Australia's Most Comprehensive Medicinal Cannabis Report Published for Q1 2020

FreshLeaf Analytics has released an in-depth analysis of the patients, products and pricing of the Australian cannabis industry for Q1 2020.

The Southern Cannabis Holding Company's global research house, FreshLeaf Analytics, has just released its fourth report monitoring the products, patients and pricing of the Australian medicinal marijuana market.

The report's publication is sure to make the Australian cannabis market sit up and take notice, as Freshleaf has been covering the sector since 2017 and is considered to be the leading source of data on the industry.

This report demonstrates that the medical cannabis market in 2020 will be characterised by lower prices, more product variety, and more doctors considering medical cannabis as a treatment option. FreshLeaf is excited to support our clients through this dynamic period in Australia's medical cannabis journey.

Freshleaf Analytics Principal Consultant, Rhys Cohen

The biggest takeaway from FreshLeaf's Q1 2020 report—which is the most comprehensive analysis of the Australian cannabis industry available thus far—is that patient access and price competition is increasing dramatically, which is great news for consumers.

More importantly, the study's data also indicates that an "explosion in patient numbers" is potentially imminent.

According to the report, although the Australian cannabis industry already experienced an astonishing 600% increase in active medicinal cannabis patients during 2019, this number could potentially triple by the end of 2020.

southern cannabis holdings
Disclaimer: Past performance is not an indicator of future performance.

The study's authors identified several crucial factors which are expected to drive this rapid increase in patient numbers, including improved availability and declining product prices, which have fallen by approximately 17.4% since Q3 2019.

 "As the market grows towards 30,000 active patients this year, revenues and volumes of products sold will, naturally, grow substantially," the report states.

"Based on our forecasts FreshLeaf expects the Australian market for medicinal cannabis to close the year at a run rate (annualised) approaching $150m in product sales and a product consumption rate (annualised) approaching 1,000kg of cannabinoids."

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Healthcare providers growing familiarity with medicinal cannabis products and the continued expansion of "specialist clinic chains" were similarly identified as key factors that will influence the market.  

Over the last six months the amount of medicinal cannabis products accessible by Australian patients also rose from 76 to 100. This increase included the arrival of multiple lower cost product options, which has significantly reduced the barrier to entry for less financially solvent patients.

Additionally, the average daily patient dose rose by more than 60% during this period, while the arrival of over-the-counter CBD products was identified as a potential legislative victory that could take place later this year.

Disclaimer: Past performance is not an indicator of future performance.

The CEO of Southern Cannabis Holdings, Tim Drury, explained that the data indicates that Australia's cannabis market is entering into a new stage of maturity, which is expected to be characterised by significant material revenue growth.  

"This report points to 2020 becoming the year in which the number of active patients reaches a commercially meaningful level."

"The Australian market has already been a leader of best-practice in product standards, patient monitoring, clinical services and research, and is now showing signs of maturity to "Cannabis 2.0", the next phase of industry growth defined by companies with real revenues, cash-flows and profits," Drury said.

You can read the full FreshLeaf Analytics report here.

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Hugo Gray
Hugo Gray

Hugo Gray is a Melbourne-based journalist with a body of work that covers a diverse range of topics, including immigration law, sex technology, and now the rapidly expanding cannabis industry.

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