Cannabis Testing Market

Market Overview

Cannabis which is commonly known as marijuana is originated from the dried flowers, leaves, stems and seeds of the Cannabis sativa or Cannabis indica plants. It contains three main compounds includes Tetrahydrocannabinol (THC), Cannabidiol (CBD), and cannabinol (CBN). People use cannabis in various forms such as hand-rolled cigarettes (joints), water pipes (bongs), and cigars (blunts). It can also be inhaled through vaporizers that extract the active ingredients and collect the vapor, avoiding the need to smoke. Cannabis has different properties like psychoactive (mind-altering), non-intoxicating and non-euphoric. These properties help reduce inflammation and pain and treat several medical conditions like chronic pain, glaucoma and loss of appetite. Additionally, it can help prevent nausea, migraines, seizures and anxiety. Currently, there is a growing demand for cannabis testing worldwide. This testing checks for contaminants and impurities such as residual solvents, mold, diseases, pests and pesticide residue. The main reason for the market's growth is the increasing demand for cannabis testing services due to more cases of contamination. During its cultivation, the cannabis plant is exposed to various contaminants like heavy metals from the soil, fungi, molds and pesticides. These contaminants can be harmful and unsafe for human consumption which is potentially causing severe health issues and respiratory diseases. In addition, many regulatory agencies have set maximum allowable limits on residual solvents, insecticides, pesticides, heavy metals, microbes and mycotoxins in cannabis plant samples. This has led to the establishment of numerous new laboratories, especially in areas where cannabis cultivation is thriving. The market is growing due to the increasing use of cannabis for medicinal purposes which is rising legalization of both recreational and medical cannabis and the introduction of advanced technological instruments.

Cannabis Testing Market Size

Report	Details
Market Size Value	USD 1.8 Billion in 2023
Market Size Value	USD 4.0 Billion by 2030
CAGR	17.2%
Forecast Period	2024-2032
Base Year	2023
Historic Data	2020

Major vendors in the global cannabis testing market are  Merck KGaA (Germany), PerkinElmer, Inc. (US), Hamilton Company (US), Sigma Analytical Services (Canada), SC Labs (US), PharmLabs LLC (US), MCS, Inc.  (US),  ProVerde Laboratories (US), Eurofins Scientific (Luxembourg), Agilent Technologies, Inc. (US), Shimadzu Corporation (Japan), Thermo Fisher Scientific Inc. (US), Danaher Corporation (US), Waters Corporation (US), Restek Corporation (US), SGS SA (Switzerland) and Others.

Growing legalization of both medical and recreational cannabis

The growing legalization of both medical and recreational cannabis is a significant driver of the cannabis testing market. As more countries and states adopt laws permitting the use of cannabis for medical and recreational purposes, the demand for high-quality and reliable cannabis testing services has surged. This legalization trend reflects a broader societal shift towards accepting cannabis as a legitimate and beneficial product, which in turn necessitates rigorous testing to ensure consumer safety and product quality. For medical cannabis, testing is crucial to verify the purity and potency of the products to ensure that they meet prescribed medical standards and are free from contaminants that could affect patient health. Accurate testing helps in tailoring treatments to individual needs and maintaining trust in the medical benefits of cannabis. Recreational cannabis legalization similarly drives the need for testing to confirm product safety and compliance with legal limits on THC and other substances. It helps prevent issues such as contamination with harmful chemicals or inaccurate labeling of THC content, which could lead to health risks or legal disputes. Moreover, as the market expands, there is a growing emphasis on standardized testing procedures and quality assurance. This trend creates opportunities for businesses specializing in cannabis testing to develop and implement advanced technologies and methods, ensuring that products are safe, effective and compliant with evolving regulations. The ongoing legalization efforts across various regions continue to fuel the growth of the cannabis testing market, providing a foundation for its future expansion and innovation.

Market Dynamics

Drivers:

• Growing cannabis-based drugs approval
• Growing legalization of both medical and recreational cannabis
• Growing consumer demand for reliable and high-quality cannabis products

Opportunities:

• Increasing number of cannabis testing laboratories in emerging markets
• Increasing investment in research and development activities
• Advancements in cannabis testing such as next-generation sequencing and LIMS integration for enhanced analysis and efficiency

Advancements in cannabis testing such as next-generation sequencing and LIMS integration for enhanced analysis and efficiency

Advancements in cannabis testing which includes particularly next-generation sequencing (NGS) and Laboratory Information Management Systems (LIMS) integration are revolutionizing the industry by significantly enhancing analysis and efficiency. Next-Generation Sequencing (NGS) represents a breakthrough in the ability to analyze cannabis and its microbial contaminants with unprecedented detail. NGS technology allows for the comprehensive sequencing of entire genomes which helps identification and quantification of wide range of microorganisms and genetic variations within cannabis samples. This detailed analysis not only detects contaminants such as bacteria, fungi and viruses but also provides insights into the genetic makeup of the cannabis plant itself, which can aid in breeding and genetic research. By ensuring that cannabis products are free from harmful pathogens and are accurately labeled, NGS supports consumer safety and product reliability. Laboratory Information Management Systems (LIMS) play a critical role in streamlining the testing process. LIMS are sophisticated software solutions that manage and track samples, automate data entry, and facilitate efficient reporting. The integration of LIMS into cannabis testing laboratories improves data accuracy and operational efficiency by reducing manual errors, speeding up data processing, and ensuring that all regulatory requirements are met. LIMS also enable better data analysis and decision-making through advanced reporting tools and real-time data access. Together, NGS and LIMS advancements enhance the accuracy, efficiency, and reliability of cannabis testing. They support the growing demand for high-quality, safe and compliant cannabis products which is fostering trust and ensuring adherence to regulatory standards.

