters, it means international markets can become significantly more competitive in a short period.
Why domestic production may matter even more
The larger structural change may be happening inside Australia.
Domestic production increased from 42,420 kilograms in 2024 to 55,337 kilograms in 2025. When domestic cultivation is combined with imports, Australian production represented the single largest source of available cannabis by country.
This changes the competitive calculation for foreign suppliers.
Importers are no longer evaluating Canadian products only against cannabis from other exporting countries. They are also comparing imported products with an expanding domestic industry.
That can create pressure around landed cost, delivery time, inventory commitments, currency exposure, and supply reliability.
Why quality standards remain part of competition
Lower pricing alone does not guarantee Australian market access.
The Therapeutic Goods Administration requires medicinal cannabis supplied to Australian patients to meet TGO 93 quality standards. Overseas manufacturing must also satisfy specified Good Manufacturing Practice requirements, with Australian sponsors responsible for maintaining evidence of compliance.
The Office of Drug Control separately requires appropriate import licensing and a permit for each applicable shipment.
That means international competition is not simply a race to grow cannabis cheaply. Suppliers need reliable documentation, compliant manufacturing, consistent testing, and dependable logistics.
Why supply contracts deserve another look
Rapid changes in sourcing can affect long term agreements.
Buyers may gain negotiating power as more domestic and international supply becomes available. Producers with large cultivation footprints may face inventory pressure if expected export demand changes.
If international supply conditions are changing your purchasing or production assumptions, complete the Puro Risk intake form to identify contract, inventory, transportation, product, and insurance exposures before renewing major commitments.
Conclusion
Canada still dominates Australia's medical cannabis imports, but 2025 shows that leadership is no longer uncontested.
Thailand has rapidly gained share, Australian domestic production is expanding, and Australia itself is exporting more cannabis into international medical markets.
The universal operator lesson is straightforward. International market access should never be treated as permanent. Operators need competitive pricing, compliant products, dependable supply, strong contracts, and enough flexibility to adjust when new producers enter the market.
Educational note: This article is for education only and is not legal, regulatory, medical, financial, investment, international trade, product compliance, tax, or insurance advice.
What to do this week
• Review international supply contracts for volume and pricing commitments
• Compare domestic and imported landed costs in Australia
• Confirm current TGO 93 and manufacturing quality documentation
• Review inventory levels against realistic demand forecasts
• Identify concentration risk involving countries, suppliers, and customers
• Build scenarios for stronger Australian production and additional international competition
FAQ
How much medical cannabis did Australia import in 2025?
Australia imported 81,119 kilograms of cannabis for medical purposes in 2025.
How much came from Canada?
Canada supplied 49,107 kilograms, representing about 61 percent of Australia's cannabis imports.
How quickly did Thailand gain market share?
Thailand supplied 20,658 kilograms in 2025 compared with only 1,093 kilograms in 2024.
Is Australia producing more cannabis domestically?
Yes. Domestic production increased to 55,337 kilograms in 2025 from 42,420 kilograms in 2024.
Does imported medical cannabis have to meet Australian quality requirements?
Yes. Medical cannabis supplied in Australia is subject to Australian quality requirements, including TGO 93 and applicable manufacturing standards.
What is the biggest operator takeaway?
International supply positions can change quickly. Exporters and buyers need disciplined pricing, quality compliance, diversified relationships, inventory control, and flexible contracts.
Medical cannabis import shipment undergoing compliance inspection
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SOURCES
StratCann, Canadian Cannabis Still Dominates Australian Medical Market While Thai Imports Increase And Domestic Supply Increases, August 23, 2026
https://stratcann.com/news/auustralia-cannabis-imports-canada-thailand/
StratCann reports Canada's 61 percent import share, Thailand's rapid increase, growing Australian production, and changes in international sourcing.
Australian Government Office of Drug Control, Australian Cannabis Data: Import, Export, Production And Stock, updated August 19, 2026
https://www.odc.gov.au/australian-cannabis-data-import-export-production-and-stock
Official Australian data reports 81,119 kilograms of imports, 49,107 kilograms from Canada, 20,658 kilograms from Thailand, 55,337 kilograms of domestic production, and 6,780 kilograms of exports in 2025.
Therapeutic Goods Administration, Complying With The Quality Requirements For Medicinal Cannabis
https://www.tga.gov.au/resources/guidance/complying-quality-requirements-medicinal-cannabis
The TGA confirms that medicinal cannabis imported into or supplied in Australia must meet TGO 93 requirements and that overseas manufacturing must satisfy applicable Good Manufacturing Practice standards.
Canada still supplies most of Australia's imported medical cannabis, but Thailand rapidly gained market share in 2025 while Australian domestic production reached a new high. The shift shows an increasingly competitive supply chain where pricing, quality standards, contracts, inventory, and reliable international market access matter more.