As the global cannabis market continues to expand in the coming years, so too will the testing business.
That’s according to new market research which is predicting a boom in the ancillary sector between now and 2027.
Cannabis testing in an important part of the process which must be carried out before products can reach customers and patients.
Testing for THC, CBD and terpene levels is a key step in ensuring products comply with legislation and regulations.
The testing process also typically looks out for residual solvents, mould, disease, pests or pesticide residue.
New analysis from Research and Markets predicts the sector will be worth $2,445 million by 2027, up from $1,029 million in 2019.
Rising demand as countries liberalise recreational and medical cannabis laws will see the sector blossom, the report forecasts.
Testing has become a hot topic for the CBD industry in Europe as companies seek to approval from regulators following the roll out of novel foods regulations.
Directors must submit a wide array of safety and technical data derived from testing to be assessed if they wish to remain on shelves.
The report concludes: “Rising demand for cannabis legalisation 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.
“Furthermore, collaborations between major companies are also expected to boost the market growth.
“However, high startup cost for cannabis testing laboratories is expected to restrain the growth of the market.
“These laboratories have to make significant investments in procuring and maintaining high-priced, advanced analytical equipment.
“Conversely, emerging economies across developing regions, such as LATAM and Asia-Pacific, are expected to provide new opportunities for market players in future.”