U.S. Cannabis Testing Market Size By Technology (Chromatography {Liquid Chromatography, Gas Chromatography}, Spectroscopy {Mass Spectrometry, Atomic Spectroscopy}), By Test Type (Potency Testing, Pesticide Screening, Residual Solvent Screening, Heavy Metal Testing, Terpene Testing, Mycotoxin Testing), By Service Provider (Laboratories, Research Institutes, Manufacturers), Industry Analysis Report, Zonal Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Jan 2020  |  Report ID: GMI4481  |  Authors: Sumant Ugalmugle, Rupali Swain

Report Format: PDF   |   Pages: 226   |   Base Year: 2019

Summary Table of Contents Industry Coverage Methodology

U.S. Cannabis Testing Market Trends

Cannabis, also known as marijuana, is a drug obtained from the cannabis family of plants. The plant has psychoactive and analgesic compounds, which show certain medical applications. The presence of tetrahydrocannabinol (THC) attributes to the psychoactive properties of the drugs, and the chemical offers symptomatic relief to the patients suffering from chronic pain.

U.S. Cannabis Testing Market

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THC is used in medical conditions such as chronic pain, nausea, depression, muscle spasticity, and reduced appetite. Cannabidiol (CBD) produces pain relief without psychoactive effects and is used to treat seizures, inflammation, chronic pain, depression and psychotic disorders. Several states in the U.S. have legalized the use of medical cannabis and regulated cannabis testing, starting with California in 1996.

As growing number of states legalize medical marijuana, the government seeks to regulate and standardize the product to ensure patient safety. In order to ensure this, various state regulatory agencies have mandated the testing of marijuana to meet certain quality standards. Furthermore, medical marijuana is used as a therapeutic drug and patients may have weakened immune systems, increasing their susceptibility to infections. This creates a need to ensure strict quality standards and absence of foreign substances.

Cannabis testing includes testing for presence of heavy metals, pesticides and residual solvents to safeguard patient health. However, as cannabis is still classified as a class I drug by the federal government, there are no federal guidelines for cannabis testing. Furthermore, the guidelines and standards vary from state to state, which creates a challenge in the U.S. cannabis testing industry. Therefore, there is a need for the federal government to establish a uniform quality control mechanism to increase patient safety and regulate the market.

U.S. Cannabis Testing Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: 629.3 Million (USD)
Historical Data for: 2015 to 2019 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 10.3% 2026 Value Projection: 1,249.2 Million (USD)
Pages: 226 Tables, Charts & Figures: 386
Geographies covered (26): Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, New Jersey, New York, Pennsylvania, Illinois, Michigan, Delaware, Florida, Maryland, Washington D.C., Minnesota, Alaska, California, Hawaii, Oregon, Washington, Arizona, Colorado, Nevada, New Mexico, Montana
Segments covered: Technology, Test Type, Service Provider and Zone
Companies covered (10): Anresco, CannaSafe, Collective Wellness of California (CW Analytical Laboratories), Digipath, Inc., EVIO, Inc., Iron Laboratories, Pure Analytics LLC, PSI Labs, SC Labs, Inc, Steep Hill, Inc.
Growth Drivers:
  • Growing legalization pertaining to the use of cannabis across various U.S. states
  • Rigorous regulatory requirements implemented by authorities to ensure superior quality products
  • Rise in the number of testing laboratories and increasing cultivators of marijuana
Pitfalls & Challenges:
  • Lack of uniform testing standards
  • High cost of setting up a cannabis testing

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Rigorous government regulations will propel the industry growth

As growing number of states legalize or decriminalize the use of medical marijuana, the medical cannabis industry will show an upward trajectory. However, the number of emergency room visits increased after legalizing cannabis, prompting the government to impose regulatory measures to ensure patient safety.

As the demand for medical marijuana increases, the number of marijuana growers will increase. This will positively augment the U.S. cannabis testing market demand as the number of medical cannabis testing companies increases. Hence, the aforementioned factors will positively influence the market growth.

Increasing investments in cannabis research will fuel the industry growth

Although there has been significant research in the field of medical marijuana market, the field is still relatively new. Therefore, the investment in medical marijuana research continues to increase as new avenues of therapy are discovered. As the number of research studies and clinical trials increases, the demand for standardized medical cannabis will increase, leading to market growth.

Thus, the number of companies providing testing services will rise to accommodate the market demand. Thus, above mentioned factors will foster the U.S. cannabis testing industry over the forecast timeframe.

High set up costs of opening a cannabis testing laboratory will restrict the U.S. cannabis testing market growth in the short run. For instance, the average cost of a high performance liquid chromatography (HPLC) instrument is about USD 30,000 to 35,000.

Moreover, high maintenance cost and expensive consumables such as columns and solvents will inhibit the market growth. Furthermore, there is a lack of uniform testing standards and the guidelines vary across states. These laws define different limits for possession, posing a significant challenge for testing laboratories to perform a quality assessment. Thus, high cost of operating a testing lab coupled with a lack of uniform guidelines will hinder the market expansion.

Fast and effective results to make chromatography testing the star segment

U.S. Cannabis Testing Market Size

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By testing technology, the U.S. cannabis testing market size is segmented into chromatography, spectroscopy and others. The chromatography market is further classified into liquid, gas, and other chromatography types. The spectroscopy segment is further bifurcated into mass and atomic spectroscopy.

