February 22, 2024

The US Cannabis Testing Services Market Is Expected To Be Flourished By Increasing Legalization Of Cannabis

Cannabis testing services play a vital role in ensuring the quality and safety of cannabis products. Various testing types such as terpene profiling, heavy metal testing, microbial analysis, pesticide screening, residual solvent analysis, and potency testing are performed to analyze cannabis and cannabis-derived products. The testing helps producers formulate consistent products, and also ensures compliance with regulatory standards. The market comprises testing laboratories that provide analytical testing as well as firms offering consulting services, staffing, and software solutions. Increasing legalization of medical and recreational cannabis across various U.S. states has boosted the demand for quality-control testing of these products over the years.

The global Us 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 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Increasing legalization of cannabis (as referred from heading): Greater legal acceptance of cannabis for medical and recreational use across several U.S. states has spurred market growth for cannabis testing services. As of 2022, 19 states have legalized recreational use of marijuana for adults, while 38 states have approved medical cannabis programs. This has translated into higher product demand that needs to be tested for safety and potency. Furthermore, regulations regarding lab testing and certification have become stringent with legalization, necessitating extensive quality checks by licensed laboratories. These factors are driving the need for professional cannabis testing services.

With a growing number of market entrants, competition in the cannabis industry is rising simultaneously. Players are focusing on product differentiation based on testing parameters to gain an edge over others. This has pushed the demand for advanced analytical techniques and multi-parameter testing. Moreover, the introduction of novel product forms such as concentrates, edibles, and topicals has created the need for customized testing procedures. The market is also witnessing increased collaboration between testing laboratories and cannabis product manufacturers to ensure compliance. These trends are favoring the market expansion.

 

Segment Analysis

The US Cannabis Testing Services market is dominated by the potency testing segment. Potency testing, which accounts for over 35% market share, ensures that cannabis products contain the accurate level and quantities of cannabinoids like THC and CBD as indicated on labels. This is an important requirement to meet federal and state regulations.

PEST Analysis

Political: Cannabis remains illegal under federal law in the US despite states legalizing medical and/or recreational use. However, a bipartisan bill may lead to decriminalization.

Economic: Growing legal cannabis market size provides opportunities for testing services to ensure product safety and purity. Rising consumer incomes allow for discretionary spending on cannabis products.

Social: Increased social acceptance of medical cannabis use for conditions like chronic pain drives demand. However, stigma still exists around recreational use.

Technological: Advances in analytical techniques allow for accurate detection of contaminants and cannabinoid profiles. Testing labs use tools like GC/MS and HPLC for detailed chemical analysis of cannabis samples.

Key Takeaways

The Global US Cannabis Testing Services Market Demand  is expected to witness high growth over the forecast period of 2024 to 2031 supported by the expanding legal cannabis market across multiple states.

 

Regional analysis:

 

The western region accounts for over 40% market share led by states like California and Colorado that have well established and sizable legal cannabis markets. These states have stringent testing regulations in place providing opportunities for laboratories. The Northeast region is also growing rapidly driven by legalization in states such as Massachusetts, New York and New Jersey.

Key players operating in the US cannabis testing services market are Twist Bioscience Corporation, GenScript Biotech Corporation, Eurofins Scientific SE, and Thermo Fisher Scientific Inc. These players offer a range of analytical testing services and use advanced technologies to detect contaminants, potency and comply with regulatory protocols.

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