The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The global cannabis testing market is expected to reach USD 1,806 million by 2025 from USD 962 million in 2020, at a CAGR of 13.4% during the forecast period. The growth in this market is mainly driven by factors such as the legalization of medical cannabis and the growing number of cannabis testing laboratories (specifically in the US), the growing adoption of LIMS in cannabis testing laboratories, and increasing awareness. A lack of uniformity in rules and regulations, high costs, and inadequate personnel are major factors expected to hamper the market growth.
“Potency testing services is likley to dominate the services segment during the forecast period.’’
The cannabis testing services market is poised to grow at a CAGR of 13.7% during the forecast period. The high growth of this market is owing to the growing legalization of medical marijuana (especially in the US). In addition, funding initiatives for cannabis testing laboratories and the growing number of cannabis testing laboratories are contributing to the growth of the cannabis testing services market. However, variations in cannabis testing methods and the lack of testing regulations are likely to limit the growth of the market to a certain extent.
“By product & software, the product segement accounted for the largest share of the cannabis testing market”
The cannabis testing market is segmented into products and software. The product segment is expected to register the highest CAGR of 13.4% during the forecast period. The high growth of this segment can be attributed to the growing requirements for potency labeling and pesticide screening, which drive the demand for analytical instruments, introduce technologically advanced products, and increase the recurring demand for consumables.
“North America: The fastest-growing region in the cannabis testing market.”
North America is expected to command the largest market share of 71.2% in 2020. This market is also projected to register the highest CAGR of 13.8% during the forecast period. Factors such as the legalization of cannabis (especially in the US) and the growing availability of products, software, and services for the cannabis testing industry are driving the growth of the North American cannabis testing market.
Breakdown of primaries
The study contains insights from various industry experts, ranging from component suppliers to Tier 1 companies and OEMs. The break-up of the primaries is as follows:
- By Respondent– Supply Side- 50%, Demand Side- 50%
- By Designation- CEO/Directors- 40%, Managers - 30%, Regional Heads- 30%,
- By Region- North America - 40%, Europe - 20%, APAC – 20%, LATAM- 10% MEA-10%
The cannabis testing market is dominated by a few globally established players such as Agilent Technologies, Inc., Shimadzu Corporation, MERCK KGAA, Thermo Fisher Scientific, DigiPath, Inc., Steep Hill Inc., SC Laboratories, Inc., PharmLabs LLC & among others
The report segments the cannabis testing market based on region (North America, Europe, Asia Pacific, Latin America and Middle East & Africa), product & software (anlaytical instruments, consumbles and software), services (potency testing, terpene profiling, pesticide screening, residual solvent analysis, heavy metal testing, microbial analysis, and other services), end user (product & software (cannabis testing laboratories and research institutes), services (drug manufacturers & dispensaries and cannabis cultivators)). The report also provides a comprehensive review of market drivers, challenges, and opportunities in the cannabis testing market
Key Benefits of Buying the Report:
The report will help the leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall market and the sub-segments. This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the cannabis testing market and provides them information on key market drivers, challenges, and opportunities.