February 22, 2024
Cannabis Testing Services Market

Cannabis Testing Services Industry is expected to be Flourished by Increasing Legalization of Cannabis

The global cannabis testing services industry involves testing of cannabis for product safety, potency analysis, pesticide screening, residual solvent testing, microbial analysis, and terpene analysis. Cannabis testing ensures product safety, consistency, and quality control. With the increasing legalization of cannabis across various countries and states, the demand for cannabis testing services is expected to increase significantly to ensure product safety and compliance with regulations. This represents a key growth opportunity for players operating in the cannabis testing services market.

The global Cannabis Testing Services Market is estimated to be valued at US$ 2,167.14 million in 2024 and is expected to exhibit a CAGR of 22.8% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

The global cannabis testing services market encompasses testing services offered for the cannabis industry which includes testing of both medical and recreational cannabis. These services test cannabis for potency, residual solvents, metals, pesticides, microbial testing and performs other types of analytical testing to ensure quality, consistency, and safety of cannabis products. With growing legalization and decriminalization of medical and recreational cannabis across many countries, the market for cannabis is witnessing strong growth creating demand for analytical testing services. This is expected to drive growth of the global cannabis testing services market during the forecast period.

Market Dynamics:

Increasing Legalization of Cannabis is expected to Drive Growth of Cannabis Testing Services Market

The increasing legalization of cannabis across various countries and states for both medical and recreational purposes is the primary driver of growth of the global cannabis testing services market. As the demand for legal cannabis increases, states are instituting strict regulations to ensure product quality and safety. Cannabis testing helps producers comply with these regulations by providing testing for potency, pesticides, heavy metals, and microbial contaminants. This will drive the demand for cannabis testing services.

Growing Cannabis Product Consumption is also expected to Fuel Market Growth

With legalization increasing, more people are consuming cannabis products either for medical or recreational purposes. This has led to growing consumption of cannabis products such as flowers, oils, edibles, and other derivatives. However, with new products entering the market regularly, there is a need to test these products for ensuring consistency, quality and safety of consumers. This rising consumption of cannabis products will thereby propel the demand for cannabis testing services over the forecast period.

Segment Analysis

The global cannabis testing services market is dominated by laboratory testing segment, which holds around 60% market share. Laboratory testing is considered the gold standard for cannabis testing as it provides accurate and reliable results through analytical instruments such as chromatography and spectroscopy. The laboratory testing segment is expected to continue dominating the market over the forecast period owing to increasing regulatory requirements for licensed cannabis producers to test their products regularly.

PEST Analysis

Political: Governments in several countries and U.S. states have legalized medical and recreational use of cannabis which has increased demand for cannabis testing services to ensure product safety and quality. However, political uncertainties still remain in some nations.

Economic: Legalization of cannabis in more countries and states is boosting the legal cannabis market size, thereby augmenting demand for ancillary services like testing. However, high initial investments and operating costs associated with laboratory equipment poses challenges.

Social: Increasing social acceptance of cannabis for medical use is driving market growth. However, social stigma still exists in some communities regarding use of cannabis.

Technological: Laboratories are focusing on developing testing methods using advanced analytical instruments like chromatography-mass spectrometry and residual solvent analysis to detect pesticides, heavy metals and provide potency analysis with high accuracy.

Key Takeaways

The Global Cannabis Testing Services Market Growth is expected to witness high over the forecast period due to increasing legalization of medical and recreational cannabis across countries and states. The global Cannabis Testing Services Market is estimated to be valued at US$ 2,167.14 million in 2024 and is expected to exhibit a CAGR of 22.8% over the forecast period 2024 to 2031.

North America currently dominates the market owing to early legalization in Canada and several U.S. states like Colorado and California. The North America region is expected to continue its dominance supported by increasing product demand and regular product testing requirements stipulated by regulatory bodies. The increasing product demand along with regulatory mandates by governments for licensed producers to conduct periodical safety and potency testing is fueling market growth in the region. Lifting of restrictions in more U.S. states is anticipated to further augment demand over the forecast period in North America.

Key players operating in the cannabis testing services market are B. Braun Melsungen AG, Fagron NV, PharMEDium Services, LLC, Baxter International Inc., Fresenius Kabi AG, Advanced Pharma, Inc., McGuff Compounding Pharmacy Services, Inc., Central Admixture Pharmacy Services, Inc., Institutional Pharmacy Solutions, LLC, Wedgewood Pharmacy, Medisca Inc., Dougherty’s Holdings, Inc., BioScrip, Inc. These players are focusing on developing technologically advanced testing capabilities and ramping up service offerings to tap into market opportunities.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it