The market for cannabis testing market is dominated by North America.

By analysing the Cannabis testing market globally across various country like North America, Europe, Asia-Pacific, and LAMEA in which North America holds the largest market share during the forecast period. This growth is supported by the increase in testing laboratories due to strict government regulations for marijuana cultivators and the large number of cultivators in the region.

The Asia Pacific region is expected to have the fastest growth rate over the forecast period. Several countries in the region have already legalized medical cannabis and more are expected to do so soon. This is expected to boost the demand for cannabis testing services, as both governments and businesses will need to ensure the safety and effectiveness of medical cannabis. Additionally, the number of cannabis testing laboratories in the region is increasing rapidly due to rising demand and greater access to funding and expertise.

The cannabis cultivator/growers are anticipated to hold the largest market share during the forecast period

The global market is categorized by end-user into open circuit, close circuit, hybrid circuit in which open circuit segment held the largest market share. The growth is driven by as they are entering into agreements with testing laboratories and research centers because many governments have set limits on THC content in cannabis products. Additionally, growers must sell different strains of plants, priced based on their CBD and THC content to manufacturers and wholesalers. These factors are driving the growth of this market segment.

The cannabis drug manufacturers segment is expected to have the fastest growth rate over the forecast period. This growth is driven by the increasing acceptance of marijuana as a medicine and the rise in cannabis-based clinical trials conducted by major pharmaceutical companies such as Sanofi, Solvay Pharmaceuticals, and Pfizer. For example, in June 2018, Sanofi had registered 38 clinical trials, Solvay Pharmaceuticals had 7 and Pfizer had 4 involving cannabis-based treatments.

Major segmentations are distributed as follows:

• By Product Type:
  • Consumable
  • Instruments
  • Software
• By Test Type:
  • Heavy Metal Testing
  • Microbial Analysis
  • Residual Screening
  • Potency Testing
  • Others
• By End-User:
  • Cannabis Cultivators/Growers
  • Cannabis Drug Manufacturers
  • Others
• By Region
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Colombia
    • Chile
    • Peru
    • Rest of Latin America
  • Europe
    • Germany
    • France
    • Italy
    • Spain
    • U.K.
    • BENELUX
    • CIS & Russia
    • Nordics
    • Austria
    • Poland
    • Rest of Europe
  • Asia Pacific

• • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Indonesia
  • Malaysia
  • Vietnam
  • Australia & New Zealand
  • Rest of Asia Pacific

• • Middle East & Africa

• • Saudi Arabia
  • UAE
  • South Africa
  • Nigeria
  • Egypt
  • Israel
  • Turkey
  • Rest of MEA

 Recent Developments

• March 2024, Triverity Analytical, a cannabis testing facility based in South Dakota had announced plans to open a new cannabis testing lab in the same state 
• September 2023, Shimadzu Corporation introduced the Brevis GC-2050 gas chromatograph, which is used for a range of applications which is including testing cannabis.
• April 2023, SC Labs, a top cannabis testing company has acquired C4 Laboratories, one of the original cannabis labs in Arizona. This acquisition allows SC Labs to be licensed and accredited in five states including California, Colorado, Michigan, Oregon, and Arizona.

   Answers to Following Key Questions:

• What will be the cannabis testing market ’s trends & growth rate? What analysis has been done of the prices, sales, and volume of the top producers in the cannabis testing market?
• What are the main forces behind worldwide cannabis testing market? Which companies dominate cannabis testing market?
• Which companies dominate cannabis testing market? Which business possibilities, dangers, and tactics did they embrace in the market?
• What are the global insight engines industry's suppliers' opportunities and dangers in cannabis testing market?
• What is the insight engines industry's regional sales, income, and pricing analysis? In the cannabis testing market, who are the distributors, traders, and resellers?
• What are the main geographic areas for various trades that are anticipated to have astounding expansion over the cannabis testing market?
• What are the main geographical areas for various industries that are anticipated to observe astounding expansion for cannabis testing market?
• What are the dominant revenue-generating regions for cannabis testing market, as well as regional growth trends?
• By the end of the forecast period, what will the market size and growth rate be?
• What are the main cannabis testing market trends that are influencing the market's expansion?
• Which key product categories dominate cannabis testing market? What is cannabis testing market ’s main applications?
• In the coming years, which cannabis testing market technology will dominate the market?