During the forecast period, the global cannabis testing market is forecasted to hike at a CAGR of 12.42%. This market was worth USD 1369.28 million in 2021 and is estimated to grow USD 2458.72 million by 2026. In the last few years, the cannabis testing market has evolved from naive exuberance to a steadfast and credible stance that seeks legitimacy in numerous ways. However, government support and companies play an important role in this growth, a lack of professionals drawn the market. Also, seriously impacted by the COVID-19 pandemic, the global demand for the cannabis testing market is projected to rise faster over the next two years. In addition, 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 by using breathalyzers, detecting cannabis use by any test takes a considerable amount of time. A few tests like the Duquenois-Levine test can be used for quick detection, but it’s unreliable since it gives false-positive results for many other substances than cannabinoids.
Cannabis testing refers to analyzing a single cannabis sample that can be tested to determine elements like THC, CBD, and terpene levels and impurities such as residual solvents, mold, diseases, pests, or pesticides residues. Every country imposes its standards and regulations on what needs to be tested and printed on cannabis labels. Individual producers can choose higher standards and go as long as their samples are analyzed for CBC and CBG levels. Certified chemical and laboratory technicians can only perform cannabis testing.
MARKET DRIVERS:
The legalization of cannabis and support from the governments boost the global cannabis testing market.
The increase in the medicinal use of cannabis would stimulate the medical cannabis market, making 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 legalize the use of medical cannabis in different countries.
Also, government support to conduct cannabis testing drives 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. Numerous regulatory bodies have started to place overall restrictions on residual solvents, bug sprays, contaminants, heavy metals, microorganisms, and mycotoxins for plant testing. It also led to numerous new laboratories, particularly in locations where growth is at its height.
Furthermore, growing awareness and adoption of LIMS in labs testing cannabis is another factor boosting the market. Strict federal guidelines for safety testing must be met by prescription distributors before opioid use and expands understanding of cannabis by 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 add to expanding the worldwide demand for cannabis testing.
Increasing economies of developing countries in APAC and the Middle East region are expected to increase opportunities for the stakeholders operating in these regions. In addition, the need for more testing laboratories to meet the demand of growing cannabis producers across the world is likely to create opportunities for the cannabis testing market during the forecast period.
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 a 12-24 hours window 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.
MARKET RESTRAINTS:
The factors limiting the growth of the cannabis testing market are the high cost of analytical instruments, lack of specialized laboratories, high start-up costs for cannabis testing laboratories, lack of industry standards for cannabis testing, and high cost of installing a cannabis test facility.
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 begins to expand, the demand for laboratory-tested cannabis will also increase. However, the initial cost to set up cannabis testing labs and the cost involved in the cannabis testing instruments is very high. 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 cannabis testing industries due to favorable government funding, shortage of providers, and manufacturers in developing markets are providing 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 of time, it had 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 major chemical compounds in a given cannabis sample. This testing also includes identifying fungi and bacteria, which, if left unnoticed, can lead to infections. However, due to the lockdowns in various countries, the market growth has reduced slightly. 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 industry saw a drop in sales 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 research. 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, as well as cannabis testing companies Pathway RX and Swysh Inc. 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. The global cannabis research industry is projected to expand at a faster pace over the next two years. In the coming years, the expanded use of cannabis research in medicine is projected to fuel consumer demand.
REPORT COVERAGE:
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2020 to 2026 |
|
Base Year |
2020 |
|
Forecast Period |
2021 to 2026 |
|
Segments Analysed |
By Testing Procedures, End User, Product & Software and Region |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
|
Regions Analysed |
North America, Europe, Asia Pacific, Latin America, Middle East, and Africa |
This research report on the global cannabis testing market has been segmented and sub-segmented testing procedures, end-users, products & software, and region.
Cannabis Testing Market - By Testing Procedures:
Based on the testing procedure, in 2020, the potency testing segment accounted for the largest share and predicted to grow at a CAGR of 21.7% from 2021 to 2026 due 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.
Cannabis Testing Market - By End-user:
Based on end-user, the cannabis laboratories segment accounts for the largest market share in this segment due to the rising demand for cannabis testing software in labs. The Cannabis laboratories market segment is dominating the global market. It is expected to grow rapidly during the forecast period due to the escalation of legalization procedures to use cannabis for medical and recreational purposes worldwide. 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 segment of cannabis cultivators is expected to showcase promising growth during the forecast period and is predicted to register a CAGR of 59.4% between 2020 to 2025. This segment is strongly driven by the factors such as the rise in the research activities, 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 cannabis products.
During the forecast period, the cannabis drug manufacturers segment is forecasted to exhibit a healthy CAGR due to the rise of acceptance rate and numerous clinical trial centers by large key players such as Solvay pharmaceutical, Sanofi, and Pfizer.
Cannabis Testing Market - By Product & Software:
Cannabis Testing Market - By Region:
Geographically, North America had the leading share in the global cannabis testing market, 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 a large number of cultivators.
Europe follows North America in accounting majority of the market share. 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.
Developing countries in the Asia-Pacific region are expected to witness the highest growth rate going based on the country. Growing awareness about drug testing and reduction in prices are the major driving factors in these countries. 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 industry.
