Cannabis Testing Market Size, Share, Growth and Demand 2028

Cannabis Testing Industry Prospective: 

The global cannabis testing market was valued at around USD 1.35 Billion in 2021 and is estimated to grow to about USD 10.86 Billion by 2028, with a compound annual growth rate (CAGR) of approximately 19.8% over the forecast period.

The report analyzes key drivers and opportunities that support the market growth along with the cannabis testing market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the cannabis testing market.

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Cannabis Testing Market: Overview

Cannabis testing is the process of analyzing a single sample of cannabis to evaluate CBD, THC, and terpene levels, as well as pollutants and impurities such as mold spores, residual solvents, infection, and pesticide residue. Each state and municipality has the authority to set their own rules and regulations for what must be tested and printed on cannabis labeling.

Individual producers may also choose to adhere to more severe guidelines, even having their samples tested for CBG and CBC levels. Only qualified chemists and lab workers are permitted to conduct this testing. Cannabis production and sales were formerly prohibited worldwide for numerous years.

Cannabis is a type of psychoactive drug that has recreational and medicinal uses. Cannabis mainly consists of THC (tetrahydrocannabinol) that causes changes in perception, increases appetite and sensation of euphoria. There are different types of cannabis, such as topical cannabis, inhaling cannabis, solid edible cannabis, and liquid edible cannabis, which are tested during the cannabis testing procedure.

COVID-19 Impact:

The unforeseen COVID-19 pandemic has had both beneficial and bad consequences for the life sciences and pharma industries. Low demand for consumables, instruments, and reagents, along with supply chain disruptions and trade limitations, have harmed certain market sectors more than others.

According to a report issued by The Science Advisory Board, 72.0 percent of all labs throughout the world were shut down or operating at a reduced capacity. Instead of doing routine operations, the labs that were open fully or partially focused on COVID-19 testing.

Many participants in the industry have seen their operations and financial performance suffer as a result of the epidemic and slowed worldwide research activity. The number of cannabis tests done in laboratories has decreased as a result of the closure of academic and research institutes as well as testing facilities.

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Cannabis Testing Market: Growth Drivers

The market is fostering medical cannabis legalization and increasing cannabis testing labs

Medical cannabis has shown to be helpful in a number of medical uses, including lowering intraocular pressure in glaucoma patients, managing muscular spasms in multiple sclerosis patients, boosting appetite in AIDS patients, and minimizing chemotherapy-induced nausea. Medical cannabis is legal in a number of countries due to its health benefits. Italy, Brazil, Israel, the Netherlands, Germany, the United Kingdom, Portugal, Spain, North Korea, Canada, and Australia have all approved it in the last few years.

Furthermore, 25 states in the United States legalized medical cannabis, with four states—Alaska, Oregon, Washington, and Colorado legalizing cannabis for use for both recreational and medical purposes. Thus, with the rising legalization of cannabis, an increase in adoption of its testing is been witnessed which in turn is fostering the growth of the global cannabis testing market. In addition to this, the increasing number of cultivators and the growing necessity for the safety & efficacy of cannabis products are also some of the key factors that are fueling the market growth.

The increase in the use of medical cannabis for various applications, such as reduction of nausea caused after chemotherapy, stimulation of appetite in patients suffering from AIDS, and controlling of muscle spasms, is fueling the demand for cannabis globally. This increase in demand has led to the legalization of cannabis by governments in various countries. For instance, Australia legalized medical cannabis in 2016, which is fuelling the growth of the global cannabis testing market. The rise in adoption of the cannabis software namely LIMS in the cannabis testing labs and the rise in the number of awareness programs such as workshops and conferences in various countries is also driving the global market for cannabis testing. However, the high cost of instruments and the lack of skilled professionals are hampering the development of the global cannabis testing market.

Cannabis Testing Market: Restraints

The cannabis testing market may be hampered by a lack of universal testing standards.

