New Zealand’s medical cannabis market grew a further 25% in 2025, according to the latest official figures, seeing the country cement its position as one of the lesser-discussed but most exciting markets on the planet. 

Figures published by Medsafe under section 29 of the Medicines Act 1981 show total packs of medicinal cannabis products supplied to the New Zealand market reached 380,021 in 2025, up from 305,313 in 2024.

Dig a little deeper into these figures, however, and the widening cracks in this seemingly thriving market become hard to ignore. 

Last year’s double-digit growth rate was less than half of the 69% growth seen in 2024 and the 185% growth seen in 2023, exposing a sharp deceleration. 

It comes just weeks after one of the country’s largest operators, Helius Therapeutics, called in administrators, pointing to ‘the current commercial and regulatory environment’ which it says has made it ‘very challenging’ to operate sustainably. 

Helius is far from alone in its criticism of New Zealand’s current regulatory environment, and industry insiders have warned that without reform, further collapses are unavoidable. 

What does the latest data show?

The latest official data, published on March 20, 2026, shows that total packs of medicinal cannabis products supplied to the market in 2025 were nearly five times the 63,630 recorded in 2022. 

Throughout 2025, THC-only pack volumes surged 60% between January and July, reaching a 2025 high of 28,511 packs in July, before falling back 33% to 19,198 by December. 

Overall, second-half supply was only 7% ahead of the first half, a significant narrowing given the growth rates recorded earlier in the year. 

Speaking to the New Zealand Herald in March 2026, Cannabis Clinic chief executive Waseem Alzaher said that stock shortages were affecting thousands of patients across the market. 

This was mirrored by Helius Therapeutics CEO, Vicky Taylor, who confirmed that the company had been experiencing its own supply difficulties since December 2024. The Ministry of Health, asked about the situation, said it had not been alerted to any widespread shortages. 

Number of packs of products reported as containing tetrahydrocannabinol as the primary active ingredient only

Furthermore, the data shows a significant shift of supply from CBD-dominant to THC-dominant products. In 2022, CBD-only products accounted for 61% of all packs supplied, with THC-containing products, both THC-only and combination packs, making up the remaining 39%. 

By 2025, that balance had inverted, with THC-containing products now representing 80% of the supply, while CBD-only products accounted for just 20%.

Number of packs of products reported as containing both tetrahydrocannabinol and cannabidiol as active ingredients

THC-only packs have been the primary engine of market growth throughout the period. From 14,752 packs in 2022, THC-only supply grew 551% to 96,064 in 2023, a further 115% to 206,386 in 2024, and a further 33% to 274,266 in 2025. 

Conversely, after growing 74% between 2022 and 2023, and just 12% between the next year, CBD pack volumes were effectively flat between 2024 and 2025, dropping from 74,866 to 74,297 packs annually.

It’s worth noting that the Ministry of Health itself cautions that the ‘number of packs supplied cannot be used to determine the number of prescriptions issued, the number of patients taking medicinal cannabis products or the number of doses’. 

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Helius Therapeutics

Helius, at its peak the country’s largest domestic producer and the first local company to meet the stringent minimum quality standards required under the Medicinal Cannabis Scheme when it launched commercially in October 2021, collapsed into voluntary administration earlier this month. 

Given the company’s prominence and financial backing from software billionaire Guy Handleton, its downfall will be a worrying signal for the country’s remaining operators. 

Approximately a year before administrators were appointed, Haddleton circulated a message to investors acknowledging that the company’s chief executive had resigned with immediate effect and that sales performance was falling short of expectations. 

He committed a NZ$1 million loan to buy time for a strategic review, brought in former Fletcher Building distribution head Bruce McEwen to assist, and recruited a chief growth officer. He described the product pipeline as ‘exciting’ and told investors he remained ‘quietly confident’ in the business.

In August 2025, the company acquired prescribing clinic Cannaplus, broadening into patient-facing services. The following month, Vicky Taylor joined as chief executive. By December 2024, the company was already experiencing supply difficulties that Taylor later acknowledged publicly.

When Daniel Stoneman and Neale Jackson of Calibre Partners were appointed as voluntary administrators, they cited ‘a sustained period of trading losses driven by high operating costs and a challenging regulatory environment.’ 

Under New Zealand’s Medicinal Cannabis Scheme, every product seeking market approval must go through a dossier-based registration process applying pharmaceutical-grade standards, a system that, while producing internationally credible products, makes importing finished medicines from Canada or Australia demonstrably cheaper and faster than manufacturing domestically.

Industry sources describe a market in which imports have come to dominate supply, with Canada and Australia the two primary suppliers. For vertically-integrated operators who built expensive facilities in anticipation of a market that developed more slowly than projected, those fixed costs became a major financial burden. 

Cannasouth, the first medicinal cannabis company to list on the NZX in 2019, was placed into administration in March 2024 and subsequently delisted. Its liquidators attributed the failure in part to insufficient funds and high operating costs. The company survived insolvency in a much-reduced form. 

Aether Pacific Pharmaceuticals, formerly Medical Kiwi, entered liquidation in February 2024. Greenfern, another NZX-listed operator, had receivers and liquidators appointed in early 2025; its receivers noted it had struggled in a market that was not growing fast enough to support its cost base. Canadian firm Tilray, one of the earliest international entrants, exited the New Zealand market in 2025.

Of the NZX-listed operators, only Rua Bioscience remains, but it has come after a major restructuring project. The company sold its cultivation and manufacturing infrastructure, opting for a capital-light model focused on genetics and product distribution, with manufacturing outsourced. 

As the market’s once enviable growth continues to slow, calls for a revision of the country’s regulations are getting louder. 

Regulation Minister David Seymour has indicated openness to revisiting the domestic framework, noting that Medsafe is already processing export licences 56% faster than in 2023. “I’m open to looking at how we can improve regulation for the domestic market as well,” he said. “I encourage suppliers to contact the Ministry for Regulation with their concerns.”