US CANNABIS TESTING SERVICES MARKET ANALYSIS

US Cannabis Testing Services Market – Insights

Development of therapies derived from cannabis and its components has been increasing in the recent past. Moreover, there has been extensive research and development treatment of various medical conditions such as cancer, multiple sclerosis, post-traumatic stress disorder, and anxiety with cannabis. Furthermore, the U.S. Food and Drug Administration (FDA) offers an active program which assists drug developers in investigating marijuana (or its components) through controlled clinical trials, in order to demonstrate the potential for safe and effective uses of marijuana.

The US Cannabis Testing Services Market size was valued at US$ 127.7 million in 2019, and is expected to witness a CAGR of 15.7% over the forecast period (2019 – 2027).

US Cannabis Testing Services Market Share (%) Analysis, By Test Type, 2019

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Source: Coherent Market Insights Analysis (2019)

Rising accreditation and licensing of cannabis testing laboratories is expected to drive growth of the US Cannabis Testing Services Market

Increasing approvals from regulatory authorities and banking bill for cannabis testing services is expected to contribute towards growth of the cannabis testing services market in the U.S. For instance, in September, the U.S. House of Representative passed a SAFE banking Act bill that would grant a legal marijuana businesses access to banking and in October 2018, the Massachusetts Cannabis Control Commission granted licenses to MCR Labs in Framingham and CDX Analytics in Salem for testing of recreational cannabis.

Furthermore, according to the Cannabis Industry Journal article published on May 30, 2019, the governor of Arizona signed the very first bill for mandatory testing of medical marijuana and derivative products to be conducted by an independent lab for pesticides, fungus, heavy metals, and other impurities starting November 1, 2020.

Moreover, in September 2018, Rhode Island Department of Health (RIDOH) announced that they are accepting applications