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Cannabis, U.S. and Emerging Markets Lead Return to Advisor Confidence

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Canadian advisors and investors have signalled renewed bullishness on certain asset classes, including Cannabis, Emerging Markets and U.S. Equities, following stronger quarter-over-quarter market performance, according to the second quarter 2019 Advisor and Investor Sentiment Surveys (“Q2 Surveys“) from Horizons ETFs Management (Canada) Inc. (“Horizons ETFs“).

Horizons ETFs’ previous Q1 2019 surveys found that advisor and investor bullish expectations were hampered by late Q4 2018 volatility. After performance gains in Q1 2019 across the majority of indices that Horizons ETFs tracks, both advisors and investors were bullish on 10 of the 14 asset classes measured – but with mixed confidence in Canadian equities.

Every quarter, Horizons ETFs surveys investment advisors and investors for their outlook on their expected returns for 14 distinct asset classes. These expectations are expressed in terms of bullish, bearish or neutral sentiment. The Q2 Surveys cover the period beginning April 1, 2019 and ending June 30, 2019.

Cannabis Confidence Comeback

Cannabis sentiment among advisors and investors is reaching new highs once again, after a loss of confidence heading into Q1 2019.

Investors registered an overwhelming 70% bullishness in the Cannabis space – up 14% from the previous quarter. The bullish bounce-back comes after a 54.55% Q1 2019 return from the North American Marijuana Index – the best performance among indices tracked in the Q2 Surveys.

Advisors, who have traditionally signalled greater caution regarding the nascent sector, also pushed a bullish revival, increasing their support from 31% to 47% and wiping out their previous overall bearish position.

“It’s no surprise that volatility in sentiment towards the Cannabis sector mirrors its performance,” said Steve Hawkins, President and CEO of Horizons ETFs. “Many Cannabis companies have surged in 2019 – buoyed by revenue growth and growing legitimization. With growing global opportunities, including in the burgeoning U.S. Cannabis market, we expect that sentiment could continue to grow.”

Looking Beyond Canada

According to the Q2 Survey, both advisors and investors see opportunities outside of Canada, in U.S. Equities as well as Emerging Markets across the world.

Powerful Q1 2019 rallies following Q4 2018 volatility in U.S. Equities, as represented by the S&P 500® Index and the NASDAQ-100® Index, have led advisors to double-down on their American resolve. Advisors indicated their highest confidence in the NASDAQ at 67% bullishness, following a 16.57% growth in the NASDAQ’s performance. While sentiment on the S&P 500 fell 5%, at 62%, it still registered as the sector with the third-highest positive outlook among advisors.

Investors boosted their take on the NASDAQ to 54%, from a previous 41% in the Q1 Survey, then nearly equally matched by a 40% bearish outlook. On the S&P 500, investors shrugged off much of their negative sentiment and reallocated it to neutral and bullish positions; with the latter accounting for nearly half of the overall outlook.

On the fixed income side, investors and advisors are still unsure what to make of the U.S. 7-10 Year Bond Index, despite a 2.85% performance climb. Both are overwhelmingly neutral on the benchmark, but while investor bearishness outpaces the bulls, advisors saw reason to grow their bullish outlook past the bears, by a margin of 5%.

Emerging Markets, as represented by the MSCI Emerging Market Index, saw substantial growth in bullish sentiment from both advisors and investors. After a 9.91% performance gain in Q1 2019, advisors increased their positive outlook by 18% to an overall 66% bullish rating – the largest percentage change of opinion among advisors of any of the tracked indices. Investors were bullish too, but not nearly as much as their advisor counterparts: bullish sentiment among investors increased 8% to 45%, which still fell several percentage points short of the previous Q1 Survey mark for advisors.

Market trends in Q1 appeared very similar to early 2018, with Canadian advisors showing a strong preference for U.S. and international equities relative to Canadian equities. China was one of the strongest-performing equity markets of the first quarter, as concerns about trade tariffs dissipated,” said Mr. Hawkins. “A big reason for the resurgence in the U.S. equities could be due to the resurgence in technology stocks. We can see that advisors are strongly favouring the tech-heavy NASDAQ-100 vs. the broader S&P 500 Index.”

