by Owing to the psychoactive properties of cannabis, federal and state regulators have enforced strict guidelines such as establishing THC concentration limits, screening for contaminants like molds, pesticides and heavy metals. Ensuring accuracy and consistency through rigorous testing has become crucial for cultivators and product manufacturers.
The Global Cannabis Testing Services Market is estimated to be valued at US$ 2.16 Bn in 2024 and is expected to exhibit a CAGR of 18% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the US Cannabis Testing Servicesmarket Size are Twist Bioscience Corporation, GenScript Biotech Corporation, Eurofins Scientific SE, and Thermo Fisher Scientific Inc.
The legalization of medical and adult-use cannabis across several US states presents substantial opportunities for commercial testing laboratories to support a rapidly growing industry. Laboratories are expanding capabilities to achieve multi-parameter testing requirements and develop new technologies like advanced genetic screening.
Major cannabis testing labs are actively pursuing international expansion plans to capitalize on opportunities emerging across Canada and European nations pursuing legalization. Several small and medium labs are being acquired by larger testing chains and cannabis companies seeking vertical integration.
Market drivers
Stringent regulations mandate extensive analytical testing at multiple stages of cultivation and production which is driving high demand for cannabis compliance testing services. State tracking systems require laboratories to test for terpenes and cannabinoid potency profiles while also screening for toxins, bacteria and pathogens. This ensures product quality and safety as the industry continues scaling operations commercially.
PEST Analysis
Political: The cannabis industry is regulated differently in each US state. Some states have legalized medical and recreational use while others have only legalized medical or still prohibit use altogether. This fragmented regulatory environment creates challenges.
Economic: As more states legalize cannabis, the market is growing significantly which is attracting more funding, businesses and jobs to the industry. However, economic uncertainty could potentially slow industry growth.
Social: Attitudes toward cannabis are becoming more accepting as its medicinal uses become clearer. However, some are still uncomfortable with its recreational use. Public opinion may influence future legalization efforts.
Technological: Advanced analytical instrumentation and software are driving innovation in cannabis testing. Labs use spectroscopy, chromatography, and software to analyze cannabinoid profiles, detect contaminants, and ensure consistency and compliance. New technologies continue to enhance testing capabilities and efficiency.
Geographic Concentration
The largest markets by value are currently California, Colorado, Washington and Oregon where recreational and/or medical use has been legal the longest. These western states accounted for over 60% of the total US market value in 2024.
Fastest Growing Region
The northeast region of the US is expected to experience the fastest market growth through 2031. Several states like New York, New Jersey, Connecticut and Rhode Island have recently legalized medical or adult-use programs. As these new markets develop robust supply chains and increase consumer acceptance, the northeast will see strong growth rates outpacing other regions. However, the overall market size will still be largest in western states for the foreseeable future.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
