Market Trends of Global Cannabis Testing Industry
This section covers the major market trends shaping the Cannabis Testing Market according to our research experts:
The Analytical Instruments Segment is Dominating the Market
The COVID-19 impact on analytical instruments has been positive. In general, due to the COVID-19 pandemic, there has been an increase in demand for analytical instruments as the production of equipment has increased significantly. Additionally, since cannabis extracts are being used for medical research, there has been sustained demand for these equipment even during the pandemic. Finally, many regions in the United States tagged cannabis dispensaries with the title of 'essential business'. Thus, these developments are expected to positively affect the market development.
Cannabis extracts need to be tested for heavy metals, potency, pesticides, terpene profile, residual solvents, moisture, microbial and fungal growth, and mycotoxins/aflatoxin. Testing makes sure that the products are safe, while concurrently generating revenues and a return on investment. Instruments like HPLC, gas chromatography, and liquid chromatography are used extensively. An article titled 'Potency testing of cannabinoids by liquid and supercritical fluid chromatography: Where we are, what we need' published in the Journal of Chromatography A in June 2021 indicated that potency testing by high-performance liquid chromatography (HPLC) with UV detection and supercritical fluid chromatography (SFC) has been highly beneficial in the accurate potency testing of cannabis products..
Chromatography techniques are used extensively for contaminant reduction. They can be cost-effective while efficiently removing contaminants like fungicides, pesticides, herbicides, synergists, and heavy metals from cannabis and hemp extracts. Chromatography can also be used for reducing tetrahydrocannabinol (THC) content in cannabis extracts. They are used to separate cannabinoids like Cannabidiol (CBD), THC, Cannabinol (CBN), Cannabigerol (CBG), etc., from cannabis extracts. Many companies like Sorbent Technologies Inc. offer exclusive chromatography-based testing and extraction products. The company manufactures dedicated chromatographic products like Adsorbents, Thin-layer chromatography (TLC) Plates, Flash Cartridges, Flash Chromatographic Systems, Fast protein liquid chromatography (FPLC) Columns, High-performance liquid chromatography (HPLC) Columns, Gas Chromatography (GC) Columns, Gel Filtration, Solid Phase Extraction (SPE) Cartridges, and Syringe Filters. Many other companies like Aurum Labs, WATERS, and CannaSafe Inc., among others, offer diversified products too. The presence of major companies is expected to boost the market growth as it leads to greater product availability.
Also, the key market players are aiding in the market growth over the forecast period. In March 2021, PerkinElmer launched industry-first Certified reference material (CRM) reagent and consumable kit to streamline cannabis pesticide testing workflows. Such products aid in the easier analysis of the cannabis products using the analyzing instruments, which is likely to add to the segmental growth over the forecast period.
North America Dominates the Market and is Expected to do the Same in the Forecast Period
North America is expected to dominate the overall market throughout the forecast period. The market growth is due to factors such as the high prevalence of chronic diseases in the region, favorable legislation, and the presence of large companies.
According to the article by the Government of Canada released in April 2022, over 90,000 people in Canada over the age of 40 years were living with Parkinson's disease as of date. As per the National Institute of Neurological Disorders and Stroke data on Parkinson's disease updated in July 2022, around 500,000 people in the United States were reported to be diagnosed with Parkinson's, however, some experts estimate that over 1 million Americans have Parkinson's disease and are unreported due to undiagnosed or misdiagnosis problems. Cannabis-derived CBD products are used to treat some symptoms of neurological disorders like Parkinson's. Such high incidence rates are expected to have a positive effect on market growth.
Canada was one of the first countries in the world to legalize the production and use of cannabis. In October 2019, it updated its laws to establish rules for the legal production and sale of three new classes of cannabis, which included edible cannabis, cannabis extracts, and cannabis topicals. These products need advanced purification and testing equipment for their extraction from cannabis sativa plants. Thus, regulatory changes like the one in Canada are expected to have a positive effect on the market development.
Furthermore, collaborations between major companies and an increase in the number of research efforts are some of the factors expected to drive the market growth. In this region, the United States is expected to have the maximum share due to supportive healthcare policies and the high number of patients. In August 2022, SC Labs rebranded Agricor, Botanacor, and Can-Lab to become one company under the SC Labs name, which offers seamless testing services for cannabis across California, Michigan, Oregon, and Colorado, as well as hemp testing capabilities nationwide. Such actions are expected to boost the market growth over the forecast period.
