Cannabis testing services seek to ensure product safety and quality as the regulated cannabis industry expands across North America. Cannabis testing laboratories analyze product samples to detect the presence of contaminants, toxins, and verify that THC and CBD levels meet legal requirements. Their services include potency testing, microbial testing, residual solvent testing, heavy metal testing, pesticide testing, and terpene profiling. With the growing number of states legalizing medical and recreational use, many governments now mandate testing of cannabis products to establish health and consumer safety standards.
The global cannabis testing services market provides analytical testing and quality assurance to producers and consumers. Cannabis testing reveals the chemical composition and content of cannabis plants and extracts used in various medical and consumer products. The services identify the presence of impurities, toxins, and verify cannabinoid levels and potency claimed on labels. The need for regulation and product safety oversight is driving increased demand for cannabis testing.
The global Cannabis Testing Services Market is estimated to be valued at US$ 2167.14 Mn in 2024 and is expected to exhibit a CAGR of 22.8% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growth of the cannabis testing market is influenced by increasing legalization and regulation of cannabis across North America. One key trend is the adoption of standards for cannabis testing thresholds by government regulators. Several US states like Colorado, California and Oregon have mandated specific THC and CBD content limits as well as purity thresholds. This is driving greater need for testing labs and services to ensure product compliance. Another trend is increasing sophistication of testing methods to precisely analyze minor and toxic contaminants in cannabis and related products down to parts-per-billion levels. Advanced analytical techniques like LC-MS/MS and ICP-MS enable highly sensitive cannabis testing required to meet regulatory purity standards.
Porter’s Analysis
Threat of new entrants: The threat is moderate as large initial investments are required to set up testing laboratories and acquire the necessary certifications. However, growing demand creates opportunities.
Bargaining power of buyers: The bargaining power of buyers is high as there are many testing service providers. Buyers can negotiate on price and turnaround time.
Bargaining power of suppliers: The power of suppliers is low as testing instruments and materials suppliers operate in a fragmented manner.
Threat of new substitutes: Threat from substitutes is low as cannabis testing provides unique functionalities that cannot be substituted.
Competitive rivalry: Competition is intense as many regional and global players operate in the market and compete on factors like price, certifications, quality, and turnaround time.
Key Takeaways
The Global Cannabis Testing Services Market Demand is expected to witness high growth. The global Cannabis Testing Services Market is estimated to be valued at US$ 2167.14 Mn in 2024 and is expected to exhibit a CAGR of 22.8% over the forecast period 2024 to 2031.
North America dominated the market in 2021 due to legalization of medical cannabis in major countries and rise in R&D activities. The Asia Pacific region is expected to grow at the fastest pace during the forecast period owing to emerging cannabis markets in countries like Australia, China, and India.
Key players operating in the Cannabis Testing Services market are B. Braun Melsungen AG, Fagron NV, PharMEDium Services, LLC (AmerisourceBergen Corporation), Baxter International Inc., Fresenius Kabi AG, Advanced Pharma, Inc., McGuff Compounding Pharmacy Services, Inc., Central Admixture Pharmacy Services, Inc. (CAPS), Institutional Pharmacy Solutions, LLC, Wedgewood Pharmacy, Medisca Inc., Dougherty’s Holdings, Inc., PharMEDium Services, LLC (AmerisourceBergen Corporation), PharMEDium Services, LLC, (AmerisourceBergen Corporation), BioScrip, Inc. These players are focusing on geographical expansion and strategic collaborations to strengthen their market presence.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it