The global cannabis testing services market was valued at approximately USD 1.8 billion in 2023 and is expected to grow to USD 5.39 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 17.21% from 2024 to 2030. This growth is driven by several factors, including the increasing legalization of cannabis for both recreational and medical purposes, the rising application of cannabis in medicine, the introduction of advanced testing technologies, and a heightened focus on product quality and safety.

For instance, in April 2024, Germany legalized cannabis for recreational use, allowing adults to possess up to 25 grams. Additionally, various states and countries are implementing standardized testing and certification programs aimed at ensuring quality and regulating safety, which are expected to further stimulate market growth. In January 2024, Minnesota State Community and Technical College partnered with Green Flower to offer three new certificate programs tailored for careers in the cannabis sector. In April 2023, ACT Laboratories and SC Labs introduced the Trust in Testing Certification, establishing national standards for cannabis testing.

The ongoing global legalization of cannabis for medical and recreational purposes significantly contributes to market expansion by opening new markets and increasing consumer access. According to the National Conference of State Legislatures in April 2023, 38 U.S. states, the District of Columbia, and three territories have legalized cannabis for medical use, while 24 states, the District of Columbia, and two territories have legalized it for recreational use.

Key Market Trends & Insights

• North America dominated the cannabis testing services market in 2023 and accounted for the largest revenue share of 60.7% The key factors supporting the market's growth in this region are a rise in the number of cannabis testing laboratories due to strict government guidelines for cannabis cultivators and the presence of a large number of cannabis cultivators.
• The cannabis testing services market in the U.S. held the largest market share in 2023. The states in the U.S. have stringent cannabis testing requirements for potency and contaminants. The local authorities have listed the list of residual solvents, pesticides, and other contaminants to be tested in cannabis samples.
• By service, the potency testing segment dominated the market in 2023 and accounted for the largest revenue share of 22.8%. The rising usage of effective potency testing techniques such as High-Performance Liquid Chromatography (HPLC) and Gas Chromatography (GC) for testing samples is expected to drive the market growth.
• By end use, the cannabis cultivators/growers segment dominated the market in 2023 with a revenue share of 61.6%. Cannabis is gaining traction, as many developed countries are legalizing the cultivation of cannabis after recognizing the levels of CBD present in it, which is leading to an increased demand for cannabis for various applications in several sectors, including pharmaceuticals, nutraceuticals, cosmetics, and food & beverage.

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Market Size & Forecast

• 2023 Market Size: USD 1.8 Billion
• 2030 Projected Market Size: USD 5.39 Billion
• CAGR (2024-2030): 17.21%
• North America: Largest market in 2023

Key Companies & Market Share Insights

Leading companies in the cannabis testing services market are concentrating on innovative growth strategies, including product portfolio expansion, partnerships and collaborations, mergers and acquisitions, and increasing their business presence.

Key Players

• Saskatchewan Research Council (SRC)
• SC Labs
• SGS Société Générale de Surveillance SA (SGS Canada Inc.)
• Dr. Robert Shrewsbury & the UNC Eshelman School of Pharmacy (PharmLabs)
• GREEN LEAF LAB
• Eurofins Scientific
• PhytoVista Laboratories (BRITISH CANNABIS GROUP)
• BRITISH CANNABIS
• ADACT Medical Ltd.
• Laboratorium Dr. Liebich
• AZ Biopharm GmbH

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Conclusion

The cannabis testing services market is poised for substantial growth, fueled by legalization trends, technological advancements, and a commitment to product safety and quality. As regulations evolve and consumer access expands, the market is likely to experience further developments, leading to increased opportunities for stakeholders within the industry.