Cannabis Testing Market Set to Surge Significantly During 2025

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Global Cannabis Testing Market: Snapshot

Cannabis testing entails detecting traces of the illicit drug in people. Also, referred to as grass, marijuana, dope, pot, weed, joints, hash, joints, and so on, it is often used in sports or medicine to reduce pain, bring about muscle relaxation, and reduce stress. Despite such benefits, it is not legalized since it has a high potential for abuse on account of the intoxication its leads to.

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A debate has been raging for decades now if cannabis should be made legal and used in medicines. However, certain long term disadvantages of it such as rising risks of respiratory diseases related to smoking, risk of cancer, reduced memory, and lowered concentration, has resulted in it being banned in most parts of the world. This has been the primary driver of cannabis testing market.

However, unlike alcohol testing which can be done with a breath analyzer, cannabis testing is more elaborate. It requires saliva tests, hair analysis, and urinalysis. Cannabis testing typically measure levels of THC or its metabolite, THC-COOH. Traces of cannabis can be found for months even after the last usage. However, these tests fail to detect the exact degree of impairment. Owing to the ban on the use of cannabis in most parts of the world and surging instances of intoxicated driving, demand for cannabis testing is rising. An emerging trend in the market is the luxury cannabis which contains limited amounts of it to prevent the ill-effects of smoking.

Currently, North America is a key market for cannabis testing for reasons more than one. First it is home to many laboratories equipped to test cannabis. Second cannabis is legalized for medical purposes in the region. Third, rising knowledge about medical cannabis, increasing spends on its research, and presence of many key players in the market is also benefitting it.

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Global Cannabis Testing Market: Overview

Cannabis testing includes a number of drug test methodologies pertaining to the use of cannabis in sports, medicine, and law. Unlike alcohol, which can be tested using a breathalyser, cannabis testing requires hair analysis, saliva tests, and urinalysis, and is a time consuming process. Moreover, these tests fail to detect the exact degree of impairment, although via cannabis testing it is possible to distinguish between active and passive exposure, duration from the time of use, and the extent. Owing to the ban on the use of cannabis in most parts of the world and increased cases of intoxicated driving, the need for proper cannabis testing is escalating. As a result, the demand in the global cannabis testing market is expected to expand at a healthy rate during the forecast period of 2017 to 2025. 

Global Cannabis Testing Market: Key Trends

While 25 states in the U.S. have already legalized the use of cannabis for medical purposes, several other states are expected to walk along similar path in the near future. This growing legalization of cannabis use is the primary driver in the global market for cannabis testing. In addition to that, escalating number of specialized laboratories for cannabis testing, growing awareness for the availability of these tests via workshops, conferences, and symposia, increasing demand cannabis testing for international travelers, and incremented number of drug influenced road accidents are some of the other factors augmenting the demand in the global cannabis testing market. On the other hand, presence of alternative technologies, high cost of cannabis analytical instruments, and the lack of skilled professionals are a few factors that are hindering the global cannabis testing market from achieving its true potential.

Based on test-type, the global cannabis testing market can be segmented into terpene profiling, pesticide screening, potency testing, residual solvent screening, microbial analysis, genetic testing, and heavy metal testing. Research institutes, laboratories, cultivators and drug manufacturers are some of the categories of end user in the global cannabis testing market. 

Global Cannabis Testing Market: Market Potential

For a long time, the lack of investments made towards the development of proper drug testing laboratories was obstruction the prosperity of this market but in the recent past, this has changed. For instance, Poseidon Asset Management, Delft Blue Horizons, and Phyto Partners collectively funded Steep Hill Labs, Inc. with US$2.0 mn in November 2015 in order to expand new research in this field and develop more sophisticated testing equipment. Along the similar lines, Agrinnovation invested US$1.0 mn into the ventures of Cannabi-Tech Ltd. in February 2017, aspiring to launch specialized medical cannabis dispensaries and labs. This financial encouragement is expected to lure new opportunities for the players in this market.

Global Cannabis Testing Market: Regional Outlook

Geographically, North America is the most lucrative region for the players in the global market for cannabis testing, and is expected to remain highly profitable throughout the forecast period owing to factors such as growing number of laboratories equipped to test cannabis, legalization of cannabis for medical purposes, escalating awareness pertaining to medical cannabis, incremented funding, and presence of several prominent vendors in this market is propelling the demand in the cannabis testing market in North America. 

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Global Cannabis Testing Market: Competitive Landscape

Shimadzu Corporation, Agilent Technologies, Inc., PerkinElmer, Inc., AB SCIEX LLC, Waters Corporation, Millipore Sigma, Restek Corporation, LabLynx, Inc.(U.S.), Steep Hill Labs, Inc., Accelerated Technology Laboratories, Inc., SC Laboratories Inc., PharmLabs, LLC, Digipath Labs, Inc., and CannaSafe Analytics are some of the leading companies currently operating in the global cannabis testing market. Expanding their outreach in untapped regions and presenting the usefulness of these tests in order to gain new funding is the primary strategy of these players.

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