The chromatography market will show a CAGR of 10.4% throughout the forecast period. Advantages of chromatography techniques such as fast and effective results will contribute to segmental growth. Furthermore, manufacturers are focusing on chromatographic solutions, specifically for marijuana testing. Therefore, these factors will positively impact the market expansion.

Heavy metal testing segment to have lucrative growth over the forecast period

By testing type, the U.S. cannabis testing market is segmented into potency testing, pesticide screening, residual solvent screening, heavy metal testing, terpene testing, mycotoxin testing and others. Heavy metal testing segment held a market share of 17.5% in 2019 and will show lucrative growth over the analysis timeframe.

Heavy metal testing includes inspection of cannabis sample for presence of heavy metals such as mercury, lead, and cadmium. These metals are extremely toxic to the human body, even in small amounts, especially when inhaled.

Marijuana is an excellent bioremediator and can soak up large amounts of substances from the ground. Furthermore, increasing amounts of heavy metals in the ground due to industrial processes, makes heavy metal testing imperative. Hence, the above factors will result in market growth.

Stringent government regulations will positively boost the laboratories segment

By service provider, the U.S. cannabis testing market is segmented into laboratories, research institutes, manufacturers, and others. The cannabis testing laboratories segment held a market revenue of USD 492.5 million in 2019.

Increasing legalization of cannabis for medical use will positively impact the U.S. cannabis testing laboratories market. Furthermore, stringent regulations by authorities to ensure consumer safety and product quality will boost the cannabis testing laboratories industry growth in the future.

Pacific Central will dominate the overall market

Pacific Central Cannabis Testing Market

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The Pacific Central market held about 45% market share in 2019 and will continue to be on an upward growth trajectory during the forecast years. Presence of large number of cannabis patients in states such as Alaska, Hawaii, and California will foster the market growth. These states have approved the use of medical marijuana leading to a rise in number of medical marijuana providers.

California was the first U.S. state to legalize marijuana, moreover majority of medical patients reside in California. This will propel the demand for medical marijuana in the region. Growing number of medical marijuana producers will spur the demand for testing, propelling the market growth.

Increased service portfolio and partnerships will be key growth strategies by market players

Major companies in the U.S. cannabis testing market share include Anresco, CannaSafe, Collective Wellness of California, Digipath Inc, Evio Inc, Iron laboratories and Pure Analytics LLC. These industry players are using various strategies such as expanding their service portfolio, partnerships and geographical expansion to increase market share and customer base.

Recent industry developments:

  • In May 2019, EVIO, Inc. announced the strategic partnership with Gexin Analytics Labs to complete the buildout and operation of EVIO Labs Costa Mesa. This strategy assisted the company to deliver analytical testing services throughout California and strengthen its market position.
  • In March 2018, Steep Hill announced its partnership with Green Analytics East to expand its business to New Jersey. This partnership was aimed at geographical expansion and strengthening the overall industry presence.

The U.S. cannabis testing market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026, for the following segments:

By Technology, 2015 – 2026 (USD Million)

  • Chromatography
    • Liquid chromatography
    • Gas chromatography
    • Others
  • Spectroscopy
    • Mass spectroscopy
    • Atomic spectroscopy
  • Others

By Test Type, 2015 – 2026 (USD Million)

  • Potency testing
  • Pesticide screening
  • Residual solvent screening
  • Heavy metal testing
  • Terpene testing
  • Mycotoxin testing
  • Others

By Service Provider, 2015 – 2026 (USD Million)

  • Laboratories
  • Research institutes
  • Manufacturers
  • Others

 The above information is provided for the following regions of the U.S.:

  • North East
    • Connecticut
    • Maine
    • Massachusetts
    • New Hampshire
    • Rhode Island
    • Vermont
    • New Jersey
    • New York
    • Pennsylvania
  • East North Central
    • Illinois
    • Michigan
  • South Atlantic
    • Delaware
    • Florida
    • Maryland
    • Washington DC
  • West North Central
    • Minnesota
  • Pacific Central
    • Alaska
    • California
    • Hawaii
    • Oregon
    • Washington
  • Mountain States
    • Arizona
    • Colorado
    • Nevada
    • New Mexico
    • Montana


Frequently Asked Questions (FAQ) :

The market size of U.S. cannabis testing exceeded USD 629.3 million in 2019.
The industry share of U.S. cannabis testing is poised to grow at over 10.3% CAGR between 2020 and 2026.
The cannabis testing demand in United States was valued over USD 629 million in 2019 and the industry is projected to grow at more than 10.3% CAGR through 2026.
The heavy metal cannabis testing segment held a market share of 17.5% in 2019 and will show lucrative growth over the analysis timeframe.
The cannabis testing laboratories segment in U.S. held a market revenue of USD 492.5 million in 2019, says a GMI report.
The Pacific Central was leading the industry growth, which was 45% of the overall market share in 2019.

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Premium Report Details

  • Published Date: Jan 2020
  • Pages: 226
  • Tables: 373
  • Charts / Figures: 13
  • Companies covered: 10
  • Countries covered: 26

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