Cannabis Testing Services Market is Anticipated to Touch a CAGR of 15.2% During the Forecast Period (2023-2031).Cannabis testing services involves evaluating the active ingredients and essential chemical compounds in the specified cannabis extract. In the past years, the production of cannabis-derived treatments and their constituents is growing swiftly. Extensive research and development activities are carried out to treat numerous diseases, including cannabis anxiety, cancer, multiple sclerosis, and post-traumatic stress disorder. Additionally, the U.S.'s successful initiative that supports drug researchers in researching marijuana (or its components) by supervised clinical trials, which is provided by the Food and Drug Administration (FDA) in order to show the feasibility for safe and efficient use of marijuana. The cannabis testing services market was valued at USD 1, 120million in 2019 and is expected to grow with a CAGR of 15.2%.
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The surge in technical developments, combined with increased expenditure in research and development activities, is driving the demand for cannabis testing. In 2017, the National Institute of Health (NIH) invested about USD 140 million to support more than 300 research projects on cannabinoids. Escalating investment in R&D activities for exploring new medical applications of cannabis will spur cannabis testing industry growth in the future. Key players in the industry are focusing on establishing new state-of-the-art cannabis research laboratories in key regions to offer various cannabis testing services. For instance, in April 2018, Gala Medicinal, Inc., in compliance with Medical Marijuana Control and Safety Act, announced plans to develop the first state-of-the-art research facility that would fulfill the current ISO standards established by the City of Long Beach and the State of California.
In December 2018, Gala Pharmaceutical California Inc., a subsidiary of Gala Pharmaceutical, Inc., received a Temporary License from the State of California to construct its flagship cannabis testing facility in Long Beach, California, the U.S. In addition, increasing focus to meet the growing needs of hemp and cannabis cultivators will significantly increase the number of cannabis testing laboratory setups globally.
The rising regulation of medicinal cannabis across different nations is also a vital factor affecting the development of the cannabis testing services industry. Farm Bill, for example, was proposed in 2018 to legalize hemp farming in the U.S. Many countries in Europe and Asia are projected to legalize medicinal cannabis for the growing population of patients.
Medical cannabis is proven to be effective in various medical applications, such as reducing nausea caused due to chemotherapy, stimulating appetite in AIDS patients, controlling muscular spasms in multiple sclerosis patients, and reducing intraocular pressure in patients with glaucoma. Increasing use of cannabis for medical purposes and its potential benefits have led to the legalization of cannabis in various countries across the globe. For instance, currently, more than 30 countries have legalized the use of cannabis for medical treatment, which includes Australia, Canada, North Korea, Spain, Portugal, the U.K., the Netherlands, Germany, Italy, Israel, and Brazil. In addition, 25 states have legalized medicinal cannabis in the U.S.; and four states, including Colorado, Washington, Oregon, and Alaska, have legalized cannabis for medical and recreational use.
Growing Number of Cannabis Producers and Rising Quality Standards for Cannabinoids to Drive the Segment Growth
The potency study segment is expected to grow with the fastest CAGR on account of the growing number of cannabis producers, resulting in strong competition to supply the consumer public with a higher standard of medicinal cannabis. Many weed farmers rely on cannabis cultivation with a high tetrahydrocannabinol acid (THCA) concentration that can be calculated by potency research. In addition, potency testing is often required to assess patients' proper doses of medicinal cannabis. Apart from this, the growing quality standards for cannabinoids to ensure correct labeling of goods in the medicinal and recreational sectors drive the segment growth. In addition, the potency testing service keeps customers well informed about product quality.
The cannabis drug manufacturers segment, on the other hand, is projected to witness considerable growth on account of the increasing popularity of marijuana and the surging number of clinical trials by pharmaceutical firms, such as Sanofi, Solvay Pharmaceuticals, and Pfizer. Sanofi, for example, registered 38 clinical trials as of June 2018, Solvay Pharmaceuticals registered seven, and Pfizer registered four clinical trials focused on cannabis.
The U.S. to Spearhead North America's Cannabis Testing Services Market Growth
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The U.S. .cannabis testing services market is currently dominating the North American market and is projected to maintain its dominance, owing to the legalization of cannabis. According to the governing 2019 report, 11 states have legalized marijuana for recreational use, and 22 states have legalized medical use in the country. In addition, rising numbers of research labs and growing marijuana cultivators add fuel to the market growth. For instance, in December 2019, Eurofins Scientific collaborated with the U.S.-based bioanalytical research business, Medicinal Genomics Corp. (MGC), to launch the next-generation single nucleotide polymorphism (SNP) tablet. It would be of interest to advanced genotyping, reproduction, and pathogen research of cannabis.
The need for scientific testing of cannabis has risen in recent years to ensure its safety before human use, as medicinal cannabis is being legalized in this country. According to market experts, there are reportedly 250 cannabis research laboratories in the U.S. These developments are reflective of anticipated increases in demand in the near future for analytical instrumentation, applications, and cannabis research services. Furthermore, stringent regulatory needs executed by authorities to safeguard superior quality products will propel the market growth.
Germany and Macedonia to Be the Forerunners of Europe's Market Growth
Europe's cannabis testing services market is largely driven by the European government financing cannabis education for physicians and the growing need for quality cannabis research activities. In Macedonia, where the medical system is at a changing and revitalizing stage, cannabis offers great opportunities. Now cannabis can be administered in the country by local medical experts. In light of this, Macedonian cannabis advocates partnered with local authorities and developed the cannabis medical training program to help doctors and patients. In 2016, numerous medical researchers were welcomed to Macedonia about the use of medicine in clinical practice to advise local health care providers. The program was conducted in Skopje and sponsored and subsidized by the Ministry of Health of Macedonia.
Germany's cannabis testing services market is also projected to demonstrate a healthy growth rate over the predicted period. High growth is due to new regulations on medical cannabis and increased production licensing since March 2017. In addition, the growing demand for medical cannabis amongst patients is burgeoning the number of laboratories offering cannabis research services, thus encouraging potential industry expansion. Recently, Sativa Investments PLC acquired PhytoVista Laboratories Ltd., a U.K-based laboratory researching cannabis extracts and hemp products, in July 2018.
|Market Size||USD in Billion By 2031|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
|Segments Covered||by Service (Potency Testing, Pesticide Testing), End-User (Cannabis Drug Manufacturers)|
|Geographies Covered||North America, Europe, Asia-Pacific, LAME and Rest of the World|
|Key Companies Profiled/Vendors||, Anandia Labs, Anresco, CW Analytical Laboratories, CannaSafe Analytics, Digipath, EVIO, Phytovista Laboratories, Steep Hill, Pure Analytics, Eirlab, SC Labs|
|Key Market Opportunities||Growing Prevalence Of Healthcare It Industry Helps To Grow Cannabis Testing Services Market Share|