by Cannabis testing services ensure the quality and safety of cannabis and cannabis-derived products. Cannabis testing helps identify the presence of toxins, pesticides, microbiological analysis, heavy metals, and verifies labeling accuracy for cannabinoids like THC and CBD. This is essential to meet the legal compliance standards and earn consumer confidence. The growing cannabis industry globally relies on cannabis testing at various stages of cultivation and manufacturing to deliver contaminant-free products. The global legal cannabis market reached $21 billion in 2021 and is projected to grow substantially in the coming years. As the demand for legal cannabis rises, testing of cannabis and its derivatives has become imperative.
The global Cannabis Testing Services Market is estimated to be valued at US$ 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 key trends:
The cannabis testing services market is witnessing lucrative growth opportunities owing to increasing legalization of medical and recreational cannabis globally. Major cannabis testing trends include:
– Growing demand for residual solvent testing: With the rising cannabis processing into oils, edibles and other products, residual solvent testing ensures no hazardous solvents are left behind during manufacturing.
– Focus on terpene profiling: Terpenes give cannabis its unique flavors and aromas. Testing services now offer detailed terpene profiling to verify labeling claims.
– Mobile cannabis testing units: To improve testing access and turnaround time, some labs have launched mobile testing units that can perform on-site analysis of cannabis crops and products.
– Genetic data mapping: As the industry matures, genetic data mapping through testing helps track cannabis strains and verify labeling compliance. This boosts brand trust.
Porter’s Analysis
Threat of new entrants: The high capital requirements and strong presence of established players make the entry of new players difficult in this market. However, rapid market growth offers opportunities for new entrants.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of multiple testing service providers. Buyers can negotiate on price and demand better service quality.
Bargaining power of suppliers: The suppliers of products and services required for cannabis testing have moderate to high bargaining power. Suppliers can influence prices due to the high demand for testing instruments and materials.
Threat of new substitutes: There is a low threat of substitution as cannabis testing helps ensure the safety, potency, and purity of products as mandated by regulatory standards.
Competitive rivalry: The competition is high among the top players to sustain and gain market share through new testing techniques, certifications, and price wars.
Key Takeaways
The Global Cannabis Testing Services Market Demand is expected to witness high growth at a CAGR of 5.3% during the forecast period of 2023 to 2030.
Regional analysis – North America dominated the market and is expected to grow at a fastest pace due to the increasing legalization of cannabis in the US and Canada. Key players – Key players operating in the Cannabis Testing Services are B. Braun Melsungen AG, Fagron NV, PharmLabs, and Merck KGaA.
Key players operating in the Cannabis Testing Services are B. Braun Melsungen AG, Fagron NV, PharmLabs, and Merck KGaA. B. Braun Melsungen AG offers wide range of testing equipment and consumables for cannabis testing. Fagron NV provides various cannabis testing services including microbial screening testing. PharmLabs offers chromatography testing methods and provides third party analytical testing. Merck KGaA offers variety of chromatography and spectrometry testing instruments used for cannabis testing.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
