Australia Medicinal Cannabis Testing Market Size & Share Analysis - Growth, Trends, And Forecasts (2024 - 2029)

Australia Medicinal Cannabis Testing Market Analysis

The Australia Medicinal Cannabis Testing Market size is estimated at USD 112.39 million in 2024, and is expected to reach USD 280.82 million by 2029, growing at a CAGR of 20.10% during the forecast period (2024-2029).

The medicinal cannabis testing market in Australia has been growing significantly over the past few years due to the increasing demand for quality assurance in cannabis products. The Australian government legalized medicinal cannabis in 2016, which led to the establishment of a legal framework for the cultivation, production, and testing of cannabis for medical purposes. The Therapeutic Goods Administration (TGA) oversees the regulatory compliance of medical cannabis products, ensuring safety, efficacy, and quality. The Office of Drug Control (CDC) issues licenses for cultivation, production, and research, creating a need for rigorous testing to meet compliance standards. However, there is currently a lack of standardized testing procedures and protocols for medicinal cannabis in Australia, which can lead to inconsistencies in testing results.

The market is primarily driven by the increasing approvals for medicinal cannabis drugs in Australia. As of 2021, 39 organizations in Australia held licenses to extract and purify cannabis for medicinal use. For example, the Therapeutic Goods Administration (TGA) of Australia reported in December 2023 that from 2021 to 2023, annual approvals under the SAS-B scheme from the Therapeutic Goods Administration (TGA) ranged between 100,000 and 120,000. According to estimates from the Medicinal Cannabis Industry Australia (MCIA) in October 2021, production capacity is projected to reach approximately 188,000 kg of dried cannabis by 2030. This anticipated surge in production would likely boost the testing of medicinal cannabis, further propelling market growth.

The increase in cannabis-based prescriptions by healthcare practitioners is anticipated to drive the market. As per Medicinal Cannabis Industry Australia (MCIA), under a baseline scenario, by 2030, approximately 670,000 patients are expected to have access to medicinal cannabis. More than 130 different medicinal cannabis products have been prescribed to patients till now, as per the Department of Health, Australia. This includes a mix of medicines manufactured domestically and overseas. However, consultations suggest that very few TGA-licensed manufacturers are currently able to supply finished medicinal cannabis products for domestic patient consumption. As such, many domestic demands are met by products imported from relatively mature overseas manufacturers. These medicinal cannabis products can come in a variety of different forms. Most medicinal cannabis prescribed in Australia is purchased as an oil or a solution to be consumed orally. Other available products include dried cannabis flowers, vaporization products, capsules, sprays, cannabis floss, and sublingual wafers.

However, product affordability, clinical efficacy, and safety of medicinal cannabis products pose significant threats to the growth of the market.

Australia Medicinal Cannabis Testing Market Trends

The Potency Testing Segment is Anticipated to Hold a Major Share of the Market

Australia Medicinal Cannabis Testing Industry Segmentation

Medicinal cannabis products are manufactured and controlled as medicines in Australia. These medicinal cannabis products are used to treat epilepsy, palliative care, nausea and vomiting due to chemotherapy, multiple sclerosis (MS), and chronic non-cancer pain. Nabiximols (Sativex) and cannabidiol (Epidyolex) are approved drugs used for specific clinical conditions in Australia. Other unapproved medicinal cannabis products are also available in Australia. The medicine prescribers can prescribe unapproved products if they consider them clinically appropriate for a patient. Prescribers are responsible for providing prescriptions according to relevant state and territory legislation and TGA approval.

The Australian medicinal cannabis testing market is segmented by product and software/service, service, and end user. By product and software/service, the market is segmented into analytical instruments, spectroscopy instruments, consumables, and cannabis testing software and services. By service, the market is segmented into potency testing, terpene profiling, residual solvent screening, heavy metal testing, mycotoxin testing, and other types, including nutrient analysis, stability testing, foreign matter inspection, and others. By end user, the market is segmented into laboratories, cannabis drug manufacturers, and other end users, including cannabis cultivators and producers, government agencies, and healthcare providers. By geography, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and South America. The report also covers the estimated market sizes and trends for 17 countries across major regions globally. The report offers the value (USD) for all the above segments.