Cannabidiol Testing (CBD) Market

Global Cannabidiol Testing (CBD) Market Size (2024 to 2029)

The global Cannabidiol Testing (CBD) market share value is expected to grow at a CAGR of 4.8% during the forecast period 2024 to 2029 to reach USD 60.90 million by 2029 from USD 48.18 million in 2024. 

CBD, a chemical found in Cannabis sativa (cannabis/hemp), is approved in the U.S. as a drug for seizures. Unlike THC, another cannabis compound, CBD is obtained from hemp with low THC levels. It affects brain chemicals differently from THC. While CBD is used for various conditions, scientific evidence is lacking for most claims. In 2018, laws made selling hemp products legal in the U.S., but not all CBD products from hemp are lawful. CBD, being an approved drug, cannot be added to foods or dietary supplements but can be used in cosmetics. Some CBD products labeled as dietary supplements exist, with inconsistent CBD amounts compared to the label. Cannabidiol testing detects cannabis use; it contains cannabinoids like THC. Cannabidiol testing, usually done via urine but also with blood, saliva, or hair samples, may serve medical screening or employment purposes. During the forecast period, the global cannabidiol testing (CBD) market is anticipated to experience substantial growth as consumer awareness about the benefits of cannabis increases and the medical usage of CBD becomes more prevalent.

Global Cannabidiol Testing (CBD) Market Drivers:

The primary factor that is expected to drive the global cannabidiol testing (CBD) market is rising applications in the medical and pharmaceutical industry and increasing innovation and R&D in this industry.

It is quite evident that cannabidiol's widespread therapeutic use is attributed to its non-psychoactive nature, such as anxiety and depression treatment, pain relief, cancer symptom relief, stress reduction, diabetes prevention, and inflammation management. The increasing adoption of CBD-based products for addressing health issues is expected to fuel the growth of the global cannabidiol testing (CBD) market. For instance, according to the World Health Organization, CBD does not exhibit abuse or dependence potential in humans, and there is no evidence of public health problems linked to pure CBD use. Another study in 2019 further supports CBD's efficacy in reducing PTSD-related symptoms, including nightmares, in adults. Moreover, the market growth is also driven by increased investment in CBD research by pharmaceutical and biotechnology companies. Testing CBD products ensures their safety, leading to a higher demand for CBD testing services in laboratories. For instance, much government scrutiny targets CBD manufacturers making false claims, while legitimate research may show CBD as a non-toxic option for managing anxiety, insomnia, and chronic pain. However, claims of it being a cure-all for cancer or COVID-19 are baseless. More research is needed to explore its full potential. Thus, it can be inferred that the global cannabidiol testing (CBD) market will keep on rising and drive the market in the foreseeable future.

Global Cannabidiol Testing (CBD) Market Restraints:

The factors likely to hamper the global cannabidiol testing (CBD) market growth are the high cost of testing and laboratory equipment. During the forecast period mentioned earlier, the market's growth may be impeded by the significant expenses associated with laboratory equipment and the absence of standardized quality regulations. Additionally, stringent government rules and regulations, combined with the high costs of starting up, are expected to pose the primary challenges to market expansion. Another factor restraining the market is likely to be the lack of a skilled workforce for testing and recording errorless data. For instance, in 2021, nearly 10% of employers intended to exclude cannabidiol from their drug testing panels due to recent changes in legislation. This would lead to a decrease in laboratory professionals, which in turn is likely to impede the global cannabidiol testing (CBD) market shares.

Impact of COVID-19 on the Global Cannabidiol Testing (CBD) Market:

Businesses across various industries worldwide faced significant disruptions during the global COVID-19 pandemic as governments implemented lockdown measures to contain the spread of the disease. Manufacturing facilities had to temporarily close, leading to production halts. Furthermore, the global availability of cannabidiol and cannabis was impacted due to shortages of raw materials and disruptions in the supply chain caused by import and export restrictions imposed by different countries. The global cannabidiol testing (CBD) market is expected to face limitations in growth due to the impact of the COVID-19 pandemic. However, the pandemic's effect on bones and joints, causing pain, seizures, psychotic problems, and mental health, is anticipated to drive the growth of the global cannabidiol testing (CBD) market. According to the Journal of Clinical Orthopedics and Trauma, the coronavirus can affect bones and joints, leading to increased research, development, and production of drugs. 

REPORT COVERAGE: 

This research report on the Cannabidiol Testing (CBD) Market has been segmented and sub-segmented based on Product and Software, Testing Procedures, End-User, and region. 

