Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Cannabis Testing Service Market – Insights
The development of therapies derived from cannabis and its components is increasing in the recent past. Robust research and development activities are conducted for the treatment of various medical conditions including cancer, multiple sclerosis, post-traumatic stress disorder, and anxiety from cannabis. Furthermore, the U.S. Food and Drug Administration (FDA) offers an active program, which assists drug developers in investigating marijuana (or its components) through controlled clinical trials, in order to demonstrate the potential for safe and effective uses of marijuana.
The global cannabis testing service market size was valued at US$ 230.3 million in 2018, and is expected to witness a CAGR of 8.5% over the forecast period (2018 – 2026).
Global Cannabis Testing Service Market Share (%) Analysis, By Test Type, 2018
Source: Coherent Market Insights Analysis (2019)
Increasing Research & Development Activities in Cannabis and Establishment of New Cannabis Testing Labs is expected to Drive Growth of the Cannabis Testing Service Market
Increasing research and development activities in cannabis to improve the productivity and quality of cannabis product is major driving force for the global cannabis testing service market growth. For instance, in November 2018, a team of researchers at the University of Guelph investigated technologies that can help in growing better quality marijuana. The team focused on controlled environment production of medical marijuana, with proprietary plant-growing technology, using chambers to monitor and regulate all variables throughout the growth.
Moreover, the research also involved sensors attached to the plants to analyze the plants’ response to different types of management strategies. This approach allowed the team to produce organically grown, pesticide-free, high-yielding strains of cannabis, in addition to consistent generation of high-quality products in every batch.
Key players in the market are focused on establishment of novel state-of-art cannabis testing laboratories in key regions to provide a wide range of services in cannabis testing, which is expected to drive growth of the cannabis testing service market. For instance, in April 2018, Gala Pharmaceutical, Inc. announced its plans to build its first state-of-the-art testing laboratory that will meet the new ISO requirements set by the City of Long Beach and the State of California, U.S. in accordance with the Medical Marijuana Regulation and Safety Act.
In December 2018, Gala Pharmaceutical California Inc., a subsidiary of Gala Pharmaceutical, Inc. received a Temporary License from the State of California to construct its flagship cannabis testing facility in Long Beach, California, U.S.
Global Cannabis Testing Service Market - Restraints
Lack of standard testing process is expected to hinder the growth of the market. There is certification challenges for infused products manufacturers, as there are no guidelines that standardize the equipment or methods testing labs use. As a result, one sample can produce different results based on the laboratory where it’s tested.
Global Cannabis Testing Service Market - Regional Insights
On the basis of region, the global cannabis testing service market is segmented into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa. North America is expected to hold a dominant position in the global cannabis testing service market during the forecast period, owing to increasing legalization of marijuana use in the U.S. by Federal Law. For instance, according to the Drug Policy 2018 report, on November 6, 2012, Colorado and Washington become the first two jurisdictions in the world to legalize marijuana for adult use. Moreover, in January 2018, Vermont became the first state to legalize marijuana through a state legislature. According to Governing 2019 report, 11 states have legalized marijuana for recreational use and 22 states have legalized for medical use in the U.S.
Europe is expected to foresee a rapid growth in the cannabis testing service market. The market in Europe is expected to gain momentum during the forecast period, owing to increasing number of players entering the U.K. cannabis testing service market by acquiring U.K-based cannabis testing laboratories. For instance, in July 2018, Sativa Investments PLC acquired PhytoVista Laboratories Ltd., a U.K-based lab that tests cannabis oils and hemp products.
Global Cannabis Testing Service Market Value (US$ Mn) & Y-o-Y Growth (%), 2016-2026
Source: Coherent Market Insights Analysis (2019)
Global Cannabis Testing Service Market - Competitive Landscape
Key players operating in the global cannabis testing service market include, SC Laboratory, Eurofins Scientific, EVIO Labs, ProVerde Laboratories, Inc., Praxis laboratory Cascadia Labs, Encore labs, SGS Canada Inc., Pharm Labs LLC, and Agricore Laboratories.