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Survey: Investors and Advisors Continue Move to Defensive Investments

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After three consecutive financial quarters punctuated by market volatility, investors and advisors are taking a reserved approach to investing in Q4 2019, placing a greater emphasis on traditionally defensive asset classes like precious metals, according to the fourth-quarter 2019 Advisor and Investor Sentiment Surveys (“Q4 Surveys“) from Horizons ETFs Management (Canada) Inc. (“Horizons ETFs“).

Every quarter, Horizons ETFs surveys investment advisors and investors for their outlook on expected returns for 14 distinct asset classes. These expectations are expressed in terms of bullish, bearish or neutral sentiment. The Q4 Surveys cover the period beginning September 30, 2019, and ending December 31, 2019.

Canadian and U.S. Equities

With Canadian equity indices posting stronger average returns than U.S equities over Q3 2019, as represented by S&P 500® Index and the NASDAQ-100® Index, advisors are signaling growing confidence on investing in Canada.

Advisors registered a strong 8% increase on bullishness toward the S&P/TSX 60™ Index, as well as a 3% growth in bullishness on Canada’s banks, as represented by the S&P/TSX Capped Financials™ Index.

Investors similarly found greater confidence, increasing their optimism on the S&P/TSX Global Gold™ Index by 4% to an overall 60% bullishness weighting. However, both advisors and investors lost faith in Canadian energy, as represented by the S&P/TSX Capped Energy™ Index, amid a weak -2.15% performance in Q3 2019.

“While sentiment on Canadian equities has improved, Canadian advisors and investors are still skeptical of the growth of Canadian equities, particularly in comparison to U.S. equities,” said Steve Hawkins, President and CEO of Horizons ETFs. “The outcome of the upcoming federal election will likely weigh heavily on advisor sentiment and we could see substantial changes in sentiment next quarter depending on the outcome.”

Expectations south of the border have waned following tepid performances from the S&P 500 and NASDAQ-100, which posted returns of 1.70% and 1.29%, respectively, in Q3 2019. While still overall bullish, Advisors withdrew -8% from their overweight bullishness on the S&P 500 and -9% from the NASDAQ-100.  Investors also cooled on the two major U.S. indices but by a marginal -1% on each.

“One of the U.S. equity stories of 2019 is the volatility that the ongoing trade war with China has wrought on performance,” said Mr. Hawkins. “Major gains – and losses – have been made possible on the back of a single tweet. Despite this, U.S. equities are on pace to finish the year with impressive double-digit returns, which likely explains why these stocks remain somewhat favorable with advisors despite the decline in sentiment.”

Defensive Assets Find Favour

Gold and silver, as represented by the spot prices of Gold Bullion and Silver Bullion, has continued a significant upward sentiment trend since Horizons ETFs’ Q1 2019 survey, conducted in December 2018.

In Q1 2019, advisors were 35% bullish on Gold Bullion, in near-equal weighting to the neutral and bearish sentiment shared. Since then, advisor preference for the precious metal has risen 23%, with silver following at a strong 17%.

On the investor side, confidence in gold and silver has been steady throughout 2019, with an outlook towards gold holding near or over 50% bullishness throughout the year. Silver has similarly held a bullish position with investors from Q1 to Q4 2019 among investors, concluding the year at 50% bullishness. Looking at Q4 2019, investors registered 60% bullishness on gold – their highest rating, alongside  the S&P/TSX Global Gold™ Index.

“Amid the rise of cryptocurrencies and alternative investments, Gold is and will remain, a defensive standard for investors,” said Mr. Hawkins. “Its growth in popularity over 2019 is a reaction to a volatile marketplace and deflationary pressures, where investors are seeking a solid, tangible asset to provide some protection in their portfolio.”

After sentiment fell to outright bearish lows, outlook for fixed income, as represented by the Solactive US 7-10 Year Treasury Bond Index is growing following a 2.73% Q3 2019 performance. From a previous 16% bullishness, dwarfed by 48% bearishness on the asset class, advisors have increased their bullish confidence to 29% – putting it on equal standing as bearish skeptics. In contrast, investors have waned further, signaling a -5% pullback on an already bearish footing.

Natural Gas and Crude Oil

Investors and advisors both registered a bullish growth on natural gas in-line with the transition into its seasonally strong period. Advisors became bulls, awarding the commodity 10% greater confidence, while investors followed suit with a 9% increase in confidence.  Futures on Natural Gas saw a modest uptick in performance at 0.95% during Q3 2019.

While still outright bullish, amid a -7.53% rout by Crude Oil, both advisors and investors withdrew some support for the fuel source. Investors withdrew by -4% while advisors retreated by -9%.

“Following the attacks on Saudi Arabia’s Aramco production facilities in September, there was some expectation that reduced supply would boost oil prices – but that wasn’t the case,” said Mr. Hawkins. “Greater U.S. domestic production and faster-than-expected repairs have meant crude oil has not been constrained, to the delight of those at the pump and the disappointment of some speculative oil traders.”

Marijuana Loses its Buzz

After hemorrhaging -36.07% in performance over Q3 2019, the cannabis sector, as represented by the North American Marijuana Index, registered the biggest confidence drop of the asset classes among investors, at -15%.

Despite the steep sentiment tumble, investors are still bullish on marijuana, with bulls edging out the bears at 43% to 39%. For investors, marijuana was also the least likely to have neutral sentiment provided, among the 14 asset classes measured.

Since the Q3 2019 survey, advisors have been overall bearish on the pot stocks index, with the trend continuing in to Q4 2019. Bearish sentiment increased 3% to 42%.

“While there are some that are decrying the ‘marijuana moment’ over, there is a silver lining to these significant sector declines, and that is valuations are now more aligned with fundamentals, establishing a more balanced entry point for investing in cannabis,” said Mr. Hawkins.

 

SOURCE Horizons ETFs Management (Canada) Inc.

Cannabis

Cannabis Testing Market Worth $4.0 billion | MarketsandMarkets™

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cannabis-testing-market-worth-$4.0-billion-|-marketsandmarkets™

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.

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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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