Growing demand for cannabis legalization in several countries for medical purposes and increase in adoption of LIMS in cannabis testing laboratories are the key factors driving the growth of the cannabis testing market.
Rise in demand for cannabis legalization in several countries for medical purposes, surge in adoption of LIMS in cannabis testing laboratories, and collaborations between major companies drive the growth of the global cannabis testing market. However, high start-up costs for cannabis testing laboratories hinder the market growth. On the other hand, untapped potential in emerging economies creates new opportunities in the coming years.
The global Cannabis Testing Market generated $1.02 billion in 2019, and is estimated to generate $2.44 billion by 2027, witnessing a CAGR of 11.9% from 2020 to 2027.
Cannabis refers to a group of three plants with psychoactive properties, known as Cannabis sativa, Cannabis indica, and Cannabis ruderalis. When the flowers of these plants are harvested and dried, it is left with one of the most common drugs in the world. Some call it weed, some call it pot, and others call it marijuana. Cannabis is usually consumed for its relaxing and calming effects. Cannabis testing includes use of several medical instruments, consumable, and software to detect the quality of cannabis. This helps to identify the quality of cannabis for several medical purposes. Previously, both cultivation and sales of cannabis were banned across the globe for several years. Now, many countries are recognizing the benefits of cannabis for medicinal purposes and rescinding their ban.
Covid-19 Scenario:
- During the lockdown imposed by governments during the Covid-19 pandemic, many cannabis testing labs were partially or completely closed. Moreover, there have been disruptions in the supply chain and restricted movement of people.
- Many market players that offer products and software to the cannabis testing market witnessed decline in the sales of instruments and consumables due to numerous factors such as shutdown of labs, reduced number of cannabis tests, and restrictions on import and export.
Leading players of the global cannabis testing market analyzed in the research include Danaher Corporation, Agilent Technologies Inc., PerkinElmer, Merck KGAA, SC Laboratories, Restek Corporation, Steep Hill, Shimadzu Corporation, Thermo Fisher Scientific, and Waters Corporation.
North America accounted for the largest share of revenue in 2019, and is anticipated to maintain its dominance from 2020 to 2027, owing to legalization of cannabis (especially in the U.S.) and the growing ease of availability of instruments, software, and services for cannabis testing, which are driving the growth of the North American cannabis testing market. However, LAMEA is expected to grow at the highest CAGR, owing to increasing number of cannabis cultivators, rising number of testing laboratories, and legalization of cannabis for medical use.
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