Insights from a Nationwide Distributor of Medicinal Cannabis in Australia
Article Written by Lisa Varley
The medicinal cannabis market in Australia is a promising landscape, experiencing significant growth driven by a myriad of factors as the market evolves. We are witnessing a rise in patient awareness, continuous advances in product development, diverse delivery formats, and a shift towards a more medical focus. Analysing trends from a distributor perspective provides valuable insights into the types of products being released, various formats, and current product trends, all pointing towards a bright future for the industry.
However, significant barriers remain regarding both consultation fees and medicinal cannabis product costs and a lack of education among healthcare professionals. Added to this is the unequal treatment of medicinal cannabis when compared to other prescription drugs in Australian workplaces and random roadside drug testing, all of which hinder access to patients and many who could benefit from the medicinal properties of cannabis. Many patients go without for fear of losing their jobs, their driver’s license, or both.
Market Trends
In the last 12 months, our Wholesale business has experienced a remarkable growth of 100%, a testament to our commitment and the potential of the medicinal cannabis market. The number of brands we partner with has also grown significantly, from 25 to 65, making us the wholesaler with the largest range in Australia. With the five categories defined by the TGA, each category has approximately eight different formats; however, flower continues to dominate, a clear indication of our successful product strategy.
If we look at demographics, our data shows that in the more affluent suburbs, most products dispensed are premium and more expensive than in lower socio-economic areas, where patients are cost-conscious.
Product Categories and Trends
Flower
The cannabis flower format remains the undisputed leader in the Australian market, known for its rapid onset of action and versatility. It can be smoked, vaporised, or used in various forms of edibles. A staggering 70% of The Entourage Effect’s sales are flower, indicating its popularity. Furthermore, our flower sales predominantly comprise premium products, demonstrating that patients are willing to invest in quality. The price range for these high-end products is $150-$170 for 10g.
Trends in Flower
Strain Specialisation: The demand continues for specific strains tailored to medical conditions. While strains high in CBD are popular for their anti-inflammatory and analgesic patients, the high-THC strains are the most sought-after for acute and prescribed for severe pain relief, appetite stimulation, and relaxation.
Organic Cultivation: Patients are increasingly seeking organically grown cannabis flowers free from pesticides and other harmful chemicals.
In earlier days, the focus was on the differences between a Sativa and an Indica. We are now seeing many hybrids coming to market, and there is much more awareness of terpenes and their value and how they play a huge part in determining the effect of medicinal cannabis; however, more education and awareness are critical. This, though, is compromised by strict advertising regulations and the inability to get in front of doctors given the huge increase of Telehealth Clinics that do not allow visits from MSLs to teach them more about medicinal cannabis, the endocannabinoid system, and the benefits that the plant offers. We are seeing more interest in minor cannabinoids such as CBG and CBN.
Oils
Oils and tinctures are favoured by those who do not like to vape; they are easy to administer and titrate, enabling ease of use and more precise dosing. They can be administered sublingually, added to food and drinks, or even put in an empty capsule to swallow. Oil prices are higher than flower; however, newer entrants are lowering prices. The most popular oil products we see are high THC, i.e., 25% to 30%, and CBD full spectrum, and there are quite a few CBD200 products available at around $165. Price is a consideration with oils, especially as some therapeutic areas require high doses for optimal efficacy. Oils are most commonly prescribed to treat inflammatory disorders and anxiety.
Trends in Oils
Flavoured Oil: We see increased flavoured oil options, making them more palatable for patients. There are a variety of flavours ranging from the more standard strawberry to the more exotic limoncello. We do not see many sales; however, the flavoured oils are among the few brands we do not stock.
Capsules and Tablets (Wafers)
Although convenient for patients, capsules and tablets remain slow to be adopted, and one drawback is the cost and a much slower time of onset of action. To be effective, especially for inflammatory disorders for which CBD full spectrum is typically prescribed, high doses are needed, and most capsules are low doses, meaning a substantial number need to be taken, making this expensive.
Further, capsules are not suitable for acute problems but rather chronic ones as their bioavailability is slower than other methods of ingestion. This format does not show great growth; it remains flat based on our in-house data. There are several products available, but many are being discontinued.
Vapes
Vapes continue to grow in popularity and are rapidly gaining traction. They are fast-acting, making them very useful for acute concerns such as pain and anxiety.
Edibles
Edibles offer an alternative to inhalation methods, providing a longer-lasting effect that appear to benefit chronic pain and insomnia. At this stage, only a few brands offer edibles, with many more planning to market. Currently, 7 different edibles/chews/pastilles are in the market and appear very popular. You can get 30 gummies for around $100 and 60 for around $150. The strongest available currently is a 15:15 balanced gummy, and the most popular is THC 10%.
Trends in Edibles
Microdosing Options: Small-dose edibles allow patients to manage symptoms without significant psychoactive effects.
Health-Conscious Edibles: There is a rising demand for vegan, gluten-free, and sugar-free edibles to cater to dietary restrictions and preferences.
Topicals
Topical applications are becoming increasingly popular for localised relief of pain, inflammation, and skin conditions. Currently, six topicals in the market are predominantly prescribed for arthritic and muscle pain. Price points are $100 -$150 for 30-60ml; however, we are not seeing much movement of these products thus far.
Conclusion
The medicinal cannabis market in Australia is characterised by dynamic growth. Initially, Nationwide distributors were at the forefront; however, many Suppliers are now selling directly or doing their distribution, making it very hard to get correct data on what is being prescribed and why.
Furthermore, many Pharmacies are not interested in buying from several Suppliers. The market sees a diverse range of products, with new entrants weekly. These formats range from traditional flowers and oils to more innovative and advanced formulations such as controlled time-release capsules, cannabis-infused topicals, wafers, vapes, buccal sprays, edibles, and more.
We can only hope that the stigma will eventually go away and medicinal cannabis can be seen as a superior alternative treatment that not only offers rapid and long-term symptom relief but, over time, also fixes the medical condition.
Lisa Varley is a highly accomplished CEO with significant experience in the Pharmaceutical and Complementary Medicine Industries. Her extensive career is marked by significant leadership roles and a strong track record of driving growth and innovation. Lisa has played a key part in the development and commercialisation of various medical products and therapies, leveraging her deep expertise in navigating complex regulatory environments and her ability to foster strong strategic partnerships. Previously, Lisa served as the Managing Director of Beacon Medical, where she was pivotal in expanding the company's market presence. Under her leadership, Beacon Medical achieved remarkable milestones in market penetration, solidifying its position as a key player in the healthcare sector. Her leadership style is characterised by a very pragmatic yet visionary approach, strong commercial and operational acumen and a commitment to advancing patient care. Lisa Varley has been recognized throughout her career for her strategic insights, exceptional management skills, and dedication to improving patient outcomes.
Disclaimer: This information is shared with a global readership for educational purposes only and does not constitute medical or business advice. All patient-related information has been de-identified OR fictional to protect privacy. Nothing in this article is intended to promote the use or supply of medical cannabis to members of the public.