KEY MARKET PARTICIPANTS AND SHARE INSIGHTS:
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:
1.Introduction
1.1 Market Definition
1.2 Study Deliverables
1.3 Base Currency, Base Year and Forecast Periods
1.4 General Study Assumptions
2. Research Methodology
2.1 Introduction
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Econometric Modelling
2.2.4 Expert Validation
2.3 Analysis Design
2.4 Study Timeline
3. Overview
3.1 Executive Summary
3.2 Key Inferences
3.3 Epidemology
4. Drivers, Restraints, Opportunities, and Challenges Analysis (DROC)
4.1 Market Drivers
4.2 Market Restraints
4.3 Key Challenges
4.4 Current Opportunities in the Market
5. Market Segmentation
5.1 Product & Software
5.1.1 Analytical Instruments
5.1.1.1 Chromatography Instruments
5.1.1.1.1 Liquid Chromatography
5.1.1.1.2 Gas Chromatography
5.1.1.1.3 Other Chromatography Instruments
5.1.1.2 Spectroscopy Instruments
5.1.1.2.1 Atomic Spectrometry Instruments
5.1.1.2.2 Mass Spectroscopy Instruments
5.1.1.3 Other Analytical Instruments
5.1.2 Consumables
5.1.2.1 Sample Preparation Products
5.1.2.2 Standards and CRMS
5.1.2.3 Chromatography Columns
5.1.2.4 Supplies and Accessories
5.1.3 Software
5.1.5 Y-o-Y Growth Analysis, By Product & Software
5.1.6 Market Attractiveness Analysis, By Product & Software
5.1.7 Market Share Analysis, By Product & Software
5.2 Testing Procedures
5.2.1 Terpene Profiling
5.2.2 Potency Testing
5.2.3 Residual Solvent Screening
5.2.4 Pesticide Screening
5.2.5 Genetic Testing
5.2.6 Heavy Metal Testing
5.2.7 Microbial Analysis
5.2.8 Y-o-Y Growth Analysis, By Testing Procedures
5.2.9 Market Attractiveness Analysis, By Testing Procedures
5.2.10 Market Share Analysis, By Testing Procedures
5.3 End Users
5.3.1 Cannabis Cultivators
5.3.2 Laboratories
5.3.2.1 Small-Scale Laboratories
5.3.2.2 Medium-Scale Laboratories
5.3.2.3 Large-Scale Laboratories
5.3.3 Drug Manufacturers & Dispensaries
5.3.4 Research Institutes
5.3.5 Y-o-Y Growth Analysis, By End Users
5.3.6 Market Attractiveness Analysis, By End Users
5.3.7 Market Share Analysis, By End Users
6. Geographical Analysis
6.1 Introduction
6.1.1 Regional Trends
6.1.2 Impact Analysis
6.1.3 Y-o-Y Growth Analysis
6.1.3.1 By Product & Software
6.1.3.2 By Testing Procedures
6.1.3.3 By End Users
6.1.4 Market Attractiveness Analysis
6.1.4.1 By Product & Software
6.1.4.2 By Testing Procedures
6.1.4.3 By End Users
6.1.5 Market Share Analysis
6.1.5.1 By Product & Software
6.1.5.2 By Testing Procedures
6.1.5.3 By End Users
6.2 North America
6.1.1 Introduction
6.1.2 United States
6.1.3 Canada
6.3 Europe
6.2.1 Introduction
6.2.2 U.K
6.2.3 Spain
6.2.4 Germany
6.2.5 Italy
6.2.6 France
6.4 Asia-Pacific
6.3.1 Introduction
6.3.2 China
6.3.3 India
6.3.4 Japan
6.3.5 Australia
6.3.6 South Korea
6.5 Latin America
6.4.1 Introduction
6.4.2 Brazil
6.4.3 Argentina
6.4.4 Mexico
6.4.5 Rest of Latin America
6.6 Middle East & Africa
6.5.1 Introduction
6.5.2 Middle-East
6.5.3 Africa
7.Strategic Analysis
7.1 PESTLE analysis
7.1.1 Political
7.1.2 Economic
7.1.3 Social
7.1.4 Technological
7.1.5 Legal
7.1.6 Environmental
7.2 Porter’s Five analysis
7.2.1 Bargaining Power of Suppliers
7.2.2 Bargaining Power of Consumers
7.2.3 Threat of New Entrants
7.2.4 Threat of Substitute Products and Services
7.2.5 Competitive Rivalry within the Industry
8.Market Leaders' Analysis
8.1 Agilent Technologies Inc.
8.1.1 Overview
8.1.2 Product Analysis
8.1.3 Financial analysis
8.1.4 Recent Developments
8.1.5 SWOT analysis
8.1.6 Analyst View
8.2 Shimadzu Corporation
8.3 Waters Corporation
8.4 PerkinElmer Inc.
8.5 AB SCIEX LLC
8.6 Millipore Sigma
8.7 Restek Corporation
8.8 LabLynx Inc. (U.S.)
8.9 Steep Hill Labs Inc.
8.10 PharmLabs LLC
8.11 SC Laboratories Inc.
8.12 Digipath Labs Inc.
8.13 CannaSafe Analytics
8.14 Accelerated Technology Laboratories Inc.
9.Competitive Landscape
9.1 Market share analysis
9.2 Merger and Acquisition Analysis
9.3 Agreements, collaborations and Joint Ventures
9.4 New Product Launches
10.Market Outlook and Investment Opportunities
Appendix
a) List of Tables
b) List of Figures
Related Reports
