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Cannabis Testing Market worth over $11.6bn by 2027

  • Published Date: October 28, 2021

Cannabis Testing Market size is set to surpass USD 11.6 billion by 2027, according to a new research report by Global Market Insights Inc.
 

Market growth is attributed to the increasing number of testing laboratories in developed countries. Additionally, growing awareness programs such as conferences, symposia and workshops in developed regions to educate the people and government regarding medical use of cannabis will boost the market expansion. Also, need for more testing laboratories to meet the demand for growing cannabis cultivators is further anticipated to drive the market progression.
 

Growing legalization pertaining to the use of cannabis across the globe will spur the market value

Increasing use of cannabis for medical purposes have led to legalization of cannabis in various countries across the globe. For instance, currently, more than 30 countries across the globe have legalized the use of cannabis for medical treatment. Also, adult-use of cannabis have been legalized in few states and provinces of U.S. and Canada, respectively. This will provide new growth avenues for testing laboratories, thus leading to huge development of industry during the forecast timeframe.
 

Furthermore, various government organizations and private players are recognizing the commercial and social importance of legalized medical cannabis. Similarly, several insurance companies are also providing reimbursement for prescription of medical cannabis in countries that have legalized the use of medical cannabis.
 

High cost of setting up cannabis testing facility will hamper the market revenue to certain extent

Setting-up a cannabis testing facility is difficult owing to high cost of laboratory equipment. The average cost of one high performance liquid chromatography (HPLC) instrument ranges from USD 30,000 to USD 35,000. The cost of consumables such as chromatography column and various HPLC-grade solvents is also extremely high. Moreover, high maintenance cost of these sophisticated equipment and instruments will further hinder the industry growth. Also, gaining accreditation from various government bodies also further adds to the overall cost. Therefore, high cost of testing equipment will lead to increase in the overall cost of each test, that will have a negative impact on the industry expansion of cannabis testing.

 

Browse key industry insights spread across 180 pages with 255 market data tables & 12 figures & charts from the report, “Cannabis Testing Market Size By Technology (Chromatography {Liquid Chromatography, Gas Chromatography}, Spectroscopy {Mass Spectrometry, Atomic Spectroscopy}), By Test Type (Potency Testing, Pesticide Screening, Residual Solvent Screening, Heavy Metal Testing, Terpene Testing, Mycotoxin Testing), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:  
https://www.gminsights.com/industry-analysis/cannabis-testing-market
  
 

Wide array of application & usage of spectroscopy along with its advantages will foster the market demand

Spectroscopy segment is expected to reach USD 3.5 billion by 2027. Near infrared spectroscopy is a favorable method for cannabis analysis. The preference of spectroscopy is increasing as the method is five-to-ten times quicker than gas chromatography–mass spectrometry (GC-MS). Additionally, several advantages associated with spectroscopy such as low cost per analysis than GC-MS, accuracy, and no solvents used in extraction of sample will increase its adoption rate. Furthermore, mass spectrometers have wide array of applications in cannabis testing such as pesticide and heavy metal testing.
 

Potency testing is one the essential tests in cannabis industry

Potency testing segment was valued at 351.4 million in 2020 and is slated to expand at 21.5% growth rate through 2027. Potency testing is also required to determine the correct dosing of medical cannabis for patients. The testing is mainly used to measure the concentration of cannabinoids in samples. Cannabinoids potency screening is mainly employed by quality control laboratories and chemists. The potency research is essential for precise labeling of medical products.
 

Increasing legalization of cannabis in major European countries to stimulate the regional growth

Europe cannabis testing market is estimated to attain a CAGR of 40.4% till 2027. Key factors will drive the market for cannabis testing services are increasing the legalization of cannabis in major European countries and increasing usage of the plant in drug development and research. In addition, the market for cannabis products is strictly regulated in the region, as most of the countries have banned products containing more than 0.3% THC. Moreover, key leaders are introducing innovative technologies in the region and are exploring the untapped opportunities, thereby positively impacting the European industry progression.
 

Companies undertake various growth strategies to strengthen their business portfolio and revenue

Few of the prominent players involved in the market are Anandia Labs, Anresco, CannaSafe Analytics, CW Analytical Laboratories, Digipath, Eirlab, EVIO, Phytovista Laboratories, Pure Analytics, SC Labs, and Steep Hill. The industry participants emphasize on acquisitions, mergers & partnerships as well as new service developments to strengthen their position in the market.
 

Authors: Sumant Ugalmugle, Rupali Swain