Global Cannabidiol Testing (CBD) Market - By Product and Software:

• Analytical Instruments
• Consumables
• Software

Based on product and software, analytical instruments are likely to dominate the global cannabidiol testing (CBD) market. This is attributed to the cannabinoids, which encompass THC, CBD, and CBN, which are typically analyzed using methods like HPLC and GC. 

On the other hand, consumables are anticipated to record substantial CAGR during the entire projected period.

Global Cannabidiol Testing (CBD) Market - By Testing Procedures:

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

Based on testing procedures, residual solvent screening has dominated the global cannabidiol testing (CBD) market in 2022, and it is anticipated to grow at the highest CAGR during the projected period. This is due to the processed cannabis and hemp, which contain high amounts of residual solvents as by-products of extraction. To maintain acceptable levels in cannabis concentrates, distillates, and extracts, producers must adhere to strict protocols. Residual solvent testing involves extracting THC and CBD from cannabis flowers. Commonly used laboratory solvents for extraction include, but are not limited to, ethanol, n-butane, isobutane, propane, and hexane. This depicts the increasing demand for residual solvent screening procedures in the global cannabidiol testing (CBD) market. 

On the other hand, terpenes profiling is also increasing with moderate CAGR during the forecast period. Terpenes, renowned for their aromatic attributes, play a role in the medicinal properties of cannabis. GC/MS, gas chromatography/flame ionization detection (GC/FID), and HPLC are commonly used methods for their analysis. These compounds, responsible for the distinct aroma of cannabis and contributing to its therapeutic effects, undergo analytical examination.

Global Cannabidiol Testing (CBD) Market - By End-User:

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

Based on end-users, laboratories are expected to lead the global cannabidiol testing (CBD) market. This is due to the demand for laboratory testing and the ease of performing tests on cannabis products, including dried flowers, extracts, concentrates, and edibles, which require different sample preparation processes during testing in laboratories. The test results are presented on a Certificate of Analysis (COA), indicating whether each substance in the batch passes or fails the testing criteria.

On the other hand, cannabis cultivators are likely to record substantial market growth during the projected period 2023-2028.

Global Cannabidiol Testing (CBD) Market - By Region:

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

Based on region, North America dominates the global cannabidiol testing (CBD) market share. The region's growth is driven by the increasing legalization of cannabis and the rising usage of CBD. Additionally, a growing number of cannabis cultivators contribute to market enhancement. Also, due to growing consumer awareness of cannabis benefits and several factors, such as a large population of health-conscious individuals, growing acceptance of CBD products, and the presence of major manufacturers, further boost the region's growth in the global market. For instance, the 2018 Farm Bill's legalization of hemp in the United States has made CBD almost universally accepted, similar to oranges being legal while keeping orange juice illegal. With a high number of CBD companies and lenient laws on CBD product usage, North America is considered the most advanced region in cannabis and CBD-related products.

Europe also holds a significant share of the overall industry and is expected to witness substantial expansion in the coming years. Eastern and South-Eastern Europe, as well as Central Asia, show high rates of individuals undergoing treatment for opioid use disorders. The region is witnessing increased awareness about these neuro disorders among the general population, coupled with growing healthcare spending, which will contribute to market expansion.

The rest of the world, including Latin America and the Middle East & Africa, will witness a rise in the number of patients suffering from opioid dependency and is also expected to experience substantial growth, with a noteworthy CAGR in the forecasted period.

KEY MARKET PLAYERS:

Key Market Players of Cannabidiol Testing (CBD) Market are  CannaSafe (U.S.), ANRESCO (U.S.), Merck KGaA (Germany), Steep Hill, Inc (U.S.), Eirlab Research Group (Ireland), GOODBODY HEALTH INC. (U.S.), CW ANALYTICAL (U.S.), Agilent Technologies, Inc. (U.S.), Pure Analytics (U.S.), SC Labs (India), Battelle Memorial Institute (U.S.), Aphria Inc (Canada), Medical Marijuana, Inc (U.S.), STENOCARE A/S (Denmark), Cannabis Science Inc (U.S.), Thermo Fisher Scientific (U.S.), Labcompare.

RECENT HAPPENINGS IN THE MARKET:

In September 2022, Labcompare Researchers Awarded $7.4M to Study CBD, Medical Cannabis for Veterans’ Chronic Pain. The development of an intervention to help empower veterans with chronic pain to maximize benefits and minimize harm from products available in legal dispensaries.