Cannabis Testing Market Size Was Valued at USD 1,591.6 Million in 2021 and is Projected to Reach USD 4,191.8 Million by 2030, Growing at a CAGR of 13.2% From 2022 to 2030.
Cannabis Testing Market: Overview
Cannabis testing is a type of drug testing in which active ingredients like terpene and cannabinoids is detected by using chromatographic or analytical testing. The increase in legalization of cannabis in various countries, rising awareness through programs such as conferences and seminars and increase in the technological advancements in technologies used for testing is fueling the growth of the demand for global cannabis testing market.
Cannabis is a type of psychoactive drug which has recreational and medicinal use. Cannabis mainly consists of THC (tetrahydrocannabinol) that causes changes in perception, increases the appetite and sensation of euphoria. There are different types of cannabis such as topical cannabis, inhaling cannabis, solid edible cannabis and liquid edible cannabis which are tested during the cannabis testing procedure
Key Market Insights:
- The increase in the use of medical cannabis for various applications, such as reduction of nausea caused after chemotherapy, stimulation of appetite in patients suffering from AIDS, and controlling of muscle spasms, is fueling the demand for cannabis globally.
- Based on Product and Software, the market is segmented into Products and Software (Cannabis LIMS). The product segment accounted for the largest share of the market.
- By services, the potency segment accounted for the largest share of more than 30% in 2021 and is expected to register high CAGR.
- Based on end-user, cannabis cultivators dominated the market with a revenue share of XX% in 2020.
- In 2021, North America accounted for the largest market share of the cannabis testing market and accounted for a revenue share of more than 80%.
Report Scope of the Cannabis Testing Market
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Attribute
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Details
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Market Size in 2021
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USD 1,591.6 Million
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Estimated Market Size in 2030
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USD 4,191.8 Million
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CAGR Growth Rate
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13.2% CAGR
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Base Year
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2016 to 2021
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Forecast Years
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2022-2030
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Segmentation
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By Product And Software, By Services, By End-User
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By Product and Software
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- Analytical Instruments
- Consumables
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By Services Type
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- Potency
- Pesticide Screening
- Microbial Analysis
- Heavy Metal
- Residual Solvent Screening
- Terpene Profiling
- Others
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By By End-User
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- Research Institutions
- Laboratories
- Cultivators
- Drug Manufacturers
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Major Regions Covered
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North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa
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Key Market Players
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AB Sciex LLC, Agilent Technologies, Inc., Lablynx LIMS, Steep Hill Labs, Inc., CannaSafe Analytics, Digipath, Inc., SC Laboratories, Inc., Shimadzu Corporation, Thermo Fisher, Perkin Elmer, and Waters Corporation
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Report coverage
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Revenue Forecast, Company Share, Competitive Landscape, Growth Factors, Restraints, Opportunities, Value Chain Analysis, Porter’s Five Forces Analysis, Patent Analysis, Market Attractiveness Analysis by Segments
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Cannabis Testing Market: Dynamics
Legalization of cannabis for medicinal and recreational activity to drive growth of the cannabis testing market
Increasing approval of medicinal cannabis products along with extensive research and development activities in the medical cannabis market are expected to support growth of the cannabis testing market. The increase in use of medical cannabis for various applications such as to reduce the nausea caused after the chemotherapy, stimulation of appetite in the patients suffering from AIDS, controlling of muscle spasms is fueling the demand for the cannabis globally. This increase in demand has led to the legalization of the cannabis by government in various countries, such as Australia legalized medical cannabis in 2016, which fuels the growth of the global cannabis testing market.
High cost of analytical instrument which will expected to act as market restraints for the growth of the cannabis testing
High cost of analytical instruments for testing cannabis is one of the factors restraining growth of the market. Furthermore, there are no standards for various residue and unwanted material in cannabis such as pesticide residue, heavy metal, and mycotoxin, which results into inauthenticity of test results given by different cannabis testing laboratories. Moreover, some instrument manufacturers now offer dedicated instruments for cannabis potency testing, which include dedicated HPLC or UHPLC devices with hardware and methods optimized for compound isolation and quantitative analysis which cost higher as per the specifications that may hinder the growth during the forecast period.
Global Cannabis Testing Market: Segmentation
The market is mainly segmented based on product and software, services type, end-user and region.
By product and software: The market for cannabis testing is bifurcated on the basis of product and software into cannabis testing product and cannabis software. The Products segment accounted major share of more than 65% in 2021. The segment is expected to register the growth with CAGR of XX% over the forecast period. Products segment for Cannabis Testing is further sub-segmented into Analytical Instruments and Consumables. The Consumables segment is anticipated to register high CAGR of 14.2% from 2021 to 2030. The increasing popularity of cannabis for recreational and medicinal purposes has further spurred the demand for cannabis testing consumables.
By services type: The potency segment held the biggest market share and is expected to grow at the highest CAGR during the forecast period. The rising popularity of cannabis-infused products and the expanding legal cannabis markets across the globe are among the major factors driving the growth of the potency segment. Followed by potency, heavy metal segment accounted for the second largest share of XX% in 2021. The growing adoption of heavy metal testing from cannabis cultivators and from other end user is anticipated to propel the growth of segment in the near future.
By End-User: The market for cannabis testing is bifurcated into cannabis testing laboratories, research institutions, cultivators and drug manufacturers. thecultivators’ segment is expected to held the largest market share in 2021. Drug manufacturers are also important end-users of cannabis testing services, as they must ensure that the cannabis products, they use in their formulations meet all safety and quality standards. Cannabis testing laboratories are another leading segment of the cannabis testing market because they are the most reliable and accurate source for testing the quality of cannabis products.
Regional Insights
North America is projected to lead the cannabis testing market due to the legalization of cannabis by major states in the U.S. and Canada and the presence of major market players. Europe was another leading regional market and is projected to show sturdy growth in the years to come. Key factors predicted to drive the market for cannabis testing services are growing the legalization of cannabis in main European countries and rising usage of the plant in drug development and research.
Asia Pacific region is anticipated to show the maximum growth rate for cannabis testing market. The rise in the use of cannabis to treat diseases, growing awareness about cannabis among the population in developing countries, and an increase in the number of cannabis testing labs are driving the growth of the cannabis testing market in the Asia Pacific region.
Competitive Landscape
Some of the Majoe player dominating the global cannabis testing market are AB Sciex LLC, Agilent Technologies, Inc., Lablynx LIMS, Steep Hill Labs, Inc., CannaSafe Analytics, Digipath, Inc., SC Laboratories, Inc., Shimadzu Corporation, Thermo Fisher, Perkin Elmer, and Waters Corporation among others.
Global Cannabis Testing Market Segment as Follows:
By Product and Software Segment Analysis
- Products
- Analytical Instruments
- Chromatography Instruments
- Liquid Chromatography
- Gas Chromatography
- Other Chromatography Instruments
- Spectroscopy Instruments
- Mass Spectrometry
- Atomic Spectroscopy
- Other Analytical Instruments
- Consumables
- Chromatography Columns
- Standards & CRMS
- Sample Preparation Products
- Supplies & Accessories
- Software (Cannabis LIMS)
By Service Type Segment Analysis
- Potency
- Heavy Metal
- Terpene Profiling
- Microbial Analysis
- Pesticide Screening
- Residual Solvent Screening
- Others
By End User Segment Analysis
- Cannabis Testing Laboratories
- Research Institutions
- Cultivators
- Drug Manufacturers
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- the Middle East & Africa