June 18, 2024

Cannabis Testing Services Segment Is The Largest Segment Driving The Growth Of The Cannabis Testing Services Market

Market Overview:

Cannabis testing services help regulate the cannabis industry by ensuring product safety and quality. Product testing identifies harmful contaminants, determines accurate cannabinoid profiles and serves as a means of consumer protection.

Market key trends:

One of the key trends in the cannabis testing services market is the growing demand for fast and portable testing kits and devices. Portable kits help cannabusiness owners and consumers test cannabis products on the spot for potency, contaminants etc. without having to send samples to an external lab. This has increased testing adoption. Technological advancements are also allowing for more accurate and comprehensive analysis in lesser time which is fueling the cannabis testing services market growth. Strict regulatory frameworks requiring cannabis testing before products hit the shelves further supports the market expansion.

The global Cannabis Testing Services Market Size is estimated to be valued at US$ 1881.19 Mn in 2023 and is expected to exhibit a CAGR of 13.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

The global cannabis testing services market is expected to witness high growth due to the increasing legalization of cannabis across countries for medical and recreational purposes. Several countries and states in the US have legalized cannabis due to growing evidence of its medical use in providing relief from health conditions like chronic pain, depression, epilepsy, and cancer. This has boosted the demand for cannabis testing services to ensure the safety and potency of cannabis products.

SWOT Analysis

Strength: Growing legalization of medical cannabis across countries has increased the demand for quality testing of cannabis products.
Weakness: Presence of illegal cannabis market operating without any testing can hinder the growth of regulated cannabis testing services market.
Opportunity: Emerging cannabis-derived products like CBD offers significant growth opportunities for cannabis testing service providers to test new products.
Threats: Stringent regulatory frameworks and testing standards across countries can increase business costs for cannabis testing service providers.

Key Takeaways

The global cannabis testing services market size was valued at US$ 1,881.19 Mn in 2023 and is expected to reach US$ 7,874.43 Mn by 2030, expanding at a CAGR of 13.% during the forecast period. The market is primarily driven by the growing legalization of medical cannabis along with the increasing research on its medical use. North America dominated the cannabis testing services market in 2023 owing to the early legalization of cannabis in countries like Canada and growing number of states in the U.S. allowing medical and recreational use. Key players operating in the cannabis testing services market are Thermo Fisher Scientific Inc., Merck KGaA, Shimadzu Corporation, PerkinElmer, Inc., Steep Hill Labs, Inc.

The North America region is expected to continue dominating the global cannabis testing services market during the forecast period. This is attributed to factors like increasing research funding for cannabis, growing product innovations, and rising number of testing laboratories in the U.S. and Canada. According to a report, the number of cannabis testing labs in the US is projected to grow from 280 in 2018 to 600 by 2023.

Key players operating in the cannabis testing services market are Thermo Fisher Scientific Inc., Merck KGaA, Shimadzu Corporation, PerkinElmer, Inc., Steep Hill Labs, Inc., CB Scientific Inc., Alpha-CAT, Orange Photonics, Inc., Gobi Labs, MyDx, Inc., SC Laboratories Inc., Restek Corporation, Waters Corporation, PharmLabs LLC, Eurofins Scientific, EVIO Labs, ProVerde Laboratories, Inc., Praxis Laboratory, Atlantic Test Labs, Inc., American Clinical Solutions, LLC., MCR Labs, Cannalysis, Aurum  Laboratory, LLC, The Niva Labs, Encore Labs, SGS Canada Inc., Agricore Laboratories, and California Cannabis Testing Labs.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it