Cannabis Testing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Cannabis Testing Market is Segmented by Product and Software/Service (Analytical Instruments, Spectroscopy Instruments, Consumables, and Cannabis Testing Software and Services), Type (Potency Testing, Terpene Profiling, Residual Solvent Screening, Heavy Metal Testing, Mycotoxin Testing, and Other Types), End User (Laboratories, Cannabis Drug Manufacturers and Dispensaries, and Other End Users), and Geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America). The report offers the value (in USD million) for the above segments.

Cannabis Testing Market Snapshot

Cannabis Testing Market Overview
Study Period: 2018- 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 11.29 %

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Market Overview

The cannabis testing market was valued at USD 950.9 million in 2020, and it is expected to reach USD 1,801.51 million by 2026, registering a CAGR of 11.29% during the forecast period, 2021-2026.

The impact of COVID-19 on this industry is still being studied. On one hand, due to the shutdown of non-essential labs and testing facilities across the world in response to COVID-19 induced lockdowns, sales of cannabis testing equipment and services were a bit low. However, there has been positive news too. In April 2020, two Israel-based companies, Eybna and CannaSoul, collaborated to work on a patented cannabis terpene formulation for treating COVID-19. The companies are examining the efficacy of the cannabis terpene formulation NT-VRL, which is being used to treat a diverse range of inflammatory conditions, including the cytokine storm syndrome caused by COVID-19. Collaborations and increased research in this segment are likely to create demand for cannabis testing services to isolate novel compounds.

The major factor attributing to the growth of the market is the increasing approval for the use of medical cannabis. The legal usage of cannabis for medical purposes is steadily growing but varies across countries based on the possession, distribution, cultivation, and medical indications for its consumption. In addition, there is an increasing volume of research supporting the use of marijuana for medical purposes, while some studies demonstrated it to be a potential means of fighting the opioid epidemic. Government bodies of several countries across North America, Europe, and South America have legalized the use of medicinal marijuana completely or for limited usage in certain forms on a strict basis. Globally, there are about 40 countries that allow the legal use of marijuana that is distributed through prescription or limited use in ayurvedic medicines. The use of hemp-based products has seen favorable legislation since the passage of the United States Farm Bill in 2018. The bill allowed the broad-based cultivation of hemp while restricting it to pilot programs for studying market interest in hemp-derived products. The bill explicitly allowed the transfer of hemp-derived products across state lines for commercial or other purposes. Additionally, it puts no restrictions on the sale, transport, or possession of hemp-derived products, so long as those items are produced in a manner consistent with the law. In February 2021, lawmakers in the United States stated that they were planning new legislation that would end the federal prohibition on marijuana, which has been legalized to some degree by many states. These initiatives are likely to impact the demand for cannabis testing equipment in a positive manner. As cannabis-based products find increased legislation and come under the ambit of law, the demand for testing equipment is expected to increase during the study period.

Cannabis extracts are also used to treat many neurological and mental disorders. As the incidence of these disorders increases, along with the increase in use and production of cannabis, the cannabis testing market is also expected to grow during the forecast period. According to the World Health Organization, as of 2019, approximately 450 million people suffer from such conditions, placing mental disorders among the leading causes of ill-health and disability globally. Depression is the most common mental disorder. Globally, more than 264 million people of all ages suffer from depression. More women are affected by depression than men. Furthermore, growing awareness and adoption of software services in labs testing cannabis are other factors boosting the market. However, the high cost involved in cannabis testing instruments is a major drawback of the market growth.

Scope of the Report

As per the scope of the report, 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, etc. Cannabis testing refers to the analytical examination of cannabis to ensure its safety before human consumption. The cannabis testing market is segmented by product and software/service (analytical instruments, spectroscopy instruments, consumables, and cannabis testing software and services), type (potency testing, terpene profiling, residual solvent screening, heavy metal testing, mycotoxin testing, and other types), end user (laboratories, cannabis drug manufacturers and dispensaries, and other end users), and geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America). The report offers the value (in USD million) for the above segments.

By Product and Software/Service
Analytical Instruments
Spectroscopy Instruments
Consumables
Cannabis Testing Software and Services
By Type
Potency Testing
Terpene Profiling
Residual Solvent Screening
Heavy Metal Testing
Mycotoxin Testing
Other Types
By End User
Laboratories
Cannabis Drug Manufacturers and Dispensaries
Other End Users
Geography
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Middle-East and Africa
GCC
South Africa
Rest of Middle-East and Africa
South America
Brazil
Argentina
Rest of South America

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Key Market Trends

The Analytical Instruments Segment is Dominating the Market

The COVID-19 impact on analytical instruments has been positive. In general, due to the COVID-19 pandemic, there has been an increase in demand for analytical instruments as the production of equipment has increased significantly. Additionally, since cannabis extracts are being used for medical research, there has been sustained demand for these equipment even during the pandemic. Finally, many regions in the United States tagged cannabis dispensaries with the title of 'essential business'. Thus, these developments are expected to positively affect the market development.

Cannabis extracts need to be tested for heavy metals, potency, pesticides, terpene profile, residual solvents, moisture, microbial and fungal growth, and mycotoxins/aflatoxin. Testing makes sure that the products are safe, while concurrently generating revenues and a return on investment. Instruments like HPLC, gas chromatography, and liquid chromatography are used extensively. A study was conducted by researchers at the Suez Canal University in Egypt between 2015 and 2018, and the results were published in January 2019. The researchers studied some of the most widely used cannabis analytical techniques. These techniques ranged from liquid chromatography (LC) to gas chromatography (GC) and others.

Chromatography techniques are used extensively for contaminant reduction. They can be cost-effective while efficiently removing contaminants like fungicides, pesticides, herbicides, synergists, and heavy metals from cannabis and hemp extracts. Chromatography can also be used for reducing THC content in cannabis extracts. They are used to separate cannabinoids like CBD, THC, CBN, CBG, etc., from cannabis extracts. Many companies like Sorbent Technologies Inc. offer exclusive chromatography-based testing and extraction products. The company manufactures dedicated chromatographic products like Adsorbents, TLC Plates, Flash Cartridges, Flash Chromatographic Systems, FPLC Columns, HPLC Columns, GC Columns, Gel Filtration, SPE Cartridges, and Syringe Filters. Many other companies like Aurum Labs, WATERS, and CannaSafe Inc., among others, offer diversified products too. The presence of major companies is expected to boost the market growth as it leads to greater product availability.

Cannabis Testing Market Latest Trends

North America Dominates the Market and is Expected to do the Same in the Forecast Period

North America is expected to dominate the overall market throughout the forecast period. The market growth is due to factors such as the high prevalence of chronic diseases in the region, favorable legislation, and the presence of large companies.

According to UCB Canada Inc., a major biopharmaceutical company based in Canada, there were over 100,000 cases of Parkinson’s disease in 2018, with about 6,600 new cases of Parkinson’s diagnosed each year in Canada. The Parkinson's Foundation of the United States estimated that around 60,000 people are diagnosed with Parkinson’s Disease each year. Cannabis-derived CBD products are used to treat some symptoms of neurological disorders like Parkinson's. Such high incidence rates are expected to have a positive effect on the market growth. Canada was one of the first countries in the world to legalize the production and use of cannabis. In October 2019, it updated its laws to establish rules for the legal production and sale of three new classes of cannabis, which included edible cannabis, cannabis extracts, and cannabis topicals. These products need advanced purification and testing equipment for their extraction from cannabis sativa plants. Thus, regulatory changes like the one in Canada are expected to have a positive effect on the market development.

