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U.S. Cannabis Testing Market size valued at USD 2 billion in 2020 and is estimated to grow at over 10.4% CAGR between 2021 and 2027. Increasing need of cannabis cultivators for testing and quality control of hemp products will spur the market growth.
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Various organizations provide accreditation to U.S. cannabis testing laboratories that perform analytical testing of hemp and cannabis-derived products. As testing of cannabis products is required for demonstrating the safety and efficacy of the products, thus, the growing need of cannabis testing will boost the number of laboratories providing cannabis testing services.
Report Coverage | Details |
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Base Year: | 2020 |
Market Size in 2020: | USD 2,012.7 Million |
Forecast Period: | 2021 to 2027 |
Forecast Period 2021 to 2027 CAGR: | 10.4% |
2027 Value Projection: | USD 4,182.9 Million |
Historical Data for: | 2016 to 2020 |
No. of Pages: | 290 |
Tables, Charts & Figures: | 366 |
Segments covered: | Technology, Test Type and Zones |
Growth Drivers: |
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Pitfalls & Challenges: |
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In few states of U.S. such as California and New York, the activities of cannabis testing continued during the COVID-19 closure or lockdown. This was done to perform cannabis testing for medical use as well as for treatment of COVID-19. Moreover, the effectiveness of cannabis extracts requires further large-scale validation and research are planning to perform more tests on their novel high Cannabidiol C. Sativa lines. For instance, the testing results also showed that the extracts could potentially be used in a mouthwash or “throat gargle” to prevent COVID-19 infection.
Growing demand for legalization of medical and adult use of cannabis will be the major factor driving the U.S. cannabis testing market revenue. Various government organizations and private players are recognizing the commercial and social importance of legalized medical and recreational cannabis. Moreover, various insurance companies are providing reimbursement for prescription of medical cannabis in states that have legalized the use of medical cannabis. For instance, the number of states in the U.S. that have legalized or decriminalized the use of medical marijuana has reached 36 as of November 2020. Similarly, 16 states across U.S. have either legalized or decriminalized the use of marijuana for recreational purposes.
Stringent regulatory and quality control standards are required for administering accurate and precise dose of cannabis for both medical and recreational purposes may hinder the industry expansion. However, there is a lack of uniformity in quality standards across various states. For instance, there are different laws and variations regulating the testing standard of cannabis in different states of the U.S. These state laws define different possession limit. Considerable difference in laws regulating the use of medical and adult use of cannabis pose a significant challenge for testing laboratories to perform the quality assessment of these products.
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The chromatography segment accounted for U.S. cannabis testing market share of 63.4% in 2020 due to various advantages associated with chromatography technique such as high sensitivity and ease of separation. Moreover, launch of technologically advanced equipment for performing various analytical and quality tests of cannabis will positively affect the chromatography segment growth. Furthermore, chromatography is generally used for testing potency of cannabis. The test ensures customer safety from harmful chemicals and contaminants. Thus, with growing demand of cannabis for medical and recreational use, new opportunities will arise for greater demand of such analytical instruments.
The pesticide testing segment size exceeded USD 390 million in 2020. Pesticides are one of the important group of substances that must be tested before using cannabis. The main objective of pesticide screening is to ensure the quality of cannabis products treated with pest control products. The screening or test should meet the requirements of the Pest Control Products Act and the Cannabis Act associated with the use of pest control products. The pesticide screening test is mandatory for the testing of unauthorized pest control products before the products could be sold or provided to the company. Furthermore, LC–MS is method of choice for pesticide analysis because of its selectivity, sensitivity, and ruggedness.
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Cannabis testing market revenue in Pacific Central zone was over USD 916.7 million in 2020 and is expected to witness growth of 8.2% through 2027 owing to growing number of testing laboratories in the zone. Additionally, presence of large number of cannabis patients in states such as Alaska, Hawaii, and California will further foster the market growth. Alaska & California have also approved the use of recreational marijuana leading to a rise in number of cannabis users. This will propel the demand for medical and recreational marijuana in the zone. Also, high demand for quality control and analytical testing of medical and adult-use cannabis in the Pacific Central zone will impel the market size expansion.
Notable players operating in the U.S. cannabis testing industry include Anresco, CannaSafe, Collective Wellness of California, Digipath, Inc, EVIO, Inc., PSI Labs, Steep Hill, Inc., SC Labs, Inc. Business expansion, product launch & approval and partnerships are the most adopted business strategies to sustain market competition.
Market, By Technology
Market, By Test Type
The above information is provided for the following zones and states: