Cannabis Testing Market – Global Industry Analysis, Size Share, Growth, and Revenue for Forecast 2024 to 2029

Cannabis undergoes a stretched journey from seed to plant to processing before finally ending up on the shelf as a packaged retail product. There are several potential sources of contamination along the way. Any potential contaminant poses a risk to the health of consumers. Hence, cannabis testing is done to ensure that the products are contamination-free and safe for consumption. Medical cannabis is a plant-based medicine derived from the Cannabis sativa or Cannabis indica plant species. It is used to ease symptoms caused by certain medical conditions.

Driving Factors and Expansion of the Cannabis Testing Industry

The surge in cannabis consumption, facilitated by the legalization of medicinal and recreational use in numerous countries, has spurred a rising demand for an array of cannabis-infused products. From tinctures to edibles, this demand encompasses both medical and recreational applications. To ensure the quality and safety of these products, a proliferation of cannabis testing labs, equipped with cutting-edge equipment and software, has emerged worldwide. These labs play a crucial role in providing regulatory-compliant testing services, thereby safeguarding consumer health and enhancing product quality. This expansion is driven by the need to adhere to stringent regulatory standards imposed on the cannabis industry, particularly in regions where legalization has occurred. The formation of associations among cannabis testing labs, such as in Massachusetts, further underscores their commitment to establishing a safe and reliable market for consumers.

Legalization of Medical Cannabis and Rising Number of Cannabis Testing Laboratories in Key Markets such as the U.S. Bolsters the Cannabis Testing Market Growth

Medical cannabis has proven to be effective in treating various medical applications, such as nausea from cancer chemotherapy, muscle spasms caused by multiple sclerosis, poor appetite, and weight loss caused by chronic illness, such as HIV, nerve pain, seizure disorders, Crohn's disease, among others

Citing the benefits of medical cannabis, governments in various countries are legalizing its use. In recent years, countries such as Israel, Australia, North Korea, Spain, the UK, Canada, Portugal, Germany, Italy, Brazil, and the Netherlands have all legalized the use of medical cannabis. In the United States, 37 states, 4 U.S. territories as well as the District of Columbia have also legalized medicinal cannabis. Due to the growing legalization and increased adoption of cannabis testing, the demand for the analytical testing of cannabis to ensure that the products are contamination-free and safe for human consumption has grown. To cater to the growing demand for cannabis testing, the number of cannabis testing laboratories is also growing.

 “Legal right to use marijuana for medical purposes will improve the lives of patients who currently rely on multiple ineffective medications. Medical marijuana use is expected to alleviate patients’ symptoms of epilepsy, multiple sclerosis, chemo-induced nausea, and chronic pain.” - Director, Leading Epilepsy Foundation, Panama

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Strong Government Support for Legalization of Medical Marijuana in LATAM and Middle East & Africa and Selected European Countries Likely to Open New Growth Avenues for the Cannabis Testing Market

Selected European countries, LATAM and the Middle East and Africa are expected to witness high growth in the Cannabis Testing Market in the coming years due to strong government support for the legalization of medical marijuana in these countries. For instance,

• Across Europe, there is considerable variation in the regulatory approach to medical cannabis. Countries such as the UK, the Netherlands, Poland and Portugal have well-established medical cannabis legislation while for a few countries, legislation is quite recent
• The governments of Greece and the UK approved the legalization of cannabis for medical use in 2018, while Germany made it legal for doctors to prescribe medical cannabis in 2017. In December 2021, Malta legalized the cultivation and personal use of cannabis and on October 21, Luxembourg legalized cannabis production and consumption
• In 2020, Lebanon became the first Arab country to legalize the cultivation of the cannabis plant for medical and industrial use
• Following the ground-breaking decision of the Lebanese government to legalize the cultivation, trade, research, and use of cannabis for medicinal purposes in December 2020, Abu Dhabi-based law firm Wasel & Wasel set up the first medical cannabis legal practice in the Middle East. The firm provides counsel to pharmaceutical companies, manufacturers, biotech companies, cannabis real estate companies, Lebanese investors looking to globalize their medical cannabis businesses, and foreign investors looking to explore the medical cannabis market in Lebanon
• Israel was among the first countries to legalize medical marijuana in 1999
• Similarly, multiple African countries such as Lesotho, Zimbabwe, Rwanda, and Morocco permit some form of Cannabis
• Medical marijuana is legal in Argentina, Brazil, Chile, Colombia, Ecuador, México, Panama, Paraguay, and Perú
• In March 2022, Costa Rica also legalized medical marijuana

