Market Overview:
Cannabis testing services analyzes various compounds present in cannabis and cannabis-based products. It measures compounds like tetrahydrocannabinol (THC), terpenes, flavonoids, and cannabidiol. The services include potency testing, pesticide screening, residual solvent analysis, heavy metal testing, microbiological analysis, and terpene profiling. Accurate detection and quantification of these compounds are important for product quality, consistency, and regulatory compliance. Furthermore, cannabis testing ensures the safe consumption of cannabis products by detecting contaminants like toxins, pesticides, and microbes that could pose health risks.
Market key trends:
Technological advancements are expected to drive the growth of the market during the forecast period. New technologies like hyperspectral imaging, chromatography, and spectroscopy are enhancing the capability, accuracy, and speed of cannabis testing. Hyperspectral imaging enables non-destructive analysis of cannabis samples. Chromatography techniques like gas chromatography (GC) and liquid chromatography (LC) precisely separate and quantify compounds in cannabis matrices. Gas chromatography-mass spectrometry (GC-MS) and liquid chromatography-mass spectrometry (LC-MS) are the most common analytical techniques used in cannabis testing laboratories. Their high resolution and sensitivity allow detection of minor compounds and contaminants at low concentrations. These advanced testing methods are enhancing lab efficiency while meeting stringent regulatory standards.
The global Cannabis Testing Services Market Size is estimated to be valued at US$ 1881.19 Mn in 2023 and is expected to exhibit a CAGR of 13.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the cannabis testing services market requires huge capital investment for setting up testing facilities and equipment. Moreover, entering this market also requires regulatory approvals and certifications.
Bargaining power of buyers: The bargaining power of buyers is high as various cannabis testing laboratories and facilities are available in the market catering to testing needs across different regions. This provides buyers with alternatives.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as they have huge demand from established cannabis testing facilities. However, the industry relies heavily on few equipment manufacturers for high-tech testing instrumentation.
Threat of new substitutes: The threat of new substitutes is low as cannabis testing facilities offer unique services mandated by regulations that cannot be substituted easily.
Competitive rivalry: is high among existing players due to intense competition.
Key Takeaways
The global Cannabis Testing Services Market is expected to witness high growth, exhibiting 13% CAGR over the forecast period, due to increasing legalization of cannabis across various regions and stringent regulatory norms for product testing and quality checks.
Regional analysis: North America dominates the global cannabis testing services market currently. The region is expected to maintain its dominance during the forecast period owing to increasing cannabis cultivation and use in countries like the U.S. and Canada. Moreover, strong presence of key players and enactment of favorable regulatory framework will further aid regional market growth.
Key players operating in the Cannabis Testing Services Market are Thermo Fisher Scientific Inc., Merck KGaA, Shimadzu Corporation, PerkinElmer, Inc., Steep Hill Labs, Inc., CB Scientific Inc., Alpha-CAT, Orange Photonics, Inc., Gobi Labs, MyDx, Inc., SC Laboratories Inc., Restek Corporation, Waters Corporation, PharmLabs LLC, Eurofins Scientific, EVIO Labs, ProVerde Laboratories, Inc., Praxis Laboratory, Atlantic Test Labs, Inc., American Clinical Solutions, LLC., MCR Labs, Cannalysis, Aurum Laboratory, LLC, The Niva Labs, Encore Labs, SGS Canada Inc., Agricore Laboratories, and California Cannabis Testing Labs.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