Cautious but Committed on Canadian Equities

Despite positive performance on all of the tracked Canadian Equity indices, sentiment was still mixed in the Q2 Surveys, suggesting that advisors and investors are still not aligned on the potential trajectory of Canada’s economy.

With a 12.54% return, the S&P/TSX 60™ Index was the best-performing Canadian Equity metric in Q1 2019. While investors responded with a 7% boost to bullish sentiment, advisors were not convinced – downgrading their position by 7%, to a 50% bullish weighting.

Both advisors and investors signalled weakened confidence in Canadian Banks, as represented by the S&P/TSX Capped Financials™ Index. While investor conviction saw a minor erosion of 6%, advisors’ faith in the sector ruptured significantly, falling 14%. Both updates put bullish and bearish sentiment into nearly equal contention.

Canada’s Energy sector, as represented by the S&P/TSX Capped Energy™ Index rebounded by 12.19% in Q1 2019, following a critical 28.02% drop in Q4 2018. While sentiment in the Energy sector increased by 8% for investors, it grew marginally for advisors at 3%. Both were still ultimately bullish on the sector.

Despite contrary sentiment movements on the Canadian dollar vs. the U.S. dollar, both advisors and investors are downright bearish on the loonie, with investors registering triple the bearish sentiment compared to advisors.

“While Canadian indices mostly recovered their late 2018 losses in Q1 2019, investors are still hesitant to rush back into Canadian staples, like Financials and Energy,” said Mr. Hawkins. “If we continue to see strong performance from Canadian Financial and Energy stocks, we might see more advisors and investors changing their view on the Canadian market in the next survey.”

Energy and Materials

Compared to the leading 21.16% performance hike in Q4 2018, gold miner growth, as represented by the S&P/TSX Global Gold™ Index was more subdued in Q1 2019, eking out a 4.98% jump. Investors and advisors took that result differently – while advisors saw fit to move out of a bear position and award a 10% bullish sentiment rating to the sector, investor opinion dropped 8% but still held a firm bullish outlook.

Both investors and advisors were virtually unchanged on Crude Oil One-Month Futures, with just a single percentage point drop in bullish sentiment and still overall confident in its performance.

Natural gas was subjected to a greater rout, with investors withdrawing bullish approval by 12% to a 33% bear rating. Advisors are even more bearish – shifting from a neutral outlook to a 45% bearish sentiment.

Amid volatility, we saw precious metals become a place of refuge from the storm for investors last quarter,” said Mr. Hawkins. “With a bounce-back in the markets, gold standard stability has been traded in for equity performance. Seasonal declines on natural gas were expected and quarter-over-quarter, global demand for crude oil means this is a commodity where investors still see strength.”

 

SOURCE Horizons ETFs Management (Canada) Inc.

Cannabis

Cannabis Testing Market Worth $4.0 billion | MarketsandMarkets™

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CHICAGO, May 23, 2024 /PRNewswire/ — Cannabis Testing Market in terms of revenue was estimated to be worth $1.8 billion in 2024 and is poised to reach $4.0 billion by 2029, growing at a CAGR of 17.2% from 2024 to 2029 according to a new report by MarketsandMarkets™.

The important factors impacting market growth are legalization trends and rising medical applications for cannabis. Rising approvals for medical and recreational cannabis drive the regulations requiring product safety testing which in turn fuel the need for cannabis testing services. Additionally, the rise in the number of cannabis testing labs due to legalization is propelling the demand for analytical instruments is likely to uplift market growth in coming years.

