The global cannabis testing service market size was valued at USD 1.18 billion in 2020 and is projected to surpass USD 3.45 billion by 2028, expanding at a significant CAGR during the forecast period, 2021–2028. The growing market of cannabis service is attributed to the rising demand for cannabis products for medical applications and increasing issues related to contamination cases such as molds, fungus, pesticides, and heavy metals from the soil affecting cannabis plants.
Cannabis testing deals with a type of screening process to detect the presence of harmful and non-hygienic compounds or bacteria that contaminate the cannabis plants. In general, these plants are exposed to the risk of various contaminations due to the development of fungus, bacteria, and molds from the soil during the cultivation. Moreover, using pesticides is one of the key factors causing the contamination and various testing are conducted to detect the levels of the presence of harmful compounds in the plants. Rapid growth of the cannabis market can be attributed to the rising medical applications of cannabis for several disease treatment and development of drugs. For various medical applications, for example, ranging from pain management to reducing stress for patients having severe pain and psychological related disorders, cannabis has come into play a crucial role.
The outbreak of COVID-19 pandemic has affected the market as it forced to shut the production units of several cannabis testing devices. Moreover, low demand for instruments, consumables, and reagents, as along with the global supply chain interruptions and trade restrictions have harmed the cannabis testing services market.
The report on the global cannabis testing services market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes |
Details |
Report Title |
Cannabis Testing Services Market- Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
Base Year |
2020 |
Historic Data |
2018–2019 |
Forecast Period |
2021–2028 |
Segmentation |
Types (Terpene Profiling, Pesticide Screening, Residual Solvent Screening, Potency Testing, Heavy Metal Testing, Microscopy Testing, and Others) and End-users (Cannabis Cultivators/Growers, Cannabis Drug Manufacturers, and Others) |
Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast |
Key Players Covered in the Report |
Saskatchewan Research Council (SRC); SC Labs; Steep Hill, Inc.; SGS Canada Inc.; CW ANALYTICAL; PharmLabs; and GreenLeaf Lab. |
On the basis of types, the global cannabis testing services is segmented into terpene profiling, pesticide screening, residual solvent screening, potency testing, heavy metal testing, microscopy testing, and others. The potency testing segment is anticipated to hold a major market share in the coming years owing to wide adoption of techniques such as high performance liquid chromatography and gas chromatography for examining the samples. Moreover, the testing type is also widely adopted for testing the potency of cannabidol (CBD) and tetrahydrocannabinol (THC) present in cannabis plants. This factor is expected to boost the segment growth. Furthermore, potency testing service ensures that consumers are well informed about the standards of the products, which is further anticipated to propel the segment expansion during the forecast period.
On the other hand, the microscopy testing segment is expected to register a high CAGR during the forecast period due to rising demand for quality checks for cannabinoids to make sure accurate labeling of products in medical and recreational markets.
Based on end-users, the market is categorized as cannabis cultivators/growers, cannabis drug manufacturers, and others. The Cannabis cultivators/growers is expected to capture a large market share in the coming years owing to the emerging wide collaborating of cannabis cultivators with the professional testing laboratories and research centers. In various countries, governments have imposed stricter rules and regulations on the THC content found in cannabis products. However, cultivators got to sell different sort of plants supported their CBD and THC content to producers and distributors at different rates. These are the major factors contributing to the expansion of the segment.
On the one hand, the cannabis drug manufacturers segment is anticipated to boost up its market share during the forecast period. The increasing usage of marijuana as a medicinal treatment as well as expansion in cannabis-based clinical trials by prominent pharmaceutical companies such as Sanofi, Solvay Pharmaceuticals, and Pfizer, are driving the segment growth. Sanofi, for example, has done thirty-eight cannabis-based clinical trials while Solvay Pharmaceuticals has conducted seven and Pfizer has conducted four.
In terms of regions, the global cannabis testing services market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market, accounting for a significant growth rate in the coming years. The regional market growth can be attributed to the existence of a significant number of cultivators as well as an increase in the number of testing laboratories in the region. Favorable governments' policies for the use of cannabis products for several medical applications and gradual expansion of the regional marijuana producers are key factors contributing the market growth in this region.
The market of Europe, on the other hand, is estimated to develop at a fast growth rate during the forecast period. The stricter regulations for cannabis testing and rising usage of the plants for several medicinal research and development in prominent European-based countries are anticipated to propel the regional market expansion.
Segments Covered in the Report
The global cannabis testing services market has been segmented on the basis of
Types
End-users
Regions
Key Players
Key players competing in cannabis service testing market are Saskatchewan Research Council (SRC); SC Labs; Steep Hill, Inc.; SGS Canada Inc.; CW ANALYTICAL; PharmLabs; and GreenLeaf Lab.
Some of these companies are expanding their geographical reach and obtaining certifications so that they can add more values to their offerings and product portfolio. Green Leaf Lap had obtained ORELAP accreditation in in September 2016 and in March 2020. Oregon was among the first cannabis service testing companies that received license ISO/IEC 17025:2017 for the development activities of cannabis plants for various healthcare purposes. Medicinal Genomics Corp. (MGC) and Eurofins Scientific entered into partnership in December 2019 and introduced advanced version of Single Nucleotide Polymorphism (SNP) chip, which helps in advancement of cannabis genotyping, pathogen testing, and breeding. Such innovations are propelling the growth of the market and the market competition.
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