Cannabis Testing Market

Global Cannabis Testing Market Size (2024 to 2029)

During the forecast period, the global cannabis testing market is forecasted to hike at a CAGR of 12.42%. This market was worth USD 1739.4 million in 2024 and is estimated to grow by USD 3107.3 million by 2029. In the last few years, the cannabis testing market has evolved from naive exuberance to a firm and credible stance that seeks legitimacy in numerous ways. However, government support and companies play an essential role in this growth, and a lack of professionals has drawn the market. Also, seriously impacted by the COVID-19 pandemic, the development of the cannabis testing market is projected to rise faster over the next two years. In addition, the increased use of cannabinoid testing in medical drugs is expected to fuel consumer demand in the coming years.

Cannabis Testing can be defined as the various drug testing methods for detecting the use of cannabis in an individual in the fields of sport, medicine, and law. There are many ways cannabis use can be seen; some are urine testing, hair testing, blood testing, and saliva testing. However, unlike alcohol detection using breath analyzers, detecting cannabis use by any test takes considerable time. Some tests, like the Duquenois-Levine test, can be used for quick detection, but they are unreliable since they give false-positive results for many substances other than cannabinoids.

MARKET DRIVERS

The growing legalization of cannabis and increasing support from the governments of various countries for cannabis are propelling the global cannabis testing market growth.

The increase in the medicinal use of cannabis would stimulate the medical cannabis market, having a favorable effect on the development of the cannabis testing market. Growing drug usage for medicinal reasons has contributed to the legalization of cannabis in different countries worldwide. Legal cannabis is beneficial in numerous medical uses, such as decreasing chemotherapy-related nausea, stimulating appetite in AIDS patients, managing muscle spasms in multiple sclerosis patients, and reducing intraocular pressure in patients with glaucoma. Owing to its medicinal effects, policymakers have legalized the use of medical cannabis in different countries.

The growing support from the governments of several countries to conduct cannabis testing further promotes the cannabis testing market growth.

The trend of appropriation of the cannabis test measure is expanding. A few government departments are conducting laboratory studies on cannabis products needed to support the growth of the cannabis industry. Regulatory bodies have started restricting residual solvents, bug sprays, contaminants, heavy metals, microorganisms, and mycotoxins for plant testing. It also led to numerous new laboratories, mainly where growth is high.

Rising awareness and adoption of LIMS in labs testing cannabis is anticipated to boost the cannabis testing market.

Among various testing methods, cannabis usage by taking urine samples can be detected up to 2-5 days after exposure in infrequent users and up to 15 days in heavy users. Through saliva testing, usage can be detected in a short time window of only three days, but the advantage is that it can detect compounds with concentrations of less than 0.5 ng/mL. Though blood testing is not frequently used as the procedure is invasive, it can detect usage within 12-24 hours in infrequent users and seven days in heavy users. Finally, hair testing has the special feature of detecting use even after 90 days of exposure and can detect concentrations as low as one pg/mg of sample.

Furthermore, increasing economies of developing countries in APAC and the Middle East region is expected to increase opportunities for the stakeholders in these regions. In addition, the need for more testing laboratories to meet the demand of growing cannabis producers worldwide will likely create opportunities for the cannabis testing market during the forecast period. Strict federal guidelines for safety testing must be met by prescription distributors before opioid use and expand understanding of cannabis through promotions, seminars, and workshops. Increased discovery and production of a potential therapeutic medication for chronic disorders by major healthcare companies and increased use of cannabis in leisure and personal use further expand the worldwide demand for cannabis testing.

MARKET RESTRAINTS

Factors such as the high cost of analytical instruments, lack of specialized laboratories, and high start-up costs for cannabis testing laboratories hamper the growth of the cannabis testing market. In addition, the lack of industry standards for cannabis testing and the high cost of installing a cannabis test facility restrict the market’s growth rate. Furthermore, the lack of trained experts in cannabis testing is one of the main issues facing the industry for cannabis testing. If the legal cannabis industry expands, the demand for laboratory-tested cannabis will also increase. However, the initial cost to set up cannabis testing labs and the cost of the cannabis testing instruments are very high. In addition, the basic criteria to be met require the testing instrument, inventory control, quality control, trained employees, data management, and administrative functions to set up a research facility. Also, the lack of uniform test requirements would further impede the future demand for cannabis testing. Moreover, new entrants are investing in the cannabis testing industries due to favorable government funding, shortage of providers and manufacturers in developing markets, and attractive growth prospects for the cannabis testing market in the coming years.

Impact Of COVID-19 On The Global Cannabis Testing Market

COVID-19 is a recently found novel coronavirus that causes an infectious disease. In a short period, it exploded all over the globe. Following the World Health Organization's announcement of the virus's emergence as a pandemic, many existing pharmaceutical firms and small entrepreneurs have come in to produce drugs and vaccines to tackle the epidemic. Cannabis testing involves identifying the active ingredients and significant chemical compounds in a given cannabis sample. This testing also includes identifying fungi and bacteria, which, if left unnoticed, can lead to infections. However, market growth has reduced slightly due to the lockdowns in various countries. Additionally, due to the closure of laboratories, the dwindling number of cannabis tests conducted, and some limits on the import and export of cannabis testing devices, numerous market players supplying products and software to the cannabis testing market saw a drop in sales of instruments and supplies.