Furthermore, collaborations between major companies and an increase in the number of research efforts are some of the factors expected to drive the market growth. In this region, the United States is expected to have the maximum share due to supportive healthcare policies and the high number of patients.

Cannabis Testing Market Growth Rate By Region

Competitive Landscape

The cannabis testing market is moderately consolidated and consists of some major players. Some of the companies currently dominating the market are Agilent Technologies Inc., Shimadzu Scientific Instruments, Merck KGaA, Restek Corporation, PerkinElmer Inc., Danaher Corporation, Accelerated Technology Laboratories Inc., Steep Hill Halent Laboratories Inc., Digipath Inc., and Pharmlabs LLC.

Recent Developments

In March 2020, DigiPath Inc. announced that it had received a research and development license from Health Canada to cultivate cannabis.

In January 2020, PharmLabs LLC announced that it had received ISO 17025 accreditation for its testing products.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Legalization of Cannabis for Various Medical Purposes

      2. 4.2.2 Increasing Awareness regarding Cannabis for Treating Neurological Diseases

    3. 4.3 Market Restraints

      1. 4.3.1 High Cost of Analytical Instruments

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product and Software/Service

      1. 5.1.1 Analytical Instruments

      2. 5.1.2 Spectroscopy Instruments

      3. 5.1.3 Consumables

      4. 5.1.4 Cannabis Testing Software and Services

    2. 5.2 By Type

      1. 5.2.1 Potency Testing

      2. 5.2.2 Terpene Profiling

      3. 5.2.3 Residual Solvent Screening

      4. 5.2.4 Heavy Metal Testing

      5. 5.2.5 Mycotoxin Testing

      6. 5.2.6 Other Types

    3. 5.3 By End User

      1. 5.3.1 Laboratories

      2. 5.3.2 Cannabis Drug Manufacturers and Dispensaries

      3. 5.3.3 Other End Users

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Mexico

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 France

        4. 5.4.2.4 Italy

        5. 5.4.2.5 Spain

        6. 5.4.2.6 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Australia

        5. 5.4.3.5 South Korea

        6. 5.4.3.6 Rest of Asia-Pacific

      4. 5.4.4 Middle-East and Africa

        1. 5.4.4.1 GCC

        2. 5.4.4.2 South Africa

        3. 5.4.4.3 Rest of Middle-East and Africa

      5. 5.4.5 South America

        1. 5.4.5.1 Brazil

        2. 5.4.5.2 Argentina

        3. 5.4.5.3 Rest of South America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Agilent Technologies Inc.

      2. 6.1.2 Shimadzu Scientific Instruments

      3. 6.1.3 Merck KGaA (Sigma Aldrich)

      4. 6.1.4 Restek Corporation

      5. 6.1.5 PerkinElmer Inc.

      6. 6.1.6 Danaher Corporation

      7. 6.1.7 Accelerated Technology Laboratories Inc.

      8. 6.1.8 Steep Hill Halent Laboratories Inc.

      9. 6.1.9 Digipath Inc.

      10. 6.1.10 Pharmlabs LLC

      11. 6.1.11 Sartorius AG

      12. 6.1.12 AB Sciex Pte. Ltd

      13. 6.1.13 ENCORE Labs

      14. 6.1.14 Aurum Labs

      15. 6.1.15 WATERS

    2. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
**Competitive Landscape covers- Business Overview, Financials, Products and Strategies and Recent Developments

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Frequently Asked Questions

The Global Cannabis Testing Market market is studied from 2018 - 2026.

The Global Cannabis Testing Market is growing at a CAGR of 11.29% over the next 5 years.

The Global Cannabis Testing Market is valued at 950 Million USD in 2018.

The Global Cannabis Testing Market is valued at 1801 Million USD in 2026.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

Shimadzu Scientific Instruments., Merck KGaA (Sigma Aldrich), Restek Corporation, PerkinElmer Inc., Agilent Technologies, Inc are the major companies operating in Global Cannabis Testing Market.

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