Cannabis Testing Market Analysis North America, Europe, Asia, Rest of World (ROW) - US, Canada, UK, Germany, China - Size and Forecast 2024-2028

Cannabis Testing Market Size 2024-2028

The cannabis testing market size is forecast to increase by USD 2.05 billion, at a CAGR of 15.23% between 2023 and 2028.

• The market is experiencing significant growth due to the increasing use of cannabis for medical purposes. With the legalization of medical and recreational marijuana in various regions, the demand for accurate and reliable testing services is on the rise. Additionally, the emergence of luxury cannabis products is fueling the market's expansion, as consumers seek out high-quality, lab-tested products. However, the high cost of analytical products poses a significant challenge for market participants. Producers and testing laboratories must balance the need for comprehensive testing with the financial constraints of their clients. This requires continuous innovation and cost optimization strategies to remain competitive in the market.
• In summary, the market is driven by the expanding legal marijuana industry and the growing demand for premium, tested products. However, the high cost of analytical tools presents a substantial obstacle that market players must navigate to succeed. Companies seeking to capitalize on this market opportunity must focus on cost-effective testing solutions while maintaining the highest standards of accuracy and reliability.

What will be the Size of the Cannabis Testing Market during the forecast period?

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The market continues to evolve as new products and regulations emerge, necessitating advanced analytical methods and technologies. high-performance liquid chromatography (HPLC) and gas chromatography (GC) are essential tools for cannabinoid profiling and potency testing, ensuring consumer safety and regulatory compliance. Laboratory reporting and product labeling require stringent quality control procedures, including sample preparation, automation solutions, and data management. Industry standards mandate safety testing for microbial contamination, heavy metals, and solvent residue in cannabis edibles, vape cartridges, and concentrates. Laboratory accreditation and regulatory compliance are crucial for hemp and pharmaceutical cannabis industries. ASTM International sets the benchmark for clinical trials and method development, enabling best practices in cannabis research.

Cultivation practices and seed-to-sale tracking are integral to maintaining quality assurance and ensuring consistency in cannabis products. Quality management systems employ mass spectrometry and data analytics for test results interpretation and compliance testing. Terpene analysis and compliance with regulatory frameworks are essential for cannabis legalization and recreational use. Continuous innovation in analytical methods and automation solutions enables the cannabis industry to meet evolving consumer demands and regulatory requirements. The market's dynamic nature necessitates a commitment to ongoing research and development, ensuring the highest standards of safety, quality, and consistency.

How is this Cannabis Testing Industry segmented?

The cannabis testing industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Product
  • Consumables
  • Instruments
  • Software
• End-user
  • Cannabis cultivators/growers
  • Cannabis drug manufacturers
  • Others
• Type
  • Potency Testing
  • Terpene Profiling
  • Residual Solvent Screening
  • Heavy Metal Testing
  • Mycotoxin Testing
  • Others
• Geography
  • North America
    • US
    • Canada
  • Europe
    • Germany
    • UK
  • APAC
    • China
  • Rest of World (ROW)

By Product Insights

The consumables segment is estimated to witness significant growth during the forecast period.

The market encompasses essential components such as high-performance liquid chromatography (HPLC) systems, laboratory reporting, product traceability, consumer safety, product labeling, cannabis edibles, quality control, sample preparation, automation solutions, safety testing, laboratory accreditation, and industry standards. HPLC plays a pivotal role in separating and identifying cannabinoid compounds, while safety testing ensures the absence of contaminants like microbial, heavy metals, and solvent residue. ASTM International sets the standards for testing methods, including potency testing, microbiology testing, and compliance testing. Cannabis research and development necessitate analytical data interpretation and data management. Seed-to-sale tracking and method development are crucial for ensuring regulatory compliance in the recreational and medical cannabis industries.

Quality assurance measures, such as cannabinoid profiling and terpene analysis, are essential for maintaining consistency in cannabis concentrates, edibles, and vape cartridges. Sigma-Aldrich, a Merck subsidiary, is a leading company of consumables for the market. Their offerings include reagents for sample preparation, ensuring the removal of impurities before testing, and chromatography and mass spectrometry systems for accurate analysis. Quality control procedures, such as quality management systems and test results interpretation, are essential for maintaining the integrity of the testing process. In the hemp industry, clinical trials and cannabis legalization have driven the demand for advanced analytical methods, including gas chromatography and mass spectrometry, to ensure regulatory compliance and product consistency.

