by The cannabis testing market involves testing of medical and recreational cannabis for its composition, potency, and contamination. Cannabis testing is essential as it ensures the safety of consumers by identifying potentially harmful contaminants such as heavy metals, microbes, pesticides, and residual solvents. The tests also help to determine the cannabinoid and terpene profiles of cannabis to ensure label accuracy. The global cannabis testing market is estimated to be valued at US$ 1.72 Bn in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rapid Legalization of Cannabis: Legalization of cannabis for medical and recreational use in various countries is promoting the growth of the overall cannabis industry. According to the report, around 25 countries have now legalized medical cannabis and 19 countries have allowed recreational cannabis use. As cannabis testing is mandated by regulations in most regions, increasing legalization is directly enhancing the demand for cannabis testing services.
Rising Consumer Demand: Continued growth in consumer demand for cannabis products is also driving significant demand for cannabis testing. As consumers want tested and quality-assured products, companies are increasingly outsourcing cannabis testing to third-party laboratories. Various kinds of tests ensuring potency, purity, and consistency in the composition of cannabis products are being utilized to cater to dynamic consumer preferences.
SWOT Analysis
Strength: The cannabis testing market offers lucrative opportunities for equipment and reagent manufacturers. There is a strong demand for accurate and reliable testing equipment and technology to test cannabis for the presence of several chemical compounds, pesticides, and other contaminants. Stringent regulatory norms requiring pre-market and post-market testing of cannabis have boosted the demand for testing equipment and analytical services.
Weakness: However, lack of standardized regulatory guidelines and testing protocols across different states and countries poses challenges. The requirements for testing parameters, compounds to be tested, and frequency of testing vary significantly between different cannabis regulating agencies which increases the complexity.
Opportunity: Legalization of cannabis for medical and recreational use in more regions will expand the market potential over the coming years. Advancements in testing technologies such as portable testing devices, AI-based analysis, and biosensor-based detection methods can expedite the testing process and make it more affordable.
Threats: Presence of illegal cannabis market poses threat to the regulated cannabis industry. Lack of federal legalization in major markets like the US poses regulatory challenges. Competition from lower-cost alternative testing methods can also limit the revenue growth of established players.
Key Takeaways
The Global Cannabis Testing Market Demand is expected to witness high growth over the forecast period. The market is anticipated to reach a value of US$ 1.72 Bn by 2024, expanding at a strong CAGR of 7.2% during 2023 to 2030.
Regional analysis: North America currently dominates the global cannabis testing market, accounting for majority of the global revenue share. Countries like the US and Canada have legalized cannabis for medical and in some cases adult-use, which has boosted demand for regulatory-compliant testing. Europe is also anticipated to offer lucrative opportunities, driven by medical cannabis legalization in major countries. With many countries moving to legalize medical cannabis, the Asia Pacific region is expected to emerge as one of the fastest growing regional markets.
Key players: Key players operating in the cannabis testing market are Westrock Company, Keystone Folding Box Co, Cardinal Health Inc, Omnicell Inc., Jones Healthcare Group, Drug Package LLC, Manrex Limited, Medicine-on-time LLC, and Rx Systems Inc. These players offering diverse portfolio of equipment, consumables, and analytical testing services. Major players are focusing on acquiring regional players and expanding into new territories to benefit from the high growth opportunities.
Note:
Source: Coherent Market Insights, Public sources, Desk research
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
