The global Cannabis Testing Market is valued at USD 1.3 Billion in 2022 and is projected to reach a value of USD 3.5 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 15.20% between 2023 and 2030.
The rise in the prevalence of various disorders and the increase in cannabis consumption and production, the market is projected to experience growth in the coming years. For instance, according to the European Brain Council, there are currently around 600 neurological disorders reported worldwide, making mental disorders a significant contributor to global ill-health and disability. Among them, depression stands out as the most prevalent mental disorder, affecting over 264 million individuals of all ages globally.
Cannabis Testing Market Size, 2022 To 2030 (USD Billion)
- The market is being driven by the increasing recognition and acceptance of software services in cannabis testing laboratories. For instance, the SC Labs name, Agricor, Botanacor, and Can-Lab have undergone rebranding to merge into a single entity. This unified company now operates as SC Labs, providing a comprehensive range of testing services for cannabis in California, Michigan, Oregon, and Colorado. Additionally, SC Labs also offers nationwide hemp testing capabilities.
- North America generated more than 40.90% of revenue share in 2022
- Asia Pacific is expected to grow at the quickest rate from 2023 to 2030
- Instruments segment accounted for the largest market growth. It contributed over 45.5% of the total revenue share in 2022 due to the increasing demand for accurate and innovative cannabis testing technologies
- Potency Testing segment revealed the most significant market growth, contributing more than 36.2% of the total revenue share in 2022
- Cannabis Drug Manufacturers & Dispensaries segment accounts for largest revenue of 53.2% in 2022
- Cannabis testing Laboratories segment lead the market with market share of 58.5% in 2022
Report Coverage & Deliverables
- Real-Time Data Updates:
- Competitor Benchmarking
- Market Trends Heatmap
- Custom Research Queries
- Market Sentiment Analysis
- Demographic and Geographic Insights
The market has experienced impressive growth due to the increasing legalization of cannabis worldwide, with more than 40 countries allowing some form of legal cannabis use. This growth is fueled by the growing demand for cannabis products that are safe and of high quality, as well as stricter regulations. Additionally, the market benefits from the presence of over 1,000 cannabis testing labs globally, serving the rapidly expanding cannabis industry. Given the ongoing wave of legalization and the ongoing focus on product safety and quality, the market is predicted to continue its robust growth in the years to come.
Top Market Trends
- Increased Legalization: The need for cannabis testing has increased dramatically as a result of the ongoing cannabis legalization in numerous regions and nations. The demand for quality assurance and safety testing is projected to grow as additional markets open up.
- Advanced Testing Technologies: The industry has been implementing cutting-edge technology including high-performance liquid chromatography (HPLC), mass spectrometry, and genetic testing. As the sector develops, this trend is anticipated to persist.
- Expanding Product Variety: Cannabis products have become more varied as a result of the cannabis industry's expansion, including edibles, concentrates, and topicals. The need for testing services is fueled further by the potential for distinct testing requirements for each product category.
- Rising Consumer Awareness: Customers are learning more about cannabis products and are growing more worried about the safety and quality of the items. As a result, there is now a market need for precise testing and visible labeling.
- Testing for Cannabinoid Profiles: Consumers and manufacturers are becoming more interested in testing for particular cannabinoid profiles (such as CBD, THC, and other cannabinoids) in order to generate products with consistent effects. This interest extends beyond basic safety testing.
The globel Cannabis Testing market can be categorized into Product , Test, Service , End user , Region. The Market can be categorized into Instruments, Consumables , Software based on Product . The Market can be categorized into Potency Testing, Terpene Profiling, Residual Solvent Analysis, Microbial Analysis, Pesticide Screening, Heavy Metal Testing, Other Services based on Test. The Market can be categorized into Cannabis Drug Manufacturers & Dispensaries, Cannabis Cultivators/Growers based on Service . The Market can be categorized into Cannabis testing Laboratories , Research Institutes , Others based on End user . The Market can be categorized into North America, Europe, Asia Pacific, Latin America, Middle East & Africa based on Region.
Below tree is interactive. You can click the nodes to get more information.
Based on Product
Instruments holds the largest share
The cannabis testing market is experiencing a significant growth in the instruments segment as there is an increasing demand for accurate and reliable assessments of cannabis products. This growth is supported by the development of advanced testing technologies. These cannabis testing instruments are crucial in evaluating the potency, purity, and contaminants in cannabis items, thereby ensuring their safety and quality in the expanding cannabis industry. Chromatography instruments for compound separation and identification, spectroscopy instruments for quantifying different compounds, and microscopy instruments for detecting contaminants such as mold and mildew are among the essential instruments driving the future of cannabis quality assurance.
