Global Cannabis Testing Market – Increasing Use For Medical Purposes To Propel Growth

UNITED KINGDOM: The latest market research report by Technavio on the global cannabis testing market predicts a CAGR of around 12% during the period 2018-2022.

The report segments the global cannabis testing market by product (instruments, consumables, and software) and by geography (the Americas, EMEA, and APAC). It provides a detailed illustration of the major factors influencing the market, including drivers, opportunities, trends, and industry-specific challenges.

Here are some key findings of the global cannabis testing market, according to Technavio researchers:

  • Increasing use of cannabis for medical purposes: a major market driver
  • Emergence of luxury cannabis products: emerging market trend
  • In 2017, the global cannabis testing market was led by the Americas with a market share of more than 54%
  • In 2017, the global cannabis testing market by product was led by the instruments segment with a market share of over 50%

Increasing use of cannabis for medical purposes: a major market driver

The increasing use of cannabis for medical purposes is one of the major factors driving the global cannabis testing market. Cannabis used for medicinal purposes is referred to as medical marijuana or medical cannabis. In this case, the whole, unprocessed cannabis plant or its extracts are used to treat a variety of symptoms and conditions. Medical cannabis contains many compounds that are collectively referred to as cannabinoids. The two main compounds are tetrahydrocannabinol (THC) and Cannabidiol (CBD). Though there are several other types of cannabinoids in cannabis strains, THC and CBD are the most abundant compounds. These compounds mainly address pain symptoms in multiple diseases.

Cannabis Market Begins to Mature in Legal States

NEW YORK: According to a report by Ameri Research Inc., the global legal cannabis market was valued at $14.3 billion in 2016 and is forecast to grow at a CAGR of 21.1% between 2017 to 2024 and culminating to $63.5 billion by 2024.

The market is going through a period of strong growth thanks to increasing legalization and decriminalization of cannabis products across North America and Europe. The report indicates that legalization wave is moving beyond the U.S. region. In 2017, the Canadian prime minister has introduced a bill to legalize marijuana for recreational purposes. The proposed bill mandates the legal age for consumption of cannabis at 18 years, and provides clarity on the federal and state laws in regulating the cultivation, storage and distribution of cannabis across the country.

Strong sales in the cannabis market resulted in economic growth in states where sales of cannabis products are legal. The Ameri Research Inc. explains that, “Growing user base for recreational marijuana in states such as ColoradoCaliforniaAlaskaMassachusettsWashington DC and other states is a key factor boosting the tax revenues. For instance, in 2016 Colorado reported revenues exceeding 1.1 billion from the sale of marijuana products and the tax collected from the sale of these products is diverted into specific community development projects such as the construction of schools and infrastructure development, which is anticipated to improve the overall economy of the region.”