Download an Illustrative overview: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=46932450

Browse in-depth TOC on “Cannabis Testing Market”
439 – Tables
52 – Figures
378 – Pages

Cannabis Testing Market Scope:

Report Coverage

Details

Market Revenue in 2024

$1.8 billion

Estimated Value by 2029

$4.0 billion

Growth Rate

Poised to grow at a CAGR of 17.2%

Market Size Available for

2022–2029

Forecast Period

2024–2029

Forecast Units

Value (USD Billion)

Report Coverage

Revenue Forecast, Competitive Landscape, Growth Factors, and Trends

Segments Covered

By Product & Software, By Service & By End User

Geographies Covered

North America, Europe, the Asia Pacific, Latin America and the Middle East & Africa

Report Highlights

Updated financial information / product portfolio of players

Key Market Opportunities

Untapped markets in emerging economies

Key Market Drivers

Increasing legalization of medical and recreational cannabis

Products segment held the highest estimated share of the cannabis testing market.

Based on product & software, the cannabis testing market is segmented into products (analytical instruments {chromatography instruments [liquid chromatography, gas chromatography & other chromatography instruments], spectroscopy instruments [mass spectrometry instruments & atomic spectroscopy instruments] & other analytical instruments} and consumables {chromatography columns, standards and CRMS, sample preparation products and other consumables) and software. The product segment accounted for the largest share of the cannabis testing market in 2023. Market growth is driven by technological advancements providing sophisticated tools for precise analysis, ensuring compliance and quality control, and the expanding legalization of cannabis products. Additionally, increasing requirements for potency labeling and pesticide screening fuel the demand for specialized consumables, further propelling growth in the cannabis testing market. For example, Thermo Fisher Scientific Inc. launched the Thermo Scientific SureSTART consumables portfolio consisting of vials, well plates, caps, inserts, kits, and mats to improve analytical performance and sample security for chromatography and mass spectrometry users in routine and research labs in clinical, food, pharma, biopharma, environmental, and academic sectors.

High growth of services segment attributed to potency testing services.

Based on service, the cannabis testing market is broadly segmented into terpene profiling, microbial analysis, residual solvent analysis, potency testing, heavy metal testing, pesticide screening, and other services. In 2023, potency testing accounted for the largest share of the cannabis testing services market. The high growth of this segment is due to stringent regulatory requirements ensuring accurate THC and CBD levels. This is crucial for product labeling, consumer safety, and compliance, driving demand from producers and dispensaries seeking to meet legal standards and provide reliable, high-quality products.

Services take away the largest estimated share of the end-user segment.

Based on end users, the cannabis testing market is classified into segmented into product & software end users (cannabis testing laboratories {small-scale laboratories, medium-scale laboratories, large-scale laboratories} and research institutes) and service end users (cannabis drug manufacturers & dispensaries, cannabis cultivators/growers). In 2023, the service end users’ segment was predicted to account for the highest share of the global cannabis testing market. The large share of this end user segment is due to the rising consumer awareness of quality and safety, rising legalization of cannabis, stringent regulatory standards, and technological advancements in cannabis testing.

During the forecast period, North America displayed lucrative market growth.

North America accounted for the largest share of 65.5% of the cannabis testing market in 2023. The North American market is projected to reach a value of USD 2.6 billion by 2029 from an estimated value of USD 1.2 million in 2024, at a CAGR of 17.3% during the forecast period. The region leads the cannabis testing market due to stringent regulatory standards, robust infrastructure, and widespread legalization of cannabis for medical and recreational purposes. Additionally, North America’s advanced R&D capabilities and evolving consumer demand for quality assurance drive its prominence in this growing sector.

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Cannabis Testing Market Dynamics:

Drivers:

  1. Increasing legalization of medical and recreational cannabis
  2. Increasing use of cannabis for medicinal applications
  3. Technological advancements in testing technologies

Restraints:

  1. Lack of standardization
  2. Investment risks due to regularization

Opportunities:

  1. Untapped markets in emerging economies
  2. Research collaborations

Challenge:

  1. High setup costs

Key Market Players of Cannabis Testing Industry:

The global cannabis testing market comprises many key market players competing for markets shares like Agilent Technologies, Inc. (US), Shimadzu Corporation (Japan), Thermo Fisher Scientific Inc. (US), Danaher Corporation (US), Waters Corporation (US), Restek Corporation (US), SGS SA (Switzerland), Merck KGaA (Germany), PerkinElmer, Inc. (US), Hamilton Company (US), Sigma Analytical Services (Canada), SC Labs (US), PharmLabs LLC (US), MCS, Inc. (US), ProVerde Laboratories (US), and Eurofins Scientific (Luxembourg).

The primary interviews conducted for this report can be categorized as follows:

  • By Respondent: Supply Side- 70%, and Demand Side – 30%
  • By Designation (Supply Side): Managers – 45%, CXOs & Directors – 30%, Executives- 25%
  • By Region: North America -40%, Europe -25%, Asia-Pacific -20%, Latin America -10%, MEA- 5%

Recent Developments:

  • In September 2023, Shimadzu Corporation launched the Brevis GC-2050 gas chromatograph used in various applications including cannabis testing.
  • In April 2023, SC Labs, one of the leading cannabis testing companies, acquired C4 Laboratories, one of the first Arizona cannabis labs, thus allowing it to be licensed and accredited in five states: California, Colorado, Michigan, Oregon, and Arizona.
  • In June 2022, Shimadzu Corporation launched the AA-7800 series atomic absorption spectrophotometers. The AA-7800 series is used for quality control in the raw material, food, and for inspecting water quality and hazardous substances in soil thus presenting an advantage in heavy metal testing of cannabis.

Get 10% Free Customization on this Report:
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Cannabis Testing Market – Key Benefits of Buying the Report:

The report will help market leaders/new entrants by providing them with the closest approximations of the revenue numbers for the overall cannabis testing market and its subsegments. It will also help stakeholders better understand the competitive landscape and gain more insights to better position their business and make suitable go-to-market strategies. This report will enable stakeholders to understand the market’s pulse and provide them with information on the key market drivers, restraints, opportunities, and challenges.

The report provides insights on the following pointers: 

  • Analysis of key drivers (increasing legalization of medical and recreational cannabis, increasing use of cannabis for medicinal applications and technological advancements in testing technologies), restraints (lack of standardization and investment risks due to regularization), opportunities (untapped markets in emerging economies and research collaborations) and challenges (high setup costs) are influencing the growth of cannabis testing market.
  • Product Development/Innovation: Detailed insights on newly launched products of the cannabis testing market.
  • Market Development: Comprehensive information about lucrative markets – the report analyses the cannabis testing market across varied regions.
  • Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the cannabis testing market.
  • Competitive Assessment: In-depth assessment of market shares, growth strategies, and product offerings of leading players include Agilent Technologies, Inc. (US), Shimadzu Corporation (Japan), Thermo Fisher Scientific Inc. (US), Danaher Corporation (US), Waters Corporation (US), Restek Corporation (US), SGS SA (Switzerland), Merck KGaA (Germany), PerkinElmer, Inc. (US), Hamilton Company (US), Sigma Analytical Services (Canada), SC Labs (US), PharmLabs LLC (US), MCS, Inc. (US), ProVerde Laboratories (US), and Eurofins Scientific (Luxembourg) among others in the cannabis testing market.

Related Reports:

Drug Screening Market – Global Forecasts to 2029

Laboratory Proficiency Testing Market – Global Forecasts to 2028

Life Science Instrumentation Market – Global Forecasts to 2028

Digital PCR Market – Global Forecasts to 2028

Flow Cytometry Market – Global Forecasts to 2028

Get access to the latest updates on Cannabis Testing Companies and Cannabis Testing Industry Growth

About MarketsandMarkets™:

MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.

MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.

Earlier this year, we made a formal transformation into one of America’s best management consulting firms as per a survey conducted by Forbes.

The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.

Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.

To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.

Contact:
Mr. Aashish Mehra
MarketsandMarkets™ INC.
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Solei Brand Introduces New Cannabis-Infused ‘Warming Deep Tissue Stick’

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Medical Cannabis Market Report 2024-2030: Asia-Pacific Set to Witness Robust Growth, Driven by R&D Discovery Initiatives

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