New analysis from Global Market Insights, Inc., shows the US cannabis testing market will be worth $1.2bn by 2026.
The Global Market Insights report shows that growing demand for medical cannabis for the treatment of various ailments has led to the growth of the US cannabis testing market. This rise in demand has further resulted in the implementation of strict government policies for the testing of cannabis to be used in medical cannabis products, thereby propelling the industry outlook.
An increasing number of applications for medical cannabis in the medical cannabis industry to treat ailments such as chronic pain and epilepsy will likely bring forth a stimulating period of growth for the medical cannabis testing market during the projected timespan.
Furthermore, various research institutes are actively focusing on exploring novel applications of cannabis. To that end, increasing investment in R&D activities is likely to further grow the cannabis testing market over the forthcoming years.
The increasing discovery of the medicinal benefits offered by cannabis have driven the demand for legalisation, and several states across the US have subsequently legalised the usage of the product for treating specific medical conditions. The legalisation is further anticipated to increase the need for laboratories to test safety and potency, thereby driving industry growth.
In addition, awareness of the medical benefits of cannabis is likely to increase the number of users, establishing the need for safety standards for the product. The above factors will assist in the expansion of the US cannabis testing market during the projected time period.
Below are four key trends that are likely to influence the expansion of the US cannabis testing market over the coming years.
Technological advancements in the US cannabis testing market
The US cannabis testing market, based on technology, is divided into spectroscopy and chromatography. The chromatography segment is further categorised into gas, liquid chromatography, and others.
Among these, the chromatography segment is expected to lead the market outlook throughout the projected time period. The segment held a market share of nearly 63% in 2019 and is projected to record a substantial growth rate. The growth can also be ascribed to various advantages of chromatography testing like accurate and fast results.
Meanwhile, manufacturers are introducing innovative techniques related to chromatography, especially for the cannabis testing market. Several technological advancements like these are likely to increase the adoption of chromatography for testing of cannabis, thereby, positively influencing segment growth in the upcoming years.
Growing demand for potency testing in the market
Based on test type, the cannabis testing market in the US is bifurcated into pesticide screening, terpene testing, residual solvent screening, mycotoxin testing, potency testing, heavy metal testing, and others. Potency testing includes analysing the product for concentration of compounds like CBD (cannabidiol), and THC (tetrahydrocannabinol), that are proven to have medical benefits.
Furthermore, testing is usually done to label products accurately to obtain certification, optimise the potency of crops, and for dosage. The segment registered a significant market share in 2019 and is likely to show a CAGR of 10.7% during the projected time period.
Subsequently, high growth could be ascribed to the growing number of cultivators of medical cannabis. With rising competition in the market, there is a need for industry players to possess an edge over the competition with progressively potent products. The above factors will increase the growth of the segment and expand the market.
Role of service providers in cannabis testing
The service providers in the cannabis testing industry are divided into research institutes, manufacturers, laboratories, and others. The laboratories segmented accounted for $492.5m in 2019 and is likely to showcase formidable growth over the projected time period.
Moreover, stringent rules by authorities to safeguard product quality and safety of consumers will further increase the market growth for cannabis testing laboratories.
Legalisation of cannabis
The region of Mountain States was valued at over $167.4m in 2019 and will foresee a significant growth. This could be ascribed due to the presence of states like Colorado, Nevada, and New Mexico, where the usage of cannabis for therapeutic drug has been given approval.
Furthermore, the legalisation of cannabis has further driven the market growth of medical cannabis and thereby encouraged the cannabis testing market. These factors have led an impact to the zonal market growth.