Cannabis Legalization

The Misuse of Drugs (Medicinal Cannabis) Amendment Act 2018 came into force on December 18, 2018, with the aim of improving access to medicinal cannabis for New Zealanders who are suffering from terminal illness. The bill allows companies to manufacture medical cannabis products for domestic and international markets and also removes cannabidiol as a controlled drug, instead making it a prescription medicine.

Regulations to enable a Medicinal Cannabis Scheme were passed on the December 16, 2019, and came into effect on April 1, 2020. Health Minister Dr. David Clark said that could open the door to medical cannabis use for approximately 25,000 New Zealanders. Medical cannabis products are only available on prescription and can be imported from overseas only through a doctor, nurse practitioner or pharmacist prescriber. Any doctor can prescribe medical cannabis.

In New Zealand, medical cannabis is available in dried flower form for inhalation via a vaporiser or tea preparation for oral consumption, or in a pharmaceutical dosage form – including oral liquids, sublingual solutions, sublingual sprays, tablets, and capsules.

New Zealand Cannabis Business Plan Sample

Prior to being supplied to patients, medical cannabis products must be verified using the minimum quality standard which is defined in the Misuse of Drugs (Medicinal Cannabis) Regulations 2019. Medical cannabis products are required to be tested by by a Good Manufacturing Practice-certified manufacturer or laboratory. The Ministry of Health has a published list of medical cannabis products that meet the minimum quality standard.

While products that meet the minimum quality standard can be legally prescribed to patients, they are still called “unapproved medicines” since their safety and efficacy has not been assessed.

The Ministry of Health has allowed access to local medicines from September 9, 2022, opening up new opportunities for cannabis growers and manufactures in New Zealand. Helius Therapeutics, the largest licensed medicinal cannabis company in New Zealand, has become the first manufacturer to receive GMP (Good Manufacturing Practices) certification from MedSafe, which allows it to produce medicines with THC.

In 2023, New Zealand’s Medicinal Cannabis Agency received approval to make a number of changes to the Medicinal Cannabis Scheme, including changing the quality requirements for exports of medicinal cannabis so New Zealand companies can access markets more readily, and enabling a license to possess controlled drugs to be issued for non-therapeutic research with cannabis plant material or products sourced from the Medicinal Cannabis Scheme or the Industrial Hemp Framework.

In July 2024, the New Zealand government amended the Misuse of Drugs Regulations, stating that operators exporting medical cannabis now only have to meet the quality standards in the countries they are exporting to. There is no requirement to meet the quality standards of New Zealand. This means that products with cannabis-based ingredients that cannot be sold in New Zealand, can still be exported globally.

How to Start a Cannabis Business in New Zealand?

Cannabis Market in New Zealand

Licensees and Production

In 2020, there were 20 companies licensed to grow cannabis for research purposes, and in 2023 the number of cannabis companies increased to 37 nationwide. According to the Medicinal Cannabis Agency, there were 43 license holders as of December 2025.

In 2023, around 53 hectares of land in New Zealand were licensed for growing cannabis and it was estimated that 71.3 tonnes of cannabis were produced in that year.

According to data from the New Zealand Ministry of Health, the supply of medical cannabis products has grown rapidly in recent years. Between 2018 and 2020, the number of supplied packs – containing either cannabis flower or oil – increased tenfold, reaching 20,050 packs by 2020. This upward trend continued, with 42,590 packs supplied in 2021 and 63,630 in 2022.

The pace of growth accelerated significantly in 2023, when supply surged by 185% to reach 181,242 packs. By 2024, total supply had climbed further to 305,313 packs. In the first three quarters of 2025, already 278,914 packs have been supplied – representing a 20% increase compared to the same period in 2024.

Initially, the majority of medical cannabis supplied in New Zealand had only CBD as the primary active ingredient. In 2020, such products accounted for 93% of all supplied packs. However, the composition of supplied products has shifted significantly since then. By 2024, packs containing tetrahydrocannabinol (THC) as the primary active ingredient made up 68% of the total supply. Products containing both THC and CBD as primary active ingredients represented a smaller share, accounting for approximately 8% of packs supplied in the same year.

Consumers and Market Outlook

The New Zealand Drug Trends Survey for 2024 reveals that around 37% of medical cannabis users reported having a prescription for medical cannabis – a threefold increase from just 9% in 2022-23 period – demonstrating that New Zealanders are increasingly choosing to source their cannabis from legal, safe sources.

The survey also found that the percentage of respondents reporting using a vape to consume cannabis in the past 6 months consistently increased: from 18% in 2020 to 25% in 2024. Among them, 20% use cannabis dry herb in vapes.

According to data from the New Zealand Ministry of Health, during the 2022/23 period, an estimated 14.2% of adults had used cannabis at least once in the past year while 4.7% reported weekly use of cannabis. For the 2023/24 period, prevalence of past-year cannabis use rose to 16%. The Drug Trends Survey for 2024 found that 65% of the respondents would like to see recreational cannabis legal in some form; 28% believe it should be strictly regulated like the tobacco market, 25% believe it should be lightly regulated like the alcohol market, and 6% believe it should be a free market. Among those who do not want recreational cannabis legalized, a vast majority believe it should be decriminalized.

The Medicinal Cannabis Council of New Zealand estimated the sector to be worth around NZD$200 million. According to Prohibition Partners’ Global Cannabis Report: 5th Edition, New Zealand’s cannabis market was projected to double in value from 2024 to 2028, resulting in a compound annual growth rate (CAGR) of 18.9%. Applying this CAGR results in an estimated value of NZD$237.8 million in 2025.

According to newly released research by Wellington-based Business and Economic Research, New Zealand cannabis industry is valued at more than $1.5 billion based on the estimated 74,000 kilograms of cannabis consumed annually in the illicit market, and the report assumes that only 67% of total consumption – about 50,000 kilograms – would be sold through licensed retail stores.

New Zealand Cannabis Market Infographics

How Can Cannabusinessplans Templates Help Start or Grow Your Cannabis Business?

The majority of cannabis licensing programs require the submission of a business plan as part of the application for a cannabis license. Even if it is not mandated by law, a business plan is essential for securing funding and assisting an applicant in understanding how much money it will take to start a cannabis business and how much profit it could make.

A well-structured business plan can make all the difference in helping you demonstrate your proposed cannabis business’ compliance with regulations and its operational viability.

Our complete cannabis business plan template package is everything you need to create a professional business plan for a cannabis business with expert financials and projections. A complete cannabis business plan template package includes:

• Excel Financial Model: change variables and immediately see the impact, break down operational and capital costs, know how much it will take to get into the business and the potential profits.
• Word Business Plan: value proposition, market analysis, marketing strategy, operating plan, organizational structure, financial plan and more.
• PowerPoint Pitch Deck: provide a quick overview of your cannabis business plan.

Cannabis Cultivation, Extraction and Manufacturing Business Plan Sample, New Zealand

We also offer hemp/CBD business plan templates at hempcbdbusinessplans.com.

New Zealand Hemp Industry

Templates for other countries are available at cannabusinessplans.com.