by Cannabis testing services help ensure the safety and potency of cannabis products. Labs provide various testing services such as pesticide screening, residual solvent analysis, microbial screening, mycotoxin screening, heavy metal testing, and terpene profiling. With the growing legal cannabis market, testing has become increasingly important to ensure product quality and consumer safety.
The US Cannabis Testing Services Market is estimated to be valued at US$ 1.87 Bn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the major drivers for the cannabis testing services market is stringent regulations regarding cannabis safety and quality. With legalization in several states, regulators have implemented detailed safety and testing requirements for cannabis and related products to prevent contamination. For example, California requires cannabis products to be tested for presence of mold, pesticides, THC and CBD potency. This is driving up demand for qualified cannabis testing labs. Another driver is the growing number of cannabis formulations. With the rise of edibles, extracts, tinctures and other innovative products, extensive testing is required to check product viability and consistency. This is propelling the need for specialized testing services tailored to various cannabis products.
Segment Analysis:
The US Cannabis testing services market is dominated by the potency testing segment. Potency testing accounts for over 35% of the market share as it is mandatory for all types of cannabis products to mention the THC and CBD concentration on labels. The potency testing ensures accurate labeling and batch-to-batch consistency of cannabis products.
PEST Analysis:
Political: The cannabis market is continuously evolving with new state laws legalizing medical and recreational use. However, at the federal level it is still considered as schedule 1 drug.
Economic: The US cannabis testing services market size was valued at US$ 1.87 Bn in 2023 and is expected to grow exponentially with rising legal cannabis sales. As the market expands, requirement for comprehensive and accurate testing will also increase.
Social: Increasing social acceptance of cannabis for medical use is driving the growth. Awareness about quality assurance and safety is making testing essential among consumers.
Technological: Advancements in testing technologies like chromatography tools, spectroscopy equipment and biomarkers are helping labs to efficiently perform residual solvents screening, heavy metals testing, microbiological screening etc. Automation is improving productivity and turnaround times.
Key Takeaways:
The Global US Cannabis Testing Services Market Demand is expected to witness high growth, exhibiting 16% CAGR over the forecast period, due to increasing legalization of cannabis across various states and expansion of MediCinal and recreational programs. The Market Size for 2023 is US$ 1.87 Bn.
Regional analysis: Western states like California, Colorado and Washington dominate the US cannabis testing market currently. California alone accounts for over 40% of the market share due to the massive size of its cannabis industry. States with new legalization initiatives in the southeast and midwest region are projected to offer high growth opportunities during the forecast period.
Key players operating in the US Cannabis testing services market include Saskatchewan Research Council (SRC), SC Labs, Steep Hill, Inc., SGS Canada Inc., CW ANALYTICAL, PharmLabs, GreenLeaf Lab, Eurofins Scientific. These players are focusing on expansion of service portfolios and laboratory networks to tap into new business opportunities from cannabis regulatory bodies, cultivators, product manufacturers and dispensaries present across various geographies.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
