Global cannabis testing market is estimated to witness high growth, due to increasing legalization and rising quality control standards
Global Cannabis Testing Market is estimated to be valued at USD 2.45 Bn in 2024, exhibiting a CAGR of 16.7% over the forecast period (2024-2031). Standardization of safety protocols and quality control measures have become increasingly important for the industry.
Market Dynamics:
Increasing legalization of cannabis across various regions can drive the cannabis testing market growth. Several countries and states have legalized medical and recreational cannabis in the recent years. This has boosted demand for testing to ensure product safety and potency. Rising quality control standards also drives the market growth. Regulatory bodies have implemented stringent guidelines around cannabis testing to monitor THC and CBD content, check for contaminants, and ensure appropriate labeling. Requirement of multiple rounds of testing during cultivation and production offer significant opportunities for testing service providers. Adoption of advanced analytical techniques like chromatography and spectroscopy has further enabled accurate and reliable testing. Market fragmentation and lack of uniform regulations can hamper the market growth.
Increasing Legalization of Cannabis for Medical and Recreational Use
Global cannabis testing market growth is driven by increasing legalization of cannabis for both medical and recreational use around the world. Many countries and states have legalized medical cannabis to treat various medical conditions such as chronic pain, cancer, epilepsy, and mental health disorders. This has boosted demand for cannabis testing to ensure product safety and potency. Moreover, complete legalization of cannabis for adult-use recreation in some countries and states can drive the market growth.
Strict Regulations Regarding Cannabis Testing and Product Safety
Governments across jurisdictions where cannabis is legal have implemented strict regulations regarding product testing and safety. This is another key market driver. Regulations mandate that cannabis products must pass through various tests to check for contaminants, heavy metals, pesticides, microbials, THC/CBD levels, and other parameters before they can be made available for medical or non-medical sale. This is done to ensure only high-quality and safe products reach consumers. The stringent regulatory framework has boosted demand for cannabis testing laboratories and services.
High Cost of Laboratory Equipment and Cannabis Testing Services
Global cannabis testing market growth can be hampered by high cost associated with laboratory equipment, reagents, consumables, trained personnel, and other overheads. Equipment required for analytical testing such as chromatography and mass spectrometry instruments are highly sophisticated and expensive. This makes cannabis testing services expensive for cultivators and product manufacturers. The high market entry cost poses a challenge, especially for new entrants and players in cost-sensitive markets.
Difficulty in Developing Standardized Testing Protocols
Developing universally accepted standardized protocols for cannabis testing is difficult due to variability in cannabis composition depending on strain type and other factors. While some jurisdictions have established guidelines, not all parameters and thresholds are agreed upon internationally. These inconsistencies make it challenging for laboratories to develop standardized practices. Moreover, limited research also poses difficulties in determining the appropriate methods for various tests.
Increasing Demand for Testing of New Cannabis Product Formats
There has been growing demand for testing services related to new cannabis product formats such as edibles, beverages, concentrates, topicals, and others. While flower testing is still dominant, emerging product segments open up new testing opportunities. This allows scope for analytical testing service providers to broaden their service portfolio through customized offerings for different matrices.
Opportunities in International Markets with Evolving Regulations
Many international markets that have legalized or are in the process of legalizing cannabis offer white space opportunities for cannabis testing companies. As regulations in these markets evolve and mature, testing needs are expected to increase when scaling up production and launching commercial medical or adult-use programs. This allows Canadian and U.S. based established testing players to expand globally through partnerships and acquisitions to tap into such nascent yet high-potential international markets long-term.
Link - https://www.coherentmarketinsights.com/market-insight/cannabis-testing-market-170
Key Development
- In January 2024, Smithers relocated its Cannabis Testing Services division to a new, state-of-the-art laboratory in Darien, Illinois, U.S. This move, situated outside of Chicago, reflects Smithers' commitment to the cannabis industry by improving client proximity, optimizing sampling routes, and investing in advanced technology.
- In December 2022, SC Labs expanded into Southern California with a new 12,000+ square foot lab in Van Nuys, Los Angeles. The facility will provide both R&D and compliance testing for cannabis, including potency, pesticides, heavy metals, residual solvents, microbials, water activity, and more. This expansion aims to enhance testing capacity and resources for customers south of Santa Barbara.
- In August 2022, ACS Laboratory, a U.S.-based cannabis testing company, introduced its own national hemp compliance testing panel. This panel is designed to test hemp samples for a comprehensive range of substances, including 18 cannabinoids, 105 pesticides, 24 heavy metals, 55 potential residual solvents, 17 different microorganisms, and all required mycotoxins, with detection capabilities down to parts per billion. It also assesses moisture content, water activity, and terpenes.
- In July 2022, Green Scientific Labs launched new technology for cannabis testing. This innovation includes custom-designed software specifically developed for the cannabis industry.
- In March 2021, PerkinElmer introduced the industry's first Certified Reference Material (CRM) reagent and consumable kit, designed to streamline cannabis pesticide testing workflows. These products facilitate more efficient analysis of cannabis products using testing instruments.
Key Players: SC Labs, Steep Hill, Kaycha Labs, Eurofins Scientific, Agilent Technologies, Medicinal Genomics, CannaSafe, Gobi Labs, PureSpectrum, Green Leaf Lab, Analytical 360, ProVerde Laboratories, BioCannabis, LabCanna, Cannalysis, CertiCann, Digipath, ACT Laboratories
