NEW YORK, March 28, 2017 /PRNewswire/ -- The global cannabis testing market is expected to reach USD 1,416.3 million by 2021 from USD 822.0 million in 2016, at a CAGR of 11.5% during forecast period (2016–2021). The growth in this market is mainly driven by factors such as legalization of medical cannabis, coupled with the growing number of cannabis testing laboratories (specifically in the U.S.); growing adoption of LIMS in cannabis testing laboratories; and increasing awareness through conferences, symposia, and workshops. On the other hand, the high cost of analytical instruments, presence of alternative technologies, and dearth of skilled professionals are some of the major factors that are expected to restrain the growth of this market in the coming years.
Rising funding for cannabis testing laboratories is one of the major trend observed in the cannabis testing industry. Growing legalization of cannabis for medicinal purpose has attracted various prominent market players and investors to invest in cannabis testing laboratories to develop and improve analytical testing to ensure consumer safety. For instance:
- In February 2017, Cannabi-Tech Ltd. (CBT) (Israel) received funding of USD 1 Million from Agrinnovation. The company intends to utilize these funds for the North American launch of its testing platform for medical cannabis labs and dispensaries.
- In November 2015, Steep Hill Labs, Inc. (U.S.) received funding of USD 2 Million from Delft Blue Horizons (Netherlands), Phyto Partners (U.S.), and Poseidon Asset Management (U.S.) to support the expanded testing services in addition to new research and product development.
The cannabis testing market is segmented on the basis of product & software, service, end user, and region. The cannabis testing services market (services offered by cannabis testing laboratories) is segmented into potency testing, terpene profiling, pesticide screening, residual solvent screening, heavy metal testing, microbial analysis, and genetic testing. The potency testing segment accounted for the largest share in 2016 and also expected to grow at the highest CAGR during the forecast period as a majority of the end users primarily test their cannabis plants for cannabinoids and look for evaluating the strength of cannabis and the effect it will have on medical marijuana users.
North America is expected to register the highest CAGR during the forecast period. This can be attributed to growing legalization of cannabis for medical use; rapid growth in the number of cannabis testing laboratories; the presence of prominent players in this region; growing awareness regarding medical cannabis through various seminars, conferences, and symposia; and rising funding for the cannabis industry in this region.
This market is categorized on the basis of product & software, service, end user, and region. Apart from the comprehensive regional analysis, product analysis, and market sizing, the report also provides a competitive landscape that covers growth strategies adopted by industry players over the last three years. The company profiles comprise basic views on key players and their product portfolios, developments, and strategies adopted. The above-mentioned market research data, current market sizes, and forecast of future trends will help key players and new entrants make informed decisions regarding product offerings, geographical focus, changes in strategic approach, R&D investments, and levels of output in order to remain successful.
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The report will enrich both established firms as well as new entrants/smaller firms to gauge the pulse of the market, which in turn will help firms, garner a greater market share. Firms purchasing the report can use any one or a combination of the below-mentioned five strategies (market penetration, product development/innovation, market development, market diversification, and competitive assessment) for strengthening their market shares.
The report provides insights on the following pointers:
- Market Penetration: Comprehensive information on the product portfolios of the top players in the cannabis testing market. The report analyzes the cannabis testing market by product & software, service, end user, and region.
- Product Development/Innovation: Detailed insights on upcoming technologies, R&D activities, and new product launches in the global cannabis testing market.
- Market Development: Comprehensive information about the cannabis testing market across countries.
- Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the global cannabis testing market.
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