According to an article published by MJBizDaily in March 2020, most federally regulated cannabis laboratories in Canada favor COVID-19 research, which has affected the number of cannabis studies done in the labs. COVID-19 has had many positive impacts on the growth of the market for cannabis testing. Some Cannabis sativa extracts may be used in therapies to prevent infection with SARS-CoV-2, the virus that causes COVID-19, according to researchers from the University of Lethbridge in Alberta, Canada, and cannabis testing companies Pathway RX and Swysh Inc. In addition, according to the researcher, CBD, a non-intoxicating cannabinoid (chemical compound) found in cannabis ingredients, will help reduce the cytokine storm and extreme pulmonary inflammation induced by COVID-19. As a result, the global cannabis testing market is projected to expand faster over the forecast period. In the coming years, the expanded use of cannabis research in medicine will fuel consumer demand.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Cannabis Testing Market By Testing Procedures

Based on the testing procedure, in 2023, the potency testing segment accounted for the largest share and is predicted to grow at a CAGR of 21.7% during the forecast period owing to the presence of contributing factors such as a rise in the usage of effective potency testing techniques like GC (Gas Chromatography) and HPLC (High-performance Liquid Chromatography) to test samples, growth in demand to examine the potency of various cannabinoids especially CBD (Cannabidiol), and THC (Tetrahydrocannabinol) in the cultivation of cannabis.

Global Cannabis Testing Market By End-User

Based on end-users, the cannabis laboratories segment accounts for the largest market share due to the rising demand for cannabis testing software in labs. Furthermore, it is expected to grow rapidly during the forecast period due to the escalation of legalization procedures to use cannabis worldwide for medical and recreational purposes. In addition, various authorities' stringent regulations to ensure superior quality cannabis products and patient safety are increasing cannabis testing lab activities, eventually resulting in the growth of the cannabis testing market during the forecast period.

The cannabis cultivators segment is expected to showcase promising growth during the forecast period and is predicted to register a CAGR of 60% from 2024 to 2029. This segment is strongly driven by factors such as the rise in research activities and growth in the numerous research centers and laboratories by government and private in numerous countries by imposing strict rules and regulations on the THC content of cannabis products.

REGIONAL ANALYSIS

During the forecast period, the cannabis drug manufacturers segment is forecasted to exhibit a healthy CAGR due to the rise in acceptance rate and numerous clinical trial centers by prominent key players such as Solvay Pharmaceutical, Sanofi, and Pfizer.

Geographically, the North American cannabis testing market had the largest share globally in 2023, accounting for around 34%, and is also the fastest-growing market. The North American market is majorly supported by the increase in the number of testing laboratories, the government's growth of guidelines for cultivators of marijuana, and the presence of many cultivators.

The European cannabis testing market is predicted to register a substantial share in the global market during the forecast period. The increasing legalization of cannabis in major European countries and the increasing use of the herb in drug production and research were expected to fuel the demand for cannabis testing services.

The Asia-Pacific cannabis testing market is expected to witness the highest growth rate during the forecast period. Growing awareness about drug testing and price reduction are these countries' major driving factors. In addition, factors such as the increasing biopharmaceutical sector, rising life science research, rising investments by pharmaceutical and biotechnology firms, the growing number of cannabis testing labs in the country, and the legalization of cannabis for medicinal use are projected to push the industry further. Also, high population countries like China and India, a spike in the number of incidents involving cannabis intoxication and acceptance of developments from western regions regarding medicinal and recreational cannabis usage powered the Asia Pacific market.

The Latin American cannabis testing market is expected to capture a considerable share of the worldwide market in the coming years.

The cannabis testing market in MEA is predicted to register a moderate CAGR during the forecast period.

KEY PLAYERS IN THE GLOBAL CANNABIS TESTING MARKET

Some of the notable participants leading the global cannabis testing market profiled in this report are Agilent Technologies, Inc., Shimadzu Corporation, Waters Corporation, PerkinElmer, Inc., AB SCIEX LLC, Millipore Sigma, Restek Corporation, LabLynx, Inc. (U.S.), Steep Hill Labs, Inc., PharmLabs, LLC, SC Laboratories, Inc., Digipath Labs, Inc., CannaSafe Analytics, Accelerated Technology Laboratories, Inc.

These business leaders have adopted different tactics, such as mergers and acquisitions, to secure a better position in the cannabis testing market.

RECENT MARKET DEVELOPMENTS

• In January 2021, MCR Labs, a Massachusetts-based cannabis testing firm, opened a laboratory in Allentown and started to approve and analyze product samples for medical marijuana licensees.
• In January 2019, Digipath, Inc. announced an agreement with Cannabis, Inc. to increase its market share in cannabis testing and strengthen its position in the domestic and international cannabis testing market.
• In January 2019, Anandia Laboratories announced the inauguration of the Cannes Innovation Center (CIC) to develop cannabis using modern plant breeding tools. This facility will allow the company to expand its product portfolio and customer base.
• In March 2017, Shimadzu Company launched a cannabis analyzer for cannabinoid testing. The instrument is based on a chromatography technique and offers high performance, high sensitivity, and high resolution. Furthermore, various technological developments will stimulate the adoption of chromatography techniques for cannabis testing resulting in the growth of the cannabis testing market over the forecast period.

This research report on the global cannabis testing market has been segmented and sub-segmented testing procedures, end-users, products & software, and regions. 

By Testing Procedures

• Terpene Profiling
• Potency Testing
• Residual Solvent Screening
• Pesticide Screening
• Genetic Testing
• Heavy Metal Testing
• Microbial Analysis

By End-user

• Cannabis Cultivators
• Laboratories
• Drug Manufacturers & Dispensaries
• Research Institutes

By Product & Software

• Analytical Instruments
• Consumables and Software

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa