Global Cannabis Testing Market Research Report - Segmented by Testing Type (Heavy Metal Testing, Microbial Analysis, Potency Testing, Residual Screening, Mycotoxin Testing, Terpene Profiling, and Others); End-Users (Laboratories, Research Institutes, Cultivators, and Others); Samples (Flowers, Extracts, Edibles and Others); Products (Instruments, Consumables and Softwares); and Region - Size, Share, Growth Analysis | Forecast (2024 2030)

Market Size and Overview:

The Global Cannabis Testing Market is anticipated to have a valuation of USD 1881.19 Million in 2023, and it is forecasted to achieve a value of USD 4536.54 Million by 2030, demonstrating a growth rate of 13.4% during the forecast period from 2024 to 2030.

The legalization of cannabis in various countries, including Canada, Mexico, South Africa, the District of Columbia, Thailand, among others, has led to an increased demand for testing services. The cannabis plant contains around 540 chemical compounds, with cannabinoids being the primary compound. Among the cannabinoids, cannabidiol (CBD) and tetrahydrocannabinol (THC) are the most extensively studied. A 2022 review in Inflammopharmacology highlighted the efficacy of medications combining THC and CBD in treating chronic pain, particularly neuropathic, nociceptive, and neoplastic pain. Additionally, CBD has shown promise in reducing blood pressure and addressing various health issues such as inflammation, preventing relapse in addiction, and treating anxiety disorders.

Cannabis testing plays a crucial role for several reasons, including instilling confidence among consumers and healthcare practitioners, managing risks in a rapidly expanding sector, and prioritizing the production of high-quality products. Tests are conducted to assess potency, pesticide presence, microbial content, and levels of heavy metals. As regulatory frameworks evolve, accumulating more testing data and evaluating testing programs, the industry must draw inspiration from established and regulated sectors like pharmaceuticals, food, and environmental sciences. Adopting a collaborative approach to cannabis testing becomes imperative to ensure sustained growth, credibility, and widespread acceptance within the industry.

Global Cannabis Testing Market Drivers:

The legalization of medical cannabis has been associated with increased test rates.

The active compounds in medical marijuana, akin to endogenously produced body chemicals influencing hunger, memory, mobility, and pain, have led to its increased use. Notably, these compounds are effective in alleviating conditions such as migraine, nausea, and vomiting. The legalization of cannabis consumption in countries like Canada, Georgia, Malta, Mexico, South Africa, Thailand, Uruguay, as well as in 23 states, 3 territories, and the District of Columbia in the United States, along with the Australian Capital Territory in Australia, has stimulated demand for diverse analytical testing approaches. Analysts foresee industry growth attributed to ongoing legalization efforts, evolving public attitudes, and the heightened adoption of cannabis testing methodologies.

Initiatives aimed at enhancing research and development (R&D) have attracted the scientific community, bolstering the cannabis testing market.

The Department of Cannabis Control (DCC) is actively soliciting research proposals to enhance public comprehension of cannabis and the consequences of its legalization. This initiative seeks to advance intellectual understanding, explore the impact of government policies on individuals and communities, and aid policymakers in making evidence-based decisions. The Department envisions that studies funded through this program will expand the scientific knowledge base related to cannabis, benefiting not only California but also national and global regulatory bodies. The proposed research will prioritize topics such as the health implications of the cannabis industry, the efficacy of cannabinoids, issues related to monopolies and unjust competition, and the medicinal aspects of cannabis. This endeavor is expected to create employment opportunities and foster the engagement of scientists and researchers, contributing to a deeper understanding of the cannabis sector.

The burgeoning adoption of Laboratory Information Management Systems (LIMS) in the Cannabis Testing Industry is a significant catalyst for market growth.

LIMS, a software-based system with advanced functionalities, facilitates the seamless operation of modern laboratories. Key attributes like workflow and data tracking support, flexible design, and data interchange interfaces make LIMS indispensable in regulated environments. Evolving from simple sample monitoring, LIMS has transformed into an enterprise resource planning solution that governs various aspects of laboratory informatics. Its capacity to assess chemicals, microbes, pesticides, metals, among other components, underscores its pivotal role in advancing the Cannabis Testing Market. By delivering enhanced efficiency and ensuring more precise results, LIMS has become an instrumental factor propelling market expansion.

