CANNABIS TESTING MARKET ANALYSIS

Cannabis Testing Market Size and Trends

Global cannabis testing market is estimated to be valued at USD 2.45 Bn in 2024 and is expected to reach USD 7.23 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 16.7% from 2024 to 2031. Cannabis testing is done to check potency, mold, yeast, pesticides, residual solvents and heavy metals in cannabis products.

To learn more about this report, request sample copy

Global cannabis testing market is expected to witness significant growth over the forecast period due to factors such as legalization of medical and recreational marijuana in various countries, increasing product availability in dispensaries and cross-border trade. However, lack of regulations surrounding recreational cannabis use can hamper the market growth.

Rising Acceptance of Medical Cannabis

The rising acceptance of medical cannabis across various countries is a major factor driving the growth of the global cannabis testing market. As more jurisdictions legalize medical marijuana and pass stricter regulations governing its production and sale, the need for comprehensive safety and quality testing of cannabis products has increased dramatically.Many governments and medical organizations now acknowledge the potential therapeutic benefits of certain cannabinoids like CBD and THC for patients suffering from chronic conditions such as cancer, epilepsy, chronic pain, arthritis and mental health issues. As a result, more people are turning to cannabis-based medicines to improve their quality of life. This growing patient base is exerting pressure on lawmakers to establish regulated systems for cultivating, manufacturing and dispensing safe medical cannabis. Countries like Germany, Italy, Thailand, South Korea and Mexico that had historically banned marijuana are now pursuing a medical cannabis program. For instance, according to the German Federal Institute for Drugs and Medical Devices report in 2021, about 70,000 people were prescribed medical cannabis in Germany that year, up from around 1,000 patients in 2017.The heightened requirement of testing cannabis for various chemical constituents, contaminants, pesticides and microbiological safety prior to use is spurring the need for advanced analytical equipment, consumables and software solutions in the industry. Cannabis testing labs are investing in sophisticated instruments like chromatography–mass spectrometry (GC-MS and LC-MS), fourier transform infrared spectroscopy (FTIR) and potency testing equipment to identify target analytes. Cannabis testing companies also need consumable items like testing kits, cartridges, columns and standards/reagents on a regular basis to conduct various tests as mandated by regulations. 

Technological advancements in testing equipment

Technological advancements in the equipment can drive the global cannabis testing market growth. New testing equipment allows for more accurate and efficient product quality screening. High-throughput devices can now simultaneously test multiple cannabis samples for contaminants, potency, and cannabinoid profiles much faster than before. This is important since the legal cannabis industry has compliance and safety standards to ensure product purity for consumers. As legalization expands to more states and countries, the need for testing will also increase to validate cannabis quality at scale. Sophisticated testing tools provide deeper compound analysis beyond just THC and CBD levels. Spectrometry and chromatography instruments can detect minute trace elements and isolate uncommon cannabinoids that may have future medical applications. Identification of low-level terpenes and other compounds provides operators valuable consumer insight into the most desirable product profiles. The advancement of testing technologies will continue diversifying the cannabis testing marketplace with customized goods tailored to demand. According to Health Canada, by 2023, improving technology can lead to 40% reduction in average testing costs, making compliance more affordable for producers. Lower costs will particularly benefit small growers and early-stage markets. As barriers to commercial entry decrease with innovations, total testing activity and the addressing market can expand rapidly. According to the data from United Nations Office on Drugs and Crime, medical cannabis adoption will rise globally due to growing validate of its therapeutic benefits being identified through sophisticated lab screening. With continued technology evolution and expanding international acceptance, the long-term potential for the cannabis testing industry appears very promising.