Based on Test
Potency Testing will dominate the market during Forecast Period
The market is anticipated to be dominated by the potency testing segment due to growing demand for cannabis products for both medical and recreational use. To ensure that these products meet the required potency standards, rigorous assessments are necessary. Additionally, regulatory frameworks governing the cannabis industry are becoming stricter globally, making potency testing a mandatory step for product distribution. Moreover, there have been significant technological advancements in cannabis potency testing, resulting in improved accuracy, reliability, and cost-effectiveness.
Based on Service
Cannabis Drug Manufacturers & Dispensaries will account for largest market share
The Cannabis Drug Manufacturers & Dispensaries segment is expected to dominate the market. This is attributed to several factors. The increasing demand for cannabis products in both medical and recreational sectors highlight the growing need for cannabis testing services among drug manufacturers and dispensaries. Additionally, global regulations are becoming stricter in the cannabis industry, making thorough product testing mandatory for market entry. Furthermore, cannabis drug manufacturers and dispensaries require a wide range of testing services, such as potency, purity, and contaminant testing, which are effectively fulfilled by cannabis testing laboratories.
Based on End user
Cannabis testing Laboratories leads the market
Cannabis Testing Laboratories will dominate the market because of increasing demand for cannabis testing services in both medical and recreational. Additionally, global regulations governing the cannabis industry require rigorous testing by licensed cannabis testing laboratories before products can be sold. Furthermore, these laboratories offer a wide range of testing services, including potency, purity, and contaminant testing, making them ideal for cannabis businesses as they can meet all their testing needs in one place, effectively and efficiently.
Based on Region
North America will lead the market
North America is expected to dominate the market due to widespread legalization of cannabis for both recreational and medical use in countries like Canada and the United States has created a strong demand for cannabis products and the necessary testing services. Additionally, governments in the region have implemented stricter regulations for the cannabis industry, making comprehensive testing mandatory before products are distributed. The presence of numerous cannabis testing laboratories in North America, offering a wide range of testing services, further solidifies the region's position as a center for cannabis testing solutions.
The global market is fragmented, including a diverse array of the presence of several key players. The industry is dominated by well-established companies with expertise in analytical instruments and testing technologies, but specialized cannabis testing laboratories like SC Labs and EVIO Inc. are also emerging as major players. Startups and niche players are introducing innovative technologies and methods, while regulatory compliance and quality assurance remain crucial. Collaborations, partnerships, and acquisitions are commonly used to expand market reach and service offerings.
The players in the global market include Agilent Technologies Inc., Shimadzu Scientific Instruments, Merck KGaA (Sigma Aldrich), Restek Corporation, PerkinElmer Inc., Danaher Corporation, Accelerated Technology Laboratories Inc., Steep Hill Halent Laboratories Inc., Digipath Inc., Pharmlabs LLC, Sartorius AG, AB Sciex Pte. Ltd among others.
Recent Market Developments
- August 2022: ACS Laboratory, a cannabis testing company headquartered in Florida, has introduced a comprehensive hemp compliance testing panel. This panel facilitates thorough examination of hemp samples, enabling the detection of 18 cannabinoids, 105 pesticides, 24 heavy metals, 55 residual solvents, 17 microorganisms, and all necessary mycotoxins at parts per billion levels. Additionally, it tests the moisture content, water activity, and terpenes of the samples.
- July 2022: Green Scientific Labs introduced cutting-edge technology specifically tailored to enhance the cannabis testing process. Developed exclusively for the cannabis industry, their innovative software offers a custom-designed solution.
Segmentation of the Global Market
- Product (Instruments, Consumables , Software )
- Test (Potency Testing, Terpene Profiling, Residual Solvent Analysis, Microbial Analysis, Pesticide Screening, Heavy Metal Testing, Other Services)
- Service (Cannabis Drug Manufacturers & Dispensaries, Cannabis Cultivators/Growers)
- End user (Cannabis testing Laboratories , Research Institutes , Others)
- Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa)
|Regions & Countries Covered
- North America - (U.S., Canada, Mexico)
- Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
- Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
- Latin America - (Brazil, Argentina, Rest Of Latin America)
- Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
- Agilent Technologies Inc.
- Shimadzu Scientific Instruments
- Merck KGaA (Sigma Aldrich)
- Restek Corporation
- PerkinElmer Inc.
- Danaher Corporation
- Accelerated Technology Laboratories Inc.
- Steep Hill Halent Laboratories Inc.
- Digipath Inc.
- Pharmlabs LLC
- Sartorius AG
- AB Sciex Pte. Ltd
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analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market
attractiveness analysis by segments and North America, company market share analysis, and COVID-19
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