Cannabis Testing Market Size, Trends, Growth Scenario and Analysis 2028
Posted by Prabha Mahajan on October 14th, 2022
According to our new research study on “Cannabis Testing Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Product, Type and End User,” the market is expected to reach US$ 2,960.20 million by 2028 from US$ 1,512.06 million in 2021. It is estimated to grow at a CAGR of 10.1% from 2021 to 2028.
Cannabis business are small due to stringent regulations for import and export. Companies that want to expand to other regions must establish cultivation, manufacturing and selling infrastructure in new location, or form a partnership with other company in the other state. For instance, in 2018, some of the multi-state operators acquired additional licensed operators in new locations to enhance its presence. Additionally, in May 2018, four cannabis industry giants Baker Technologies, Briteside, Sante Veritas Therapeutics and Sea Hunter have merged to develop a comprehensive, multinational business entity. Also, in January 2018, Aurora Cannabis acquired CanniMed Therapeutics for US 2 million. This powerful strategic acquisition will create a best-in-class cannabis company with enhanced operations across Canada and around the world. Thus, as drug laws and regulations become less stringent, it is widely believed that large pharmaceutical, food and beverage companies will enter the marketplace and serves great opportunities for the cannabis testing market to grow.
Increasing advances in analytical testing technologies and services are enabling to drive the industry and accelerate growth in drug development and medicine as well as regulatory guidance. Analytical instrumentation manufacturers are providing cannabis testing laboratories with sample preparation protocols, method development, and following good laboratory practices (GLP) to ensure state and federal laws are met. Some instrument manufacturers now offer dedicated instruments for cannabis potency testing, which include dedicated HPLC or UHPLC devices with hardware and methods optimized for compound isolation and quantitative analysis. Whereas some instrument vendors offer new, used, and refurbished equipment, along with other hardware components and service programs, for the purpose of cannabis testing. This holds the ability to service, upgrade, and customize equipment as methods and operations progress. For instance, Sage Analytics has launched their new, very unique, portable next generation cannabis potency testing Device Humboldt Mini in 2017. Therefore, the cannabis testing market is anticipated to grow due to advancements in cannabis testing equipments, in the forecast period.
In 2021, the analytical instruments segment held the largest share of the market by 50.96%, by product. Moreover, the consumables segment is estimated to grow at a CAGR of 8.0% from 2021 to 2028. The segment is expected to witness rapid growth owing to increasing use of the consumables as well as capital equipment for cannabis tests because of increasing use of cannabis for medical and recreational use. Also, rapid legalization of the medical cannabis in various parts of the world is likely to favor the growth of the market.
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Purpl Scientific; Orange Photonics, Inc; Agilent Technologies, Inc.; SHIMADZU CORPORATION; Merck KGaA; Restek Corporation; WATERS; CannaSafe Analytics; Accelerated Technology Laboratories, Inc.; and Digipath Inc are among the leading companies operating in the cannabis testing market. The companies are adopting inorganic and organic growth strategies to expand their global footprints and product portfolio to meet the rising demands for the cannabis testing. For instance, in January 2021, Agilent Technologies, Inc. announced that it has released MassHunter Workstation Plus 11.0, MassHunter BioConfirm, and MassHunter Networked Workstation 11.0 to comply with regulatory requirements from the EU EMEA and US FDA.
Legalization of Medical Cannabis
The US is anticipated to be the major country to use medical cannabis. 30 states of the United States of America have legalized the use of cannabis. These 30 states comprise of 60% of total population and have approved use of medical marijuana. This has become the driving force for the growth of cannabis testing marked in the entire North America region. At present, more than 8000 active licenses for cannabis businesses in the US. It is the only country with such number of market players. Europe is another region that has shown a decent growth rate for cannabis testing market. There has been an increase in the process of legalization of cannabis in European countries. In November 2018, Government of UK announced that medicinal cannabis is legal. The main force for growth in demand of cannabis is because of the use of cannabis in pesticides in Europe. Growing number of cannabis testing laboratories have fueled the demand for cannabis in the Europe region.
The Asia Pacific region projects a great demand for cannabis testing market. This is because the medical use of cannabis to heal patients of various disease for example chronic neuropathic pain, and any spinal injury. It also helps to deal with anorexia in HIV AIDS, which is a major challenge in this region. In December 2018, Thailand was the first country in Southeast Asia to legalize cannabis. There has been significant rise in investments in cannabis testing labs and recent law changes, which have led to acceptance of marijuana and cannabis.
Thus, due to growing legalization of cannabis, the cannabis testing market is expected to grow at rapid pace.
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About the AuthorPrabha Mahajan
Joined: September 26th, 2022
Articles Posted: 158
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