Global Cannabis Testing Market Size by Product and Software/Services (Analytical Instruments, Cannabis Testing Services), By Types of Testing (Potency Testing, Pesticide Screening, Heavy Metal Testing, Genetic Testing), By End-User (Laboratories, Research Institutes, Drug Manufacturers, Cultivators)

Cannabis Testing Market Size And Forecast

Cannabis Testing Market size is valued at USD 3 Billion in 2023 and is anticipated to reach USD 4.15 Billion by 2031, growing at a CAGR of 12% from 2024 to 2031.

• Cannabis testing is the method of analyzing cannabis samples to find their quality, safety, and potency. It primarily helps to determine THC, CBD, and terpene levels, as well as contaminants and debasements like remaining solvents, form, illness, bothers, and pesticide buildup.
• The testing ensures that the consumers have access to a product with consistent properties and all potential contaminants or harmful substances are identified.
• Manufacturers utilize testing throughout the cultivation and processing stages to confirm product consistency and whether it has met the desired characteristics.
• Most importantly, the regulatory bodies across the world ensure that cannabis products meet the quality and safety standards. Thus, cannabis testing plays a vital role in maintaining transparency between consumers and the industry by ensuring safety and quality of cannabis products.

Global Cannabis Testing Market Dynamics

The key market dynamics that are shaping the global cannabis testing market include

Key Market Drivers

• Global LegalizationThe expanding legalization of cannabis for therapeutic and recreational purposes in different locales is driving the need for rigid testing to guarantee item security and compliance with directions.
• Need for Quality ConfirmationAs the cannabis industry develops, there’s a increasing emphasis on quality confirmation and buyer security in the food and beverage and healthcare industries. Thus, the requirement of quality testing to eliminate contaminants, pesticides, metals, and others is spurring the acceptance of cannabis testing.
• Wellbeing and Security ConcernsBuyer mindfulness around the potential wellbeing dangers related to sullied or debased cannabis items is expanding. This has led to a more prominent request for testing administrations to confirm the security and power of cannabis items.
• Growing Trend of AdvertisementThe extended cannabis advertising, coupled with the presentation of modern item groups such as edibles, refreshments, and concentrates, is driving the need for comprehensive testing arrangements to meet administrative prerequisites and shopper desires.
• Worldwide HarmonizationEndeavors to standardize testing techniques and administrative necessities over distinctive purviews are driving the selection of standardized testing conventions, certifying authorized research facilities, and advancing showcase development.
• Technological Advancements The development of new and sophisticated testing methodslike next-generation sequencing (NGS) and advanced microbial testing techniques is projected to create immense opportunities for the growth of the market.
• Growing Acceptance of CannabisRising potential therapeutic benefits of cannabis is increasing the use of cannabis-based products. Also, the growing awareness about the application of cannabis is contributing to an increase in the sales of cannabis testing solutions.

Key Challenges

• Standardization & Administrative ComplexitiesThe need for standardized testing conventions and techniques for cannabis items poses a challenge in guaranteeing consistency and the unwavering quality of test. This could lead to disparities in testing results among distinctive research facilities. The administrative scene encompassing cannabis testing is complex and changes essentially over distinctive districts and wards. This makes challenges for testing research facilities in guaranteeing compliance with always advancing directions.
• Regulatory Uncertainties Changing regulatory standards across different regions is creating challenges for testing laboratories, as they need to adapt their procedures to meet the latest regulatory requirements. Also, the lack of clear federal regulations in some countries, like the US, creates a complex landscape for testing standards and compliance.
• Limited Knowledge As the cannabis research is still immature, lack of long-term data on the health effects of various cannabinoids and terpenes makes it difficult to establish testing standards for potential therapeutic benefits. This limited knowledge base is likely to inhibit the acceptance of cannabis testing.
• Skyrocketing Costs High cost of equipment used for cannabis testing is limiting its adoption by the budget constrained small laboratories. Also, the lack of standardized reference material for calibrating these equipment poses a huge market barrier.

Key Opportunities

• Advancements in Cannabis TestingNext-generation sequencing and other microbiological advancements are designed to offer a detailed analysis of cannabis and microbial contaminants, ensuring consumer safety. Similarly, the integration of laboratory information management systems (LIMS) helps streamlines data management, reporting efficiency, and overall laboratory workflow, enabling better data analysis and decision-making.
• Demand for AccreditationIncreasing demand for standardization and accreditation of laboratories necessitates the high quality and consistent testing, offering lucrative opportunities for the growth of the market.
• Growing Need for Quality and Public Safety The demand for advanced and efficient cannabis testing is rising to ensure consumer safety and product quality, ensuring building of brand reputation.

Cannabis Testing Market Regional Analysis

Here is a more detailed regional analysis of the global cannabis testing market

Asia Pacific

• Asian Pacific countries like Thailand, Australia, and South Korea are legalizing medical cannabis, creating a huge demand for testing services to ensure product quality and consumer safety.
• The flourishing biopharmaceutical industry in this region is intensifying research and development activities involving cannabis, driving the market.
• Increasing awareness regarding the benefits of cannabis in healthcare as  part of treatment is encouraging the government to implement regulations, propelling the market forward.
• Furthermore, growing government and pharmaceutical industries supporting and investing in the cannabis industry plays a vital role in fueling the growth of cannabis testing market in Asia Pacific. Thereby, Asia Pacific (APAC) presenting as a promising landscape for the cannabis testing market.

