Cannabis testing services include quality control testing for THC, cannabidiol (CBD) and over 150 other cannabinoids in order to ensure the safety and quality of cannabis products. Cannabis testing is important for the quality assurance of cannabis and cannabis-derived products which are increasingly being used medicinally and recreationally.

The global cannabis testing services market size is 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 Opportunity:

The opportunity of increasing legalization of cannabis across various countries is expected to drive the growth of the cannabis testing services market during the forecast period. Cannabis legalization has led to growth in the cannabis industry which in turn is increasing the need for quality control and safety testing of cannabis products. Many countries and states have legalized medical cannabis, adult-use cannabis, or decriminalized cannabis possession which is serving to expand the addressable market potential for cannabis testing services. As the number of legal cannabis programs grows globally, so too will the demand for standardized testing to ensure product safety, efficacy, and quality control. This rising legalization of cannabis presents lucrative market opportunity for cannabis testing service providers.

Porter’s Analysis

Threat of new entrants: The Cannabis testing services market has moderate threat of new entrants due to the high capital requirement needed for equipment, trained professionals, licensing and certification.

Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of many suppliers offering similar testing services. However, complex testing needs increases their dependence on experts.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of alternative suppliers in the market. However, their specialized equipment and expertise raises switching costs for buyers.

Threat of new substitutes: Low threat of substitution exists as cannabis testing requires unique equipment and follow strict regulatory guidelines for ensuring product safety and quality.

Competitive rivalry: The market sees intense competition due to many regional and global players offering varied range of testing and analytical methods. Market consolidation is also observed.

SWOT Analysis

Strength: Presence of stringent regulations ensures standardized testing and transparency. Growing medicinal and recreational cannabis market offers lucrative growth opportunities.

Weakness: Costly equipment and lack of trained professionals hinders geographic expansion of small players. Certain inconsistencies exist in testing standards set by different states/countries.

Opportunity: Emerging contaminant testing technologies such as residual solvent testing provide new avenues. Favorable reforms in legislation will boost the overall demand.

Threats: Legalization of cannabis in new regions leads to oversupply disrupting the prices. Consolidation of market poses pricing pressure on smaller players.

Key Takeaways

The Global Cannabis Testing Services Market Growth is projected to grow tremendously till 2031 on account of increasing medicinal applications of cannabis and its legalization across regions. The global cannabis testing services market size is 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 will continue dominating the Cannabis Testing Services market owing to expanding consumer base and established regulatory framework. The region accounts for majority of global market currently. Countries like U.S. and Canada offer numerous opportunities given growing cannabis cultivation and its usage for various medical conditions.

Key players operating in the Cannabis Testing Services market incorporate 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. The key players adopt organic and inorganic growth strategies like partnerships, mergers and acquisitions to strengthen their market position.

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