by The cannabis testing services market involves testing services that check the quality and potency of various cannabis products such as marijuana and hemp. Cannabis testing provides analysis of cannabinoid profile, microbial screening, residual solvent screening, pesticide screening, heavy metal screening, and terpene analysis. These tests help ensure the safety and efficacy of cannabis products being sold in medical as well as recreational markets. With legalization of both medical and recreational use of cannabis in various regions, the market for cannabis testing is growing steadily. The global cannabis testing services market is estimated to be valued at US$ 1881.19 Mn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
The growing legalization of cannabis across regions is one of the major drivers propelling the cannabis testing services market growth. As more states and countries legalize medical as well as recreational use of cannabis, there is an increasing need for testing services to ensure product safety and quality. For instance, in 2018 Canada became the second country after Uruguay to legalize recreational use of cannabis. Similarly, states like California, Nevada, Massachusetts, Maine, and Michigan in the US have legalized recreational use of cannabis. This growing acceptance and legalization of cannabis is fueling the demand for testing services. Another major factor driving the market is safety concerns regarding contaminants in cannabis products. Various reports have indicated presence of residues such as heavy metals, pesticides, microbials in cannabis products which can pose health risks. Therefore, stringent regulations are being imposed on cannabis product manufacturers to conduct comprehensive testing and get the products certified before being sold. This is further propelling the need for cannabis testing services.
Segment Analysis
The global cannabis testing services market is dominated by the potency testing sub-segment. Cannabis potency testing measures the amount or concentration of tetrahydrocannabinol (THC), cannabidiol (CBD) and other cannabinoids in cannabis products. It is crucial to understand and quantify the potency of medical and recreational cannabis to ensure consumer safety and product efficacy. Growing usage of medical cannabis and legalization of recreational cannabis in many countries has increased the need for potency testing.
PEST Analysis
Political: Legalization of medical and recreational cannabis in countries like the U.S, Canada and some parts of Europe has created an enabling environment for growth of the testing services market. However, varying regulations across jurisdictions can hamper market growth.
Economic: Rising disposable incomes and improved access to affordable cannabis products is expected to drive the demand for testing. However, high initial costs associated with establishment of testing infrastructure can deter new entrants.
Social: Increasing social acceptance of cannabis for medical use has boosted its demand. However, stigma still attached to its usage for recreational purposes in some cultures may act as a restraint.
Technological: Adoption of advanced analytical techniques like chromatography and spectroscopy has improved accuracy and reliability of test results. Ongoing R&D also aims to develop portable testing devices for point-of-sale applications.
Key Takeaways
The Global Cannabis Testing Services Market Demand is expected to witness high growth over the forecast period of 2023 to 2030 supported by increasing legalization of medical and recreational cannabis across countries.
Regional analysis: The North America region currently dominates the market led by the U.S and Canada owing to widespread cannabis legalization and a large patient base. Europe is also growing rapidly due to increasing medicinal cannabis adoption in countries like Germany.
Key players: Key players operating in the cannabis testing services market include B. Braun Melsungen AG, Fagron NV, Pharmaceutical Product Development, LLC (PPD), SGS Canada Inc., CannaSafe Analytics, EVIO Inc., Floris Partners, ANANDA Scientific and Encore Labs. These players are focusing on developing a wide range of potency and contaminant testing solutions.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