Pharmaceutical cannabis and CBD products require stringent quality control measures, including potency testing and heavy metal analysis, to meet regulatory requirements and consumer expectations. Automation solutions, such as laboratory reporting and data analytics, streamline the testing process, ensuring efficient and accurate results. Cannabis dispensaries rely on these solutions to maintain product traceability and ensure consumer safety. With the evolving cannabis market, best practices in cultivation, extraction methods, and quality control procedures are essential for maintaining a competitive edge.

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The Consumables segment was valued at USD 715.30 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 49% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In the evolving cannabis industry, North America leads the global market due to the legalization of cannabis for medical and recreational purposes. The region's significant growth can be attributed to the therapeutic properties of cannabis, which alleviate pain and nausea related to diseases like epilepsy, cancer, and MS. This, in turn, fuels advocacy and political support for cannabis legalization, with countries such as Canada planning to collect taxes on its use. The market's expansion in North America is driven by the increasing application of cannabis-based products. Robust regulatory frameworks for medical cannabis use further propel market growth.

High-performance liquid chromatography (HPLC) and gas chromatography (GC) are essential analytical methods for cannabis testing, ensuring product traceability, consumer safety, and labeling accuracy. Laboratory reporting, automation solutions, and data management systems facilitate efficient test result interpretation and compliance with industry standards. Microbial contamination and solvent residue testing are crucial safety measures in the cannabis industry, with ASTM International setting the standards for testing methods. Cannabinoid profiling, potency testing, and quality assurance are essential for cannabis research, pharmaceutical cannabis, and cannabis concentrates. Compliance testing, method development, and regulatory compliance are integral parts of the cannabis testing process.

Microbiology testing, heavy metals analysis, and terpene profiling are essential for ensuring product quality and safety. Seed-to-sale tracking and quality control procedures are essential for maintaining transparency and trust in the industry. The vape cartridge market, a significant segment of the cannabis industry, requires stringent testing for safety and quality. Quality management systems and mass spectrometry are essential for ensuring the purity and potency of cannabis extracts. Cannabis dispensaries and clinical trials rely on accurate and reliable testing results to maintain consumer trust and regulatory compliance. As the cannabis industry continues to evolve, best practices, cultivation practices, and extraction methods will continue to shape the market landscape.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of Cannabis Testing Industry?

• The rising demand for cannabis for medicinal applications is the primary factor fueling market growth. This trend is driven by increasing awareness of cannabis' therapeutic benefits and favorable legal regulations in various regions.

• Cannabis, a plant with significant medicinal properties, is gaining increasing recognition for its ability to alleviate symptoms of various diseases. The primary compounds in cannabis, THC and CBD, have been extensively researched for their therapeutic benefits. Medical cannabis, which includes the whole plant or its extracts, contains these compounds in varying quantities. THC is known for its psychoactive effects, while CBD is non-psychoactive and offers potential health benefits without the high. Compliance testing is crucial for ensuring the safety and quality of cannabis products. Laboratories employ advanced analytical methods and automation to interpret test results and develop new methods for cannabis research.
• This data is essential for regulatory compliance in the cannabis industry, which is undergoing rapid legalization, particularly for recreational use. Cannabis concentrates, such as oils and extracts, have gained popularity due to their high potency and ease of use. CBD products, including edibles, topicals, and tinctures, are also in high demand due to their therapeutic benefits. As the industry evolves, it is essential to maintain regulatory compliance and ensure accurate analytical data to maintain consumer trust and safety.

What are the market trends shaping the Cannabis Testing Industry?

• The luxury cannabis market is experiencing significant growth with the emergence of high-end products. This trend reflects the increasing sophistication and demand for premium cannabis offerings.

