New Zealand's medical cannabis sector struggles to meet demand

The medical marijuana in New Zealand is expanding rapidly, but is now facing major growth challenges. While patient access has exploded since the launch of medical cannabis program in 2020, The companies warn that regulatory blockages and supply shortages could threaten market viability.

Explosive growth in prescriptions

The rise of medical marijuana in New Zealand has been nothing short of spectacular. According to official data, «the number of medical cannabis products dispensed rose from 4,875 in 2020, when the program was launched, to 265,731 in 2025».

This exponential increase reflects both growing acceptance among patients and a greater willingness on the part of healthcare professionals to prescribe cannabis-based medicines. Since 2020, more than 80 products have been approved, including 25 new ones in 2024 alone.

Initially dependent on imports, the country has made a major important step in 2022 by authorizing national culture, with the aim of strengthening supply chains and reducing dependence on foreign producers.

Despite this progress, the sector is now facing a critical problem: product shortages. Clinics and suppliers report that these supply disruptions affect thousands of patients, sometimes forcing them to change their treatment abruptly.

Waseem Alzaher, Managing Director of Cannabis Clinic, emphasized the scale of the problem: «Because it leads to treatment discontinuation and forces us to switch patients to other products.»

Such disruptions are particularly problematic in a medical context, where continuity of treatment is essential. These shortages are not isolated incidents, but appear to reflect systemic constraints within the current regulatory framework.

Regulatory obstacles are slowing down the sector's development

Industry players claim that the regulations is now one of the main obstacles to growth. One of the issues frequently raised concerns the strict shelf-life rules imposed on certain products. While identical formulations can remain stable for up to a year in other markets, New Zealand regulations sometimes limit them to just three months.

According to Alzaher, «legislation stands in the way and makes no sense», particularly when it complicates import planning and inventory management.

Other bottlenecks include lengthy product approval processes, complex quality standards and limited flexibility to increase production or exports. These constraints prevent companies from reacting quickly to fluctuations in demand.

The regulatory environment is also creating financial strains for operators. Companies have invested heavily in infrastructure to meet stringent compliance requirements, only to see the market take off more slowly than expected.

Vicky Taylor, CEO of the Helius Group, explained, «We don't make breakfast cereals, we grow a plant and process it under highly regulated conditions with rigorous testing requirements, which takes time.»

High operating costs, combined with supply chain inefficiencies, push some companies to the brink.

Government open to reform

Authorities acknowledge the challenges, but maintain that the regulatory framework aims to strike a balance between patient safety and industry viability. Officials say they are in regular contact with stakeholders and continue to approve new products.

David Seymour, Minister for Regulation, has expressed his willingness to adapt policies: «I'm willing to look at how we can improve regulation for the internal market too; I encourage suppliers to contact the Department for Regulation with their concerns.»

To date, efforts have focused on optimizing export procedures, with licensing times cut by more than half since 2023. But on the domestic market, industry professionals are now calling for faster, more concrete reforms. For patients, the stakes are crucial: access to stable, effective and continuous cannabis-based treatments remains closely linked to the ability of the regulatory framework to adapt.