Cannabis Testing Market to Grow by USD 2.05 Billion from 2024-2028, Driven by Rising Medical Cannabis Use, Report Highlights AI's Role in Market Transformation - Technavio

NEW YORK, Aug. 27, 2024 /PRNewswire/ -- Report with the AI impact on market trends- The global cannabis testing market size is estimated to grow by USD 2.04 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of about 15.23%  during the forecast period. Increasing use of cannabis for medical purposes is driving market growth, with a trend towards emergence of luxury cannabis products. However, high cost of analytical products  poses a challenge. Key market players include 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., and Waters Corp..

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Market Driver

In the cannabis market, there is a growing trend towards luxury cannabis products, particularly edibles. These products offer consumers controlled and monitored quantities of cannabis, allowing them to enjoy therapeutic benefits without the negative effects of smoking. Companies like Madame Munchie, Defonce Chocolates, and Kikoko Teas are leading this trend, producing a range of edible items such as macarons, chocolates, and teas. Madame Munchie's macarons contain 20 mg of THC, while Defonce Chocolates offer various THC quantities and flavors. Kikoko Teas provide specialized cannabis teas in four flavors, each with a distinct purpose. As consumers seek medical and recreational cannabis options, the demand for these luxury edibles is increasing. To ensure product safety, vendors must invest in cannabis testing products, making the cannabis testing market a significant growth area during the forecast period. 

The Cannabis testing market is witnessing significant growth due to the increasing demand for high-quality testing products and services. Analytical laboratories play a crucial role in ensuring product safety and potency by conducting tests on various cannabis matrices like transdermal patches, e-liquids, and flower. The testing procedure involves identifying contaminants such as fungus, molds, insecticides, and mycotoxins. Strategic alliances between laboratories and cannabis cultivators/growers and drug manufacturers ensure accurate testing results. The Farm Bill legalizing hemp cultivation has led to an influx of new players in the market. Potency testing services for cannabinoids like Cannabidiol (CBD) and Tetrahydrocannabinol (THC) are in high demand. Laboratories use advanced testing equipment like Gas Chromatography, HPLC, and LIMS to provide reliable results. High costs remain a challenge, but the growing need for medical cannabis for conditions like nausea, chemotherapy, AIDS, and multiple sclerosis, as well as glaucoma, justify the investment. Key players include Botanacor Laboratories, Agricor Laboratories, and Green Leaf Lab. The industry also faces challenges from contamination cases and the need for regulatory compliance. 

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Market Challenges

• The cannabis testing market consists of vendors such as Agilent Technologies, Merck, Perkin Elmer, Shimadzu, and Thermo Fisher Scientific, providing high-quality analytical products. However, the high cost of these products poses a significant challenge for cannabis testing laboratories, particularly medium and small-scale ones. These laboratories have limited budgets for testing equipment, which are often invested in research and development (R&D) experiments of cannabis strains. Affordability is a major concern, especially in developing countries, where emerging economies have a high number of small and medium-scale laboratories. Traditionally, researchers have collaborated with external laboratories or university core facilities for proteomic research due to the high cost of mass spectrometers. However, this arrangement is not error-free, and results could be misinterpreted. A basic model of a mass spectrometer with an attached or in-built liquid handling system costs around USD100,000, and customizations can significantly increase the cost. Small laboratories, therefore, may only have basic testing equipment or outsource the entire testing process, which could negatively impact the adoption of cannabis testing products and hinder market growth during the forecast period.
• The cannabis testing market faces several challenges in providing accurate and reliable results for medical and recreational cannabis products. One major challenge is the use of Laboratory Information Management Systems (LIMS) to manage and analyze data from various analytical testing methods like chromatography, spectroscopy, and PCR systems. High costs associated with these analytical instruments and testing services remain a concern. Medical cannabis users, including AIDS, MS, and glaucoma patients, require potency testing, terpene profiling, and contaminant screening for effective treatment. Chemotherapy patients dealing with nausea and chronic pain seek cannabis products free from contaminants like pesticides, heavy metals, and residual solvents. Cannabis testing labs must adhere to regulatory standards for consumer safety and therapeutic potential. Shelf life, microbial analysis, and testing protocols are essential for ensuring consistent product quality. As the market evolves, novel equipment, software, and testing solutions are required to meet the growing demand for cannabis testing services and products for tinctures, salves, edibles, vape oils, and raw plant materials.

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Segment Overview 

This cannabis testing market report extensively covers market segmentation by

1. Product 
• 1.1 Consumables
• 1.2 Instruments
• 1.3 Software
2. End-user 
• 2.1 Cannabis cultivators/growers
• 2.2 Cannabis drug manufacturers
• 2.3 Others
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 Asia
• 3.4 Rest of World (ROW)

1.1 Consumables-  The cannabis testing market is experiencing significant growth due to increasing regulations and consumer demand for safe and consistent products. Laboratories provide services such as potency testing, contaminant screening, and terpene profiling to ensure product quality and safety. Compliance with industry standards like ISO 17294-3 and OSHA regulations is essential. Market leaders invest in advanced technologies like mass spectrometry and gas chromatography to meet the growing demand for accurate and efficient testing solutions.

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Research Analysis

The Cannabis testing market is experiencing significant growth due to the increasing demand for ensuring the safety and quality of medical and recreational cannabis products. Laboratories use LIMS (Laboratory Information Management Systems) to streamline testing processes, reducing costs and improving efficiency. Medical cannabis patients, including those with nausea from chemotherapy, AIDS, multiple sclerosis, and glaucoma, rely on cannabis for its therapeutic potential. However, high testing costs remain a challenge. Potency testing services, such as Gas Chromatography, are essential for determining cannabinoid profiles, including Cannabidiol (CBD). Contaminants, including microbes, pesticides, heavy metals, residual solvents, insecticides, and mycotoxins, pose health risks and require rigorous testing. Shelf life is another critical factor, as cannabis products can degrade over time. The Farm Bill and changing regulations are driving the need for more laboratories and laboratory equipment, as well as a range of professional services.

Market Research Overview

The cannabis testing market is experiencing significant growth due to the increasing demand for medical cannabis and stringent regulatory requirements. Analytical testing plays a crucial role in ensuring product safety and quality, with various analytical instruments such as chromatography, spectroscopy, and PCR systems used for potency testing, terpene profiling, pesticide screening, residual solvent analysis, heavy metal testing, and microbial analysis. These tests are essential for identifying contaminants like molds, fungus, insecticides, mycotoxins, and other harmful substances. Cannabis testing labs offer cannabis testing services and products for cannabis cultivators/growers, drug manufacturers, and consumers. They provide testing solutions for various cannabis matrices, including tinctures, salves, edibles, vape oils, raw plant materials, transdermal patches, e-liquids, and testing procedures. The therapeutic potential of cannabis is vast, with applications in treating medical conditions such as chemotherapy-induced nausea, chronic pain, and prescription medications for AIDS patients, multiple sclerosis patients, and glaucoma patients. However, the high costs associated with testing and the need for novel equipment and software make it a complex industry. Strategic alliances between laboratories and companies like Medicinal Genomics and regulatory bodies like the Farm Bill are essential for maintaining regulatory standards and ensuring consumer safety. The testing market is continually evolving, with new testing procedures, testing equipment, and testing services being developed to meet the growing demand.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Consumables
• Instruments
• Software
• End-user
• Cannabis Cultivators/growers
• Cannabis Drug Manufacturers
• Others
• Geography
• North America
• Europe
• Asia
• Rest Of World (ROW)

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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