North America

• North America is emerging as a leading market for cannabis testing owing to the legalization of cannabis use within states such as the United States and Canada for both therapeutic and recreational purposes. Thereby, regulatory bodies, such as the US Food and Drug Administration (FDA) and Health Canada, are focusing on implementing strict laws regarding the use of cannabis in the food and beverages and pharmaceutical products for ensuring product and consumer safety through these efficient testing methods. .
• Ongoing research and development in the field of cannabis testing methodologies and their standardization is helping offer the accurate and reliable data regarding the potency and safety of cannabis products. to cultivators, manufacturers, and consumers.
• Thus, North America’s cannabis industry is likely to continue influencing the global market, becoming a role model for other regions dealing with legalization and quality assurance issues.

Global Cannabis Testing Market Segmentation Analysis

The Cannabis Testing Market is segmented on the basis of Product and Software/Services, Types of Testing, End-User, and Geography.

Cannabis Testing Market, By Product & Software/Services

• Product
• Analytical Instruments
• Consumables
• Software/Services
• Cannabis Testing Software
• Cannabis Testing Services

Based on Product and Software/Services, the market is divided into Product and Software/Services. The product segment currently holds the largest market share. The increasing use of analytical instruments like HPLC, GC-MS, and LC-MS for performing essential tests like potency testing, terpene profiling, and contaminant analysis is projected to help the product segment retain its dominance. Similarly, consumables like calibration standards, reagents, and solvents also play a pivotal role in conducting these tests effectively. The government and drug manufacturers are investing in testing laboratories to enable the adoption of analytical instruments and consumables, creating lucrative opportunities for the growth of the cannabis testing market.

Cannabis Testing Market, By Types of Testing

• Potency Testing
• Pesticide Screening
• Heavy Metal Testing
• Genetic Testing
• Terpene Profiling
• Residual Solvent Screening
• Mycotoxin Testing
• Microbial Analysis
• Others

Based on Types of Testing, the market is segmented into Potency Testing, Pesticide Screening, Heavy Metal Testing, Genetic Testing, Terpene Profiling, Mycotoxin Testing, Microbial Analysis, Residual Solvent Screening, and Others. Potency testing is dominating in the market as it is an integral part of quality control measures implemented by cannabis producers. It allows for the identification of variations in cannabinoid content and helps maintain product quality standards. Majority of jurisdictions have strict regulations governing the permissible levels of cannabinoids, especially THC, in cannabis products. Potency testing is essential for ensuring compliance with these regulations and providing accurate labeling of products.

Cannabis Testing Market, By End-User

• Laboratories
• Research Institutes
• Drug Manufacturers
• Dispensaries
• Cultivators

Based on End-User,  the market is segmented into Laboratories, Research Institutes, Drug Manufacturers, Dispensaries, and Cultivators. Laboratories segment is dominant in the cannabis testing market. The testing laboratories play a vital role in the supply chain to ensure the cannabis products meet regulatory standards and consumer safety expectations. Also, for protecting consumer safety by identifying potential contaminants, ensuring accurate labeling of cannabinoid content, and verifying that products meet safety standards.

Cannabis Testing Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

Based on Geography, the Cannabis Testing Market is divided into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa. North America is a leading market for Cannabis Testing with an 89% revenue share. Some countries in North America, including the United States and Canada, have seen a considerable increase in the legalization of cannabis for either medical or recreational use. Thus, cannabis testing services are in high demand as a result, in order to guarantee product quality, safety, and regulatory compliance in the region.

Key Players

The “Global Cannabis Testing Market” study report will provide valuable insight with an emphasis on the global market including some of the major players such as Agilent Technologies, Inc., Shimadzu Scientific Instruments., Merck KGaA, Restek Corporation., PerkinElmer Inc., DH Tech. Dev. Pte. Ltd., WATERS., Accelerated Technology Laboratories, Inc., Steep Hill, Inc., Digipath, Inc., SC Labs., PharmLabs LLC, CannaSafe, Anandia Labs, Eirlab Research Group, PhytoVista Laboratories, Pure Analytics LLC, MM Enterprises USA, LLC., Terra Tech Corp., Aphria Inc.

Our market analysis also entails a section solely dedicated for such major players wherein our analysts provide an insight to the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share and market ranking analysis of the above-mentioned players globally.

Cannabis Testing Market Recent Developments

• In March 2023, the well-known analytical instrument maker Shimadzu Corporation made an announcement about the release of a brand-new HPLC system made especially for high-throughput cannabinoid potency testing in cannabis samples.
• In August 2023, leading global provider of bioanalytical testing, Eurofins Scientific (EUFI.PA), announced today that it has reached a deal to buy Exova’s ten-laboratory food, water, and pharmaceutical testing business in the UK and Ireland for about GBP 18 million, subject to closing adjustments. If the usual closing requirements are met, the transaction is anticipated to be finalized in July.
• In June 2022, Agilent Technologies Inc. signed MOU with Mahidol University for Science Industry Research and Development in Thailand.
• In May 2022, Danaher Corporation joined Bespoke Gene Therapy Consortium (BGTC) for rare disease research and prevention measures.
• In June 2022, MERCK KGAA and Agilent technologies signed a collaboration deal to fill up the industry gap in process analytical technology.
• In June 2022, Perkin Elmer launched two assays for the quantification of SARS CoV-2 antibodies.

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Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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