Cannabis Testing Market: Overview
The global cannabis testing market size was worth USD 975.2 million in 2021 and is estimated to grow to USD 2952 million by 2030, with a CAGR of approximately 13.10 percent over the forecast period.
Cannabis drug testing is becoming more popular in the legal, sports, and pharmaceutical industries. The government’s strict regulatory standards, which are in place to guarantee excellent product quality, are expected to accelerate market growth. The demand for cannabis testing services is increasing due to an increase in contamination incidents, which is the main driver driving market expansion. During production, the cannabis plant is exposed to several pollutants, primarily lead and copper from the earth, fungi, mildew, and pesticides. Another significant factor influencing the expansion of the market for cannabis testing services is the growing legalization of medical cannabis across several nations. Independent laboratories are in high demand because of the growth in the cannabis business. But every nation has its testing laws. The market will likely increase over the forecast period as leading companies increasingly employ inorganic expansion techniques like acquisition. However, the high startup costs for cannabis testing labs are one of the major barriers in this market. These labs must shell out a lot of cash for the purchase and upkeep of pricey, cutting-edge analytical equipment. Additionally, nations with tougher regulations could need additional equipment with advanced features and great precision. As a result, it has shown to be a major obstacle for the expanding testing services market. The cannabis testing market’s expansion is predicted to be hampered by the absence of testing standardization.
Cannabis Testing Market Drivers:
The widespread acceptance of the usage of medical cannabis is the main factor contributing to the market’s expansion. Cannabis is increasingly being used legally for medical reasons. However, laws regarding possession, distribution, cultivation, and approved medical uses vary nationwide. Additionally, a growing body of research favors using marijuana for medical purposes. Another significant factor influencing the expansion of the market for cannabis testing services is the growing legalization of medical cannabis across several nations. Independent laboratories are in high demand because of the growth in the cannabis business. Other reasons driving the market include rising awareness of and using software services in labs testing cannabis.
Cannabis Testing Market: Restraints
The market expansion of cannabis (CBD) testing is predicted to be constrained by the high cost of laboratory equipment and the lack of consistency in quality standards during the projected period. The most significant and crucial obstacle to the market’s expansion will be stringent government regulations and costly startup costs. The lack of testing standardization is anticipated to impede the growth of the cannabis testing market.
Cannabis Testing Market: Segmentation
The global cannabis testing market has been segmented into product, type, end-users, and portability.
Based on type, microbial analysis, residual solvent screening, potency testing, heavy metal testing, pesticide screening, terpene profiling, and genetic testing are market segments. In 2021, the potency category dominated the global market. Cannabis profiles, commonly referred to as “potency,” are a crucial component of cannabis testing. Cannabis plants naturally produce cannabinoids, which control the overall impact and potency of the cultivar, also known as the strain. Several cannabinoids function as medications in various ways. The best method for determining potency is using conventional high-performance liquid chromatography (HPLC), which has emerged as the industry standard for examining cannabis profiles. The market is also estimated to expand due to an increase in the number of new products for determining potency. On the other hand, the heavy metal testing segment is estimated to grow at the fastest rate over the upcoming years. Metals can be present in soils and fertilizers in various forms. Cannabis plants have the propensity to extract and absorb certain metals as they grow. A class of metals known as heavy metals is regarded as harmful. The most prevalent heavy metals are mercury, lead, cadmium, and arsenic. Most labs must screen samples to ensure they do not contain more of these four hazardous metals than permitted.
Based on end-users, the cannabis testing market is classified into testing laboratories, drug manufacturers, and research institutes. The drug manufacturers segment dominated the market in 2021. The main drivers of the segment’s growth are the expanding acceptability of marijuana as a treatment and the increase in cannabis-based clinical trials by major pharma companies like Sanofi, Solvay Pharmaceuticals, and Pfizer. Additionally, these growers are required to provide manufacturers and wholesalers with a variety of plant kinds at varied prices based on the levels of CBD and THC in each variety. These are the primary factors fostering the segment’s expansion.
On the other hand, the testing laboratories segment is anticipated to grow at the fastest rate over the upcoming years. The market for clinical laboratory services is anticipated to be driven by the rise in at-home testing for illness diagnosis and routine health condition monitoring. Clinical laboratories frequently adopt international standards, which might open the potential for automation and interoperability.
Cannabis Testing Market: Regional Landscape
North America dominated the market for cannabis testing in 2021. The existence of many of the region’s producers and an increase in testing labs because of the government’s stringent laws for marijuana farmers are the primary factors influencing the market growth in this region. Due to stringent government regulations for cannabis growers, there are many cultivators and more testing labs in the North American region. These factors are major factors encouraging market expansion in this region. The market is anticipated to rise because of several factors, including collaborations between big corporations and an increase in research initiatives.
Cannabis Testing Market: Competitive Landscape
Some of the main competitors dominating the global cannabis testing market include- Purple Scientific, Orange Photonics, Inc, Agilent Technologies, Inc., SHIMADZU CORPORATION, Merck Kagan, Rested Corporation, WATERS, Canarsie Analytics, Accelerated Technology Laboratories, Inc., Digi path Inc
- March 2021-PerkinElmer introduced an industry-first Certified reference material (CRM) reagent and consumable kit to accelerate cannabis pesticide testing processes.
- August 2022- Agricore, Botana, and Can-Lab merged to form SC Labs, which now provides seamless cannabis testing services throughout California, Michigan, Oregon, and Colorado as well as nationwide hemp testing capabilities.
COVID-19 Impact on Cannabis Testing Market:
The COVID-19 pandemic has harmed several global businesses, and the cannabis testing market is no exception. To slow the pandemic’s rapid spread, administrative organizations globally put many restrictions into place, such as lockdowns and enforced social seclusion. The cannabis testing market suffered due to the global production facilities being forced to close during the early phases of the pandemic. The epidemic directly impacts small and medium-sized businesses, which are the main technology suppliers to the cannabis testing industry. The limited movement of goods and persons due to the lockdown practices during the early stages of the epidemic’s propagation also impacted the cannabis testing market.
Global Cannabis Testing Market is segmented as follows:
Cannabis Testing Market by Product
- Analytical Instruments
- Chromatography Instruments
- Other Analytical Instruments
Cannabis Testing Market by Type
- Potency Testing
- Microbial Analysis
- Residual Solvent Screening
- Heavy Metal Testing
- Pesticide Screening
- Terpene Profiling
- Genetic Testing
Cannabis Testing Market by End User
- Testing Laboratories
- Drug Manufacturers
- Research Institutes
Cannabis Testing Market by Portability
- Stand alone
- Handheld Devices
Cannabis Testing Market by Region
- North America
- The UK
- Rest of Europe
- Asia Pacific
- New Zealand
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America
|Cannabis Testing Market Report Scope
|Market Size Value in 2022
|USD 1102 million
|Revenue Forecast in 2030
|USD 2952 million
|CAGR of 13.1 % from 2022 to 2030
|Base Year for Estimation
|2017 – 2021
|2022 – 2030
|Revenue in USD million and CAGR from 2022 to 2030
|Revenue forecast, company ranking, Trends
competitive landscape, and growth factors
|Product, Type, Portability, End User, and Region
|North America; Europe; Asia Pacific; Latin America; Middle East & Africa
|U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico and Others
|Key Companies Profiled
|Purple Scientific, Orange Photonics, Inc, Agilent Technologies, Inc., SHIMADZU CORPORATION, Merck Kagan, Rested Corporation, WATERS, Canarsie Analytics, Accelerated Technology Laboratories, Inc., Digi path Inc