Key Challenges

The cannabis testing market faces several challenges, including regulatory inconsistencies across different regions, limited standardization of testing methodologies, and the complexity of analyzing cannabis compounds. Additionally, the lack of federal legalization in some countries complicates regulatory compliance, while the dynamic nature of cannabis strains and products necessitates continuous innovation in testing techniques. Furthermore, the high cost of testing equipment and the shortage of skilled personnel pose additional hurdles for testing laboratories.

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Product Outlook

In the cannabis testing market, product segmentation includes Instruments, Consumables & Testing Kits, and Software. Instruments, comprising analytical equipment like chromatography systems and spectrophotometers, hold a significant market share due to their pivotal role in conducting precise and reliable testing. Consumables & Testing Kits, including sample collection tools and reagents, also command a notable share as they are essential for executing testing procedures. Software solutions for data analysis and management represent a smaller yet vital segment, aiding in interpretation and compliance. While Instruments dominate the market share, Consumables & Testing Kits and Software play crucial roles in facilitating accurate and efficient cannabis testing processes.

Services Outlook

In the cannabis testing market, services segmentation includes Potency Testing, Terpene Profiling, Cannabinoid Profiling, Heavy Metal Testing, and Others. Potency Testing, determining the concentration of cannabinoids like THC and CBD, holds a significant market share due to its regulatory importance and consumer demand for accurate potency information. Terpene Profiling, analyzing aromatic compounds in cannabis, and Cannabinoid Profiling, identifying various cannabinoids present, also command notable shares as they provide insights into product quality and effects. Heavy Metal Testing, ensuring products are free from harmful contaminants, represents another crucial segment with its share in the market. Other testing services encompass a variety of analyses such as pesticide screening and microbial testing, contributing to the overall market. While Potency Testing typically dominates, Terpene and Cannabinoid Profiling, Heavy Metal Testing, and other services play vital roles in ensuring the safety and quality of cannabis products.

Competitive Landscape Analysis: Cannabis Testing Market 

The global cannabis testing market is marked by the presence of some of the key market players such as Agilent Technologies, Inc., Shimadzu Corporation, MERCK KGAA, Thermo Fisher Scientific, DigiPath, Inc., Steep Hill Inc., SC Laboratories, Inc., and PharmLabs LLC among others.

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Organic and Inorganic Growth Strategies Adopted by Players to Establish Their Foothold in the Market

Players operating in this market are adopting both organic and inorganic growth strategies such as collaborations, acquisitions, and new product launches to garner market share. For instance,

• In May 2023, Trichome Analytical revealed its licensing of the cannabis analytical data tool PhytoFacts, aimed at providing clients with a comprehensive profile and enhanced comprehension of their tested cannabis.
• In April 2023, SC Labs disclosed its acquisition of C4 Laboratories, located in Scottsdale, Arizona, further expanding its licensed and accredited presence to encompass five states: California, Colorado, Michigan, Oregon, and Arizona.

The cannabis testing market is expected to gain further momentum in the coming years due to an increasing number of testing labs, growing adoption of laboratory information management systems (LIMS) in cannabis testing laboratories, government support for the legalization of medical marijuana, rising investments in R&D activities, technological advancements and aggressive organic and inorganic growth strategies followed by the players.

Key Strategic Questions Addressed

• What is the market size & forecast for the Global Cannabis Testing Market?

• What are the historical, present, and forecasted market shares and growth rates of various segments and sub-segments of the Global Cannabis Testing Market?

• How has Covid-19 impacted the Global Cannabis Testing Market?

• What are the major growth drivers, restraints/challenges impacting the market?

• What are the opportunities prevailing in the market?

• What is the investment landscape?

• Which region has the highest share in the global market? Which region is expected to witness the highest growth rate in the next 5 years?

• Who are the major players operating in the market? What is the competitive positioning of key players?

• Who are the new players entering the market?

• What are the key strategies adopted by players?