February 23, 2024
Cannabis Testing Services Market

Expanding Global Acceptance To Boost Growth In The Cannabis Testing Services Market

Cannabis testing services help ensure product safety and quality through a variety of analytical testing methods. These services test cannabis and cannabis-derived products for things like potency, pesticides, heavy metals and microbiological contaminants. The need for cannabis testing has grown along with the legal cannabis industry to establish consumer confidence and compliance with regulations which require testing for licensed producers and retailers. Various tests employed include microbiological testing to detect pathogens, residual solvent screening, terpene profiling to understand aromatic compounds, and potency analysis to verify THC and CBD levels.

The global Cannabis Testing Services Market 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 from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the cannabis testing services market is the increasing demand for robust auditing and compliance programs. With the evolving regulatory frameworks, testing facilities are expected to comply with various standards and certifications like ISO/IEC 17025 for quality management. They need to demonstrate adherence to standard operating procedures and maintain approved sampling practices. There is also a growing need for advanced testing equipment and methodology. Laboratories are investing in sophisticated analytical instruments like GC-MS, HPLC, UV spectroscopy etc. for accurate quantitative and qualitative analysis. Portable and on-site testing solutions are also gaining popularity to enable quick results and ensure product quality across the supply chain.

Porter’s Analysis

Threat of new entrants: The threat of new entrants into the cannabis testing services market is moderate. High capital investments and regulatory compliances pose entry barriers for new players.

Bargaining power of buyers: The bargaining power of buyers in the cannabis testing services market is moderate. Buyers can choose from various service providers offering standardized testing procedures and technologies.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. The availability of testing equipment and consumables from major players limits the power of suppliers.

Threat of new substitutes: Threat from new substitutes is low as cannabis testing services have no close substitutes and testing is mandated by regulations.

Competitive rivalry: The competitive rivalry is high due to the presence of numerous global and regional players offering standardized as well as customized testing services.

Key Takeaways

The Global Cannabis Testing Services Market Size is expected to witness high growth, exhibiting a CAGR of 13% over the forecast period, due to increasing legalization of cannabis and focus on ensuring safety through stringent testing regulations.

The North America region dominates the cannabis testing services market and is expected to continue its dominance over the forecast period. Favorable regulatory framework for cannabis and legalization in major countries drive the regional market.

Key players operating in the Cannabis Testing Services market include 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