According to Coherent Market Insights, the global cannabis testing services market is estimated to be valued at US$ 1,658.9 million in 2022 and is expected to exhibit a CAGR of 13.4% during the forecast period (2022-2030).
Key Trends and Analysis of the Global Cannabis Testing Services Market:
The growing legalization of medical cannabis across various countries is one of the critical factors influencing the growth of the global cannabis testing services market. For instance, in 2018, The Farm Bill was proposed to legalize hemp production in the U.S. Following the trend, several nations in Europe and Asia are preparing to legalize medicinal cannabis to meet the need of growing patient population. Furthermore, the Australian government in January 2018, announced that it would allow medicinal cannabis exports, which is expected to provide growth opportunities for domestic manufacturers. Increasing number of cannabis export increased the testing carried for cannabis in laboratories which is expected to further drive the market growth.
Key Market Takeaways:
The global cannabis testing services market is expected to exhibit a CAGR of 13.4% during the forecast period, owing to increasing R&D activities in cannabis production. For instance, in November 2018, a team of agricultural technology and controlled environment experts at the University of Guelph, located in Canada worked on methods for cultivating higher-quality cannabis. The team is focused on medical cannabis production in a controlled setting, using patented plant-growing equipment that uses chambers to monitor and manage all factors during the growth process, including nutritional demands.
In terms of end users, testing laboratories are expected to exhibit the highest CAGR in the cannabis testing services market during the forecast period, as cannabis testing facilities are becoming more efficient at providing complete analysis of possible analytes. For instance, according to Health Canada, on October 17, 2018, the federal government announced legalization of cannabis in Canada under the Cannabis Act (C-45). Moreover, Government of Canada, in 2018, approved 56 laboratories under Narcotic control regulation Canada for cannabis testing service.
Based on test type, cannabinoid profiling segment is estimated to grow with the fastest CAGR in the global cannabis testing services market over the forecast period, owing to increasing analysis of cannabis to detect its medicinal uses. Cannabinoid testing for cannabidiol (CBD), cannabidiolic acid (CBDA) and tetrahydrocannabinolic acid (THCA) is performed to assess the therapeutic advantages of cannabis (THCA). There are around 70 identifiable cannabinoid compounds, which possess distinct medicinal benefits and pharmacological applications.
Key players operating in the global cannabis testing services market include Thermo Fisher Scientific Inc., Merck KGaA, Shimadzu Corporation, PerkinElmer, Inc., Steep Hill Labs, Inc., CB Scientific Inc., Alpha-CAT, Orange Photonics, Inc., Gobi Labs, MyDx, Inc., SC Laboratories Inc., Restek Corporation, Waters Corporation, PharmLabs LLC, Eurofins Scientific, EVIO Labs, ProVerde Laboratories, Inc., Praxis Laboratory, Atlantic Test Labs, Inc., American Clinical Solutions, LLC., MCR Labs, Cannalysis, Aurum Laboratory, LLC, The Niva Labs, Encore Labs, SGS Canada Inc., Agricore Laboratories, and California Cannabis Testing Labs