Challenges in the Global Cannabis Testing Market:

The global cannabis testing market faces impediments due to substantial start-up costs, potentially hindering revenue generation. Ongoing expenses such as equipment upgrades, cleaning, maintenance, software updates, accreditation, and certifications are essential for ensuring accurate results, particularly with advanced techniques like chromatography and spectroscopy. Continuous investments are imperative, presenting a considerable challenge for start-ups during their initial years. Additionally, the requirement for skilled professionals possessing both theoretical and practical expertise in handling and conducting tests adds another layer of complexity, contributing to potential drain on the market.

Opportunities in the Global Cannabis Testing Market:

Significant opportunities for exponential growth are anticipated in the cannabis testing market, particularly in developing countries. The Asia Pacific region, in particular, is fostering increased life science research programs, attracting substantial investments from investors and leading companies. Schemes and developments in the research and development (R&D) sector have resulted in operational improvements and technological advancements in cannabis testing. Moreover, the positive trend of legalization in numerous countries is encouraging a deeper exploration of the medical aspects and benefits on the human body, providing additional avenues for market expansion.

COVID-19 Impact on the Global Cannabis Testing Market:

The global cannabis testing market has experienced economic challenges due to the impact of COVID-19. Movement restrictions, lockdowns, and social distancing measures significantly reduced drug production, leading to a decrease in demand. Disruptions in transportation due to these constraints further affected the supply chain. Companies reported substantial financial losses related to cannabis testing, with the closure of academic and research institutions contributing to this downturn. Additionally, decreased sales of cannabis products were observed as individuals became more cognizant of potential health adversities during the chaotic pandemic period.

Recent Developments in the Global Cannabis Testing Market:

In May 2022, RS Group Lifestar launched a dietary supplement named Krill Oil Plus CBD after undergoing evaluation from the FDA. This recent development showcases ongoing innovation and expansion within the market, as companies continue to introduce new products to meet evolving consumer demands and regulatory standards.

Global Cannabis Testing Market Segmentation:

By Testing Type:

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

Potency testing claims the highest market share among testing types, driven by increased awareness of CBD for medical purposes. This segment is crucial for determining the impact of a specific drug dosage on the biological system. The fastest-growing segment is terpene profiling, which plays a critical role in identifying and assessing the medicinal effectiveness of cannabis cultivars or strains.

Global Cannabis Testing Market Segmentation: By End-Users

• Laboratories
• Research Institutes
• Cultivators
• Others

Cultivators hold the largest share in the global cannabis testing market among end-users, emphasizing the importance of testing for consumer safety, compliance with guidelines and regulations, and adherence to export rules. Laboratories are projected to be the fastest-growing segment, driven by extensive research activities related to human consumption, medical properties, and overall benefits.

Global Cannabis Testing Market Segmentation: By Sample

• Flowers
• Extracts
• Edibles
• Others

Cannabis flowers dominate the market share, processed to alleviate anxiety, inflammation, and pain. Edibles represent the fastest-growing segment, attributed to their various applications, including appetite recovery, pain relief, and weight management following cancer-related issues.

Global Cannabis Testing Market Segmentation: By Products

• Instruments
  • Chromatography
    • Liquid Chromatography
    • Gas Chromatography
    • Others
  • Spectroscopy
    • Mass Spectrometry
    • Atomic Spectroscopy
    • Others
• Consumables
• Software

Instruments have the highest market share, driven by legalization for medical benefits and funding programs supporting laboratory settings. Consumables represent the fastest-growing segment due to increased usage.

Global Cannabis Testing Market Segmentation: By Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

North America dominates the global cannabis testing market, driven by technological advancements, software availability, legalization in multiple countries, and rising cases of chronological disorders, epilepsy, and anxiety. The United States and Canada are the fastest-growing regions in North America. Asia Pacific emerges as the fastest-growing region, with increased investments in pharmaceutical companies, research programs, and testing centers. Technological advancements and China's significant production of hemp with a low THC percentage contribute to the region's crucial role in testing.

Global Cannabis Testing Market Key Players:

• Agilent Technologies, Inc.
• Shimadzu Corporation
• MERCK KGAA
• Thermo Fisher Scientific
• DigiPath, Inc.
• Steep Hill Inc.
• SC Laboratories, Inc.
• PharmLabs LLC
• Waters Corporation
• PerkinElmer Inc.