For delivering a precise and accurate dose of cannabis for medical purposes, certain standards of quality control and regulation are essential. There is, however, a lack of consistency in quality standards among countries. For example, different states in the United States have varied rules and variances governing medical and adult-use cannabis. Various states have different possession limits. The wide range of legislation governing the use of medical cannabis presents a considerable problem for testing laboratories when assessing the quality of these products. Such disparities between states in the United States and between European countries may stymie business growth.

Cannabis Testing Market: Opportunities

Growing necessity of heavy metal testing for cannabis is likely to drive the market during the forecast period.

Besides pesticides, microbiological organisms, and residual solvents, heavy metals are one of the most common pollutants detected in cannabis and its derivatives. Furthermore, heavy metals are highly poisonous and can cause poisoning and other issues when exposed. As a result, heavy metal testing for cannabis and its derivatives is becoming extremely prevalent. Several government agencies have made heavy metal testing for cannabis products mandatory. All such factors coupled with the use of advanced instruments like HPLC techniques are likely to generate ample opportunities for the growth of the global cannabis testing market during the forecast period.

Cannabis Testing Market: Challenges.

High cost associated with the set-up of cannabis testing laboratories acts as a major challenge for the market

One of the most critical challenges in this market is the high startup expenses for cannabis testing laboratories. These labs must invest a large amount of money in order to purchase and maintain expensive, modern analytical equipment. Accreditations & certifications such as ISO certification processes, software requirements, standardization & upgrades of equipment, and the need for qualified experts all add to the operating costs. Also, because of the ambiguity in the cannabis testing market, many banks refuse to fund or provide any other type of support to these laboratories. Furthermore, several governments are working on a plan to impose taxes on cannabis testing labs. Thus, the high cost associated with the set-up of cannabis testing laboratories poses a major challenge for the market growth.

Cannabis Testing Market: Segmentation

The global cannabis testing market is divided based on technology, test type, and region.

Based on the technology, the global market is split into spectroscopy and chromatography.

By test type, the marke t is categorized into mycotoxin testing, terpene testing, heavy metal testing, residual solvent screening, pesticide screening, and potency testing.

Global Cannabis Testing Market Report Scope:

Recent Developments

• In February 2022, ACS Laboratory, the biggest cannabis and hemp cannabis testing laboratory in the eastern United States, introduced an HHC Potency Test and related Metals Testing Bundle targeted at HHC (hexahydrocannabinol) products to strengthen consumer trust and increase product quality. ACS Laboratory currently tests for 23 cannabinoids, more than any other lab in the United States.
• In July 2021, PureVita Labs opened new hemp and cannabis analytical testing lab to open in Rhode Island. The lab reported that the state health department has granted it permission to sample & test cannabis for contaminants and potency.

Cannabis Testing Market: Regional Landscape

North America to dominate the market during the forecast period

Geographically, North America is estimated to dominate the global cannabis testing market during the forecast period. The existence of a significant number of cultivators in the region, as well as an increase in the number of testing laboratories in the region due to strict government restrictions for cannabis producers, are key drivers promoting market growth in this region. Europe, on the other hand, is anticipated to grow at the fastest rate during the forecast period. The rising legalization of cannabis in several European countries, as well as the expanding use of the plant in drug development & research, are expected to fuel the market for cannabis testing. In addition, the cannabis testing market in the region is tightly regulated, with most countries barring goods having more than 0.3 percent THC, thereby driving the market growth in this region.

Cannabis Testing Market: Competitive Landscape

Some of the dominant players that are functioning in the global cannabis testing market are:

• Thermo Fisher Scientific
• MERCK KGAA
• Shimadzu Corporation
• Agilent Technologies,Inc.
• PharmLabs LLC
• SC Laboratories, Inc.
• Steep Hill Inc.
• DigiPath, Inc.
• GreenLeaf Lab
• CW ANALYTICAL among others.

Global cannabis testing market is segmented as follows:

By Technology

• Chromatography
• Spectroscopy

By Test Type

• Potency Testing
• Pesticide Screening
• Residual Solvent Screening
• Heavy Metal Testing
• Terpene Testing
• Mycotoxin Testing

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa