The dried leaves, flowers, stems, and seeds of the cannabis sativa or cannabis indica plant are referred as cannabis. Tetrahydrocannabinol (THC) as well as other mind-altering chemicals which are psychoactive substances such as cannabidiol are found in the plants such as cannabis sativa and cannabis indica. Cannabis is considered amongst the most widely used addictive substance after cigarettes and alcohol. However, cannabis has legal application in medications such as cannabinoids oils. Cannabis testing is the examination of a sample of cannabis to identify cannabinoids (CBD), tetrahydrocannabinol (THC), and terpene levels, as well as impurities and pollutants such as pesticide residue, residual solvents, disease, and pests. Different states in various regions can establish its own rules and regulations for what must be tested and printed on cannabis product labeling.
The global cannabis testing services market is estimated to be valued at US$ 1,658.9 million in 2022 and is expected to exhibit a CAGR of 13.4% during the forecast period (2022-2030).
Figure 1. Global Cannabis Testing Services Market (%), by Test Type, 2022
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Increasing approvals for cannabis-based drugs is estimated to drive the global cannabis testing services market growth during the forecast period
Rising cannabis-based drugs approvals are projected to drive the market growth during the forecast period. For instance, in August 2020, GW Pharmaceuticals plc., the world leader company in science and development, along with its U.S. subsidiary, Greenwich Biosciences, Inc., declared that the U.S. Food and Drug Administration (FDA) had approved EPIDIOLEX (cannabidiol) oral solution to treat seizures associated with tuberous sclerosis complex (TSC) in patients one year of age and older.
Cannabis Testing Services Market Report Coverage
Report Coverage | Details | ||
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Base Year: | 2021 | Market Size in 2022: | US$ 1,658.9 Mn |
Historical Data for: | 2017 to 2020 | Forecast Period: | 2022 to 2030 |
Forecast Period 2022 to 2030 CAGR: | 13.4% | 2030 Value Projection: | US$ 4,527.6 Mn |
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Segments covered: |
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Companies covered: |
Thermo Fisher Scientific Inc., Merck KGaA, Shimadzu Corporation, PerkinElmer, Inc., Steep Hill Labs, Inc., CB Scientific Inc., Alpha-CAT, Orange Photonics, Inc., Gobi Labs, MyDx, Inc., SC Laboratories Inc., Restek Corporation, Waters Corporation, PharmLabs LLC, Eurofins Scientific, EVIO Labs, ProVerde Laboratories, Inc., Praxis Laboratory, Atlantic Test Labs, Inc., American Clinical Solutions, LLC., MCR Labs, Cannalysis, Aurum Laboratory, LLC, The Niva Labs, Encore Labs, SGS Canada Inc., Agricore Laboratories, and California Cannabis Testing Labs |
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Growth Drivers: |
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Restraints & Challenges: |
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Figure 2.Global Cannabis Testing Services Market (%), by Region, 2022
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Key market players focusing on new product launches are expected to drive the global cannabis testing services market growth over the forecast period.
The rising focus of major market players for new product launches is expected to drive the global cannabis testing services market growth over the forecast period. For instance, in March 2021, in Germany, Stade Arzneimittel, a pharmaceutical company announced the introduction of its medicinal cannabis portfolio under the CannabiStada brand which includes medical cannabis. The organization had released both flowers and entire extracts of cannabis, particularly for chronic pain patients who have failed to respond to conventional medicines such as opioids. Stada Arz is one of the first companies in German market to launch medicinal cannabis with the launch of cannabistada.
Global Cannabis Testing Market– Impact of Coronavirus (COVID-19) Pandemic
Since the COVID-19 virus outbreak in December 2019, the disease has spread to over 100 countries across the globe and the World Health Organization had declared it a public health emergency on January 30, 2020.
COVID-19 can affect the economy in three main ways: by directly affecting production and demand of drugs, by creating disruptions in distribution channels, and through its financial impact on firms and financial markets. Due to nationwide lockdowns, several countries, such as China, India, Saudi Arabia, U.A.E., Egypt, and others, are facing problems with regards to the transportation of drugs from one place to another.
Many businesses and companies in the cannabis testing services market have seen their operations and financial performance suffer as a result of the COVID–19 epidemic which resulted in the slowing of global research activity. The negative impact is mostly due to the closure of academic and research institutes, as well as testing laboratories. As a result, the number of cannabis tests done in laboratories has decreased.
Furthermore, various market players such as Merck KGaA, Shimadzu Corporation and PerkinElmer, Inc. in the global cannabis testing services market, which provide products and software to the cannabis testing industry, observe a drop in sales of instruments and consumables. As a result of lab closures, a decrease in the number of cannabis tests executed as well as certain limitations on the import and export of cannabis testing products. These factors contributed to a decrease in the sales of consumables and instruments used in the cannabis testing industry, stifling market growth.
Global Cannabis Testing Market: Key Developments
In August 2021, PSI Labs, Michigan’s Premier Cannabis Testing Lab, Michigan-based ISO 17025 accredited Safety Compliance Facility that provides essential cannabis testing services expanded into Southern California by acquisition with pH Solutions, LLC. pH Solutions, LLC is one of the longest operating laboratories in the State of California, U.S.
Global Cannabis Testing Market: Restraint
Lack of standardized testing procedures is a major factor which is hindering the global cannabis testing services market growth during the forecast period. The rising demand for safe cannabis products has resulted the need of cannabis quality control testing facilities. However, several products fail to meet the standard criteria. According to California’s Bureau of Cannabis Control (BCC), in September 2018, approximately 32.9 percent of foods, tinctures, and lotion samples, as well as 20.4 percent of inhalable oils and waxes samples failed laboratory examination. Furthermore, there are certification problems for makers of infused goods because there are different rules and regulations stating the standardization method of the equipment. As a result, depending on the laboratory where a sample is examined, it might give a variety of outcomes which is projected to hamper the market growth.
Key Players
Major players operating in the global cannabis testing services market include Thermo Fisher Scientific Inc., Merck KGaA, Shimadzu Corporation, PerkinElmer, Inc., Steep Hill Labs, Inc., CB Scientific Inc., Alpha-CAT, Orange Photonics, Inc., Gobi Labs, MyDx, Inc., SC Laboratories Inc., Restek Corporation, Waters Corporation, PharmLabs LLC, Eurofins Scientific, EVIO Labs, ProVerde Laboratories, Inc., Praxis Laboratory, Atlantic Test Labs, Inc., American Clinical Solutions, LLC., MCR Labs, Cannalysis, Aurum Laboratory, LLC, The Niva Labs, Encore Labs, SGS Canada Inc., Agricore Laboratories, and California Cannabis Testing Labs.
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