• In the evolving cannabis industry, adherence to best practices is crucial for ensuring the production of high-quality cannabis products. This includes rigorous cultivation practices, quality control procedures, and comprehensive testing. One essential aspect of quality control is the analysis of heavy metals, solvent residue, terpene profiles, and microbiology. Pharmaceutical-grade cannabis requires stringent quality management systems, which can be facilitated through advanced techniques such as mass spectrometry and data analytics. Cannabis dispensaries prioritize the testing of their products to maintain consumer trust and safety. Terpene analysis is vital in determining the aroma, flavor, and potential therapeutic benefits of cannabis strains.
• Solvent residue testing is crucial for ensuring the absence of harmful contaminants, while microbiology testing helps identify potential contaminants that could lead to health risks. Quality control procedures are not limited to testing but also extend to the production process itself. Implementing robust procedures for drying, curing, and trimming can significantly impact the final product's quality. As the cannabis market continues to grow, it is essential to prioritize quality and safety to meet the increasing demand for premium cannabis products.

What challenges does the Cannabis Testing Industry face during its growth?

• The escalating costs of analytical products pose a significant challenge and hinder the growth of the industry.

• In the market, key players such as Agilent Technologies, Merck, Perkin Elmer, Shimadzu, and Thermo Fisher Scientific provide advanced analytical products. Yet, the high cost of these products presents a significant challenge for cannabis testing laboratories, particularly medium and small-scale operations. These laboratories often allocate a significant portion of their budgets towards research and development of new cannabis strains, which primarily involve the extraction of various cannabinoids. Affordability is a significant concern, especially in developing countries with a high number of small and medium-scale laboratories.
• Consequently, they opt for partnerships with other institutions for proteomic research. Historically, large, intricate, and costly mass spectrometers were typically found in university core facilities. However, advancements in technology have led to the development of more cost-effective alternatives, making cannabis testing more accessible to a broader range of laboratories.

Exclusive Customer Landscape

The cannabis testing market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the cannabis testing market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, cannabis testing market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Agilent Technologies Inc. - This company specializes in the development and distribution of innovative sports products.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Agilent Technologies Inc.
• AmSpec LLC
• Analytical Center Biopharm GmbH
• Bio Rad Laboratories Inc.
• Danaher Corp.
• Digipath Inc.
• Eurofins Scientific SE
• KNAUER Wissenschaftliche Gerate GmbH
• LabWare Inc.
• Medicinal Genomics Corp.
• Merck KGaA
• Mettler Toledo International Inc.
• PerkinElmer Inc.
• Sartorius AG
• SGS SA
• Shimadzu Corp.
• Thermo Fisher Scientific Inc.
• Waters Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Cannabis Testing Market

• In February 2023, SC Labs, a leading cannabis testing laboratory, announced the launch of its new line of solventless extract testing services, expanding its product offerings to cater to the growing demand for solventless extracts in the cannabis industry (SC Labs Press Release).
• In May 2024, Eurofins Scientific, a global scientific testing services provider, entered into a strategic partnership with CannaSafe Analytics, a California-based cannabis testing laboratory, to enhance Eurofins' presence in the US market (Eurofins Press Release).
• In September 2024, Icanas Labs, a Canadian cannabis testing and research company, raised CAD 15 million in a Series A funding round, which will be used to expand its testing capabilities and enter new markets (Business Wire).

Research Analyst Overview

• The cannabis industry is experiencing significant growth and innovation, with a focus on research and development in cannabis biotechnology and genetics. Regulations play a crucial role in shaping the market, mandating rigorous testing for pesticide residue analysis, heavy metal screening, and microbial contamination. Traceability systems ensure product consistency and quality control monitoring, while data interpretation services help businesses make informed decisions based on cannabinoid potency, terpene profile, and cannabinoid degradation. Cannabis breeding and product formulation require sample integrity and extraction efficiency, with emerging cannabinoids and novel extraction techniques driving innovation. Cannabis medicine relies on accurate residual solvent analysis and cannabinoid potency testing, while consumer education is essential for understanding the implications of data integrity and analytical uncertainty.
• Cannabis science encompasses cannabis genomics and nanotechnology, with a focus on improving product formulation and cannabis cultivation practices. Quality control monitoring is paramount, with traceability systems and method validation studies ensuring regulatory compliance and maintaining consumer trust.

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Cannabis Testing Market insights. See full methodology.

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What are the Key Data Covered in this Cannabis Testing Market Research and Growth Report?

• CAGR of the Cannabis Testing industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, Asia, and Rest of World (ROW)
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the cannabis testing market growth of industry companies

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