Global Cannabis Testing Market Size (2024 - 2029)

The cannabis testing market is projected to experience significant growth over the forecast period, driven by increasing legal approvals for medical cannabis and the rising demand for testing services to isolate novel compounds. The market's expansion is further supported by favorable legislation regarding hemp-based products and the growing use of cannabis extracts for treating neurological and mental disorders. Despite challenges such as the high cost of testing instruments, the market is expected to benefit from new initiatives and collaborations within the industry.

Market Size of Global Cannabis Testing Industry

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Cannabis Testing Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 1.11 Billion
Market Size (2029) USD 2.05 Billion
CAGR (2024 - 2029) 13.12 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Cannabis Testing Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Cannabis Testing Market Analysis

The Global Cannabis Testing Market size is estimated at USD 1.11 billion in 2024, and is expected to reach USD 2.05 billion by 2029, growing at a CAGR of 13.12% during the forecast period (2024-2029).

The impact of COVID-19 on this industry is still being studied. On one hand, due to the shutdown of non-essential labs and testing facilities across the world in response to COVID-19-induced lockdowns, sales of cannabis testing equipment and services were a bit low. However, there has been positive news too. In April 2020, two Israel-based companies, Eybna and CannaSoul, collaborated to work on a patented cannabis terpene formulation for treating COVID-19. The companies are examining the efficacy of the cannabis terpene formulation, which is being used to treat a diverse range of inflammatory conditions, including the cytokine storm syndrome caused by COVID-19. Collaborations and increased research in this segment are likely to create demand for cannabis testing services to isolate novel compounds.

The major factor attributing to the growth of the market is the increasing approval for the use of medical cannabis. The legal usage of cannabis for medical purposes is steadily growing but varies across countries based on the possession, distribution, cultivation, and medical indications for its consumption. In addition, there is an increasing volume of research supporting the use of marijuana for medical purposes, while some studies demonstrated it to be a potential means of fighting the opioid epidemic. Government bodies of several countries across North America, Europe, and South America have legalized the use of medicinal marijuana completely or for limited usage in certain forms on a strict basis. Globally, there are about 40 countries that allow the legal use of marijuana that is distributed through prescription or limited use in ayurvedic medicines. The use of hemp-based products has seen favorable legislation since the passage of the United States Farm Bill in 2018. The bill allowed the broad-based cultivation of hemp while restricting it to pilot programs for studying market interest in hemp-derived products. The bill explicitly allowed the transfer of hemp-derived products across state lines for commercial or other purposes. Additionally, it puts no restrictions on the sale, transport, or possession of hemp-derived products, so long as those items are produced in a manner consistent with the law. In February 2021, lawmakers in the United States stated that they were planning new legislation that would end the federal prohibition on marijuana, which has been legalized to some degree by many states. These initiatives are likely to impact the demand for cannabis testing equipment in a positive manner. As cannabis-based products find increased legislation and come under the ambit of law, the demand for testing equipment is expected to increase during the study period.

Cannabis extracts are also used to treat many neurological and mental disorders. As the incidence of these disorders increases, along with the increase in use and production of cannabis, the cannabis testing market is also expected to grow during the forecast period. According to the European Brain Council, as of 2022, approximately 600 neurological disorders reported around the world, placing mental disorders among the leading causes of ill-health and disability globally. Depression is the most common mental disorder. Globally, more than 264 million people of all ages suffer from depression. More women are affected by depression than men. Furthermore, growing awareness and adoption of software services in labs testing cannabis are other factors boosting the market.

The recent initiatives in cannabis testing by various key market players are likely to add to the market growth. For instance, in September 2022, Method Testing Labs, a third-party cannabis and hemp testing facility launched in 2021, opened a Florida-based lab located in Brandon, Florida. Such activities are expected to add to the market growth.

However, the high cost involved in cannabis testing instruments is a major drawback of the market growth.

Cannabis Testing Industry Segmentation

As per the scope of the report, cannabis is proven to be effective in various medical applications, such as reducing nausea caused due to chemotherapy, stimulating appetite in AIDS patients, controlling muscular spasms in multiple sclerosis patients, etc. Cannabis testing refers to the analytical examination of cannabis to ensure its safety before human consumption. The Cannabis Testing Market is Segmented by Product and Software/Service (Analytical Instruments, Spectroscopy Instruments, Consumables, and Cannabis Testing Software and Services), Type (Potency Testing, Terpene Profiling, Residual Solvent Screening, Heavy Metal Testing, Mycotoxin Testing, and Other Types), End User (Laboratories, Cannabis Drug Manufacturers and Dispensaries, and Other End Users), and Geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America). The Market report also covers the estimated market sizes and trends of 17 countries across major regions globally. The report offers the value (in USD million) for the above segments.

By Product and Software/Service
Analytical Instruments
Spectroscopy Instruments
Consumables
Cannabis Testing Software and Services
By Type
Potency Testing
Terpene Profiling
Residual Solvent Screening
Heavy Metal Testing
Mycotoxin Testing
Other Types
By End User
Laboratories
Cannabis Drug Manufacturers and Dispensaries
Other End Users
Geography
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Middle-East and Africa
GCC
South Africa
Rest of Middle-East and Africa
South America
Brazil
Argentina
Rest of South America
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Global Cannabis Testing Market Size Summary

The cannabis testing market is poised for significant growth, driven by increasing legalization and acceptance of cannabis for medical purposes across various regions. The market is experiencing a surge in demand due to the expanding use of cannabis extracts in treating neurological and mental disorders, alongside the rising prevalence of such conditions globally. The legal framework supporting medical cannabis use is evolving, with many countries in North America, Europe, and South America permitting its use under strict regulations. This regulatory environment, coupled with favorable legislation like the United States Farm Bill, is expected to bolster the demand for cannabis testing equipment and services. The market is also witnessing advancements in analytical instruments and chromatography techniques, which are crucial for ensuring the safety and efficacy of cannabis products by testing for contaminants and potency.

The COVID-19 pandemic has had a mixed impact on the cannabis testing industry, with initial disruptions due to lockdowns but later leading to increased demand for analytical instruments. The pandemic highlighted the importance of cannabis testing in medical research, further driving market growth. Key players in the industry are actively expanding their operations and introducing innovative testing solutions, which are expected to contribute to market expansion. North America is anticipated to dominate the market, supported by a robust regulatory framework and the presence of major companies. Collaborative efforts and research initiatives are also playing a pivotal role in advancing the market. Despite the high costs associated with testing instruments, the overall outlook for the cannabis testing market remains positive, with significant growth anticipated over the forecast period.

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Global Cannabis Testing Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Legalization of Cannabis for Various Medical Purposes

      2. 1.2.2 Increasing Awareness regarding Cannabis for Treating Neurological Diseases

    3. 1.3 Market Restraints

      1. 1.3.1 High Cost of Analytical Instruments

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size by Value - in USD Millions)

    1. 2.1 By Product and Software/Service

      1. 2.1.1 Analytical Instruments

      2. 2.1.2 Spectroscopy Instruments

      3. 2.1.3 Consumables

      4. 2.1.4 Cannabis Testing Software and Services

    2. 2.2 By Type

      1. 2.2.1 Potency Testing

      2. 2.2.2 Terpene Profiling

      3. 2.2.3 Residual Solvent Screening

      4. 2.2.4 Heavy Metal Testing

      5. 2.2.5 Mycotoxin Testing

      6. 2.2.6 Other Types

    3. 2.3 By End User

      1. 2.3.1 Laboratories

      2. 2.3.2 Cannabis Drug Manufacturers and Dispensaries

      3. 2.3.3 Other End Users

    4. 2.4 Geography

      1. 2.4.1 North America

        1. 2.4.1.1 United States

        2. 2.4.1.2 Canada

        3. 2.4.1.3 Mexico

      2. 2.4.2 Europe

        1. 2.4.2.1 Germany

        2. 2.4.2.2 United Kingdom

        3. 2.4.2.3 France

        4. 2.4.2.4 Italy

        5. 2.4.2.5 Spain

        6. 2.4.2.6 Rest of Europe

      3. 2.4.3 Asia-Pacific

        1. 2.4.3.1 China

        2. 2.4.3.2 Japan

        3. 2.4.3.3 India

        4. 2.4.3.4 Australia

        5. 2.4.3.5 South Korea

        6. 2.4.3.6 Rest of Asia-Pacific

      4. 2.4.4 Middle-East and Africa

        1. 2.4.4.1 GCC

        2. 2.4.4.2 South Africa

        3. 2.4.4.3 Rest of Middle-East and Africa

      5. 2.4.5 South America

        1. 2.4.5.1 Brazil

        2. 2.4.5.2 Argentina

        3. 2.4.5.3 Rest of South America

Global Cannabis Testing Market Size FAQs

The Global Cannabis Testing Market size is expected to reach USD 1.11 billion in 2024 and grow at a CAGR of 13.12% to reach USD 2.05 billion by 2029.

In 2024, the Global Cannabis Testing Market size is expected to reach USD 1.11 billion.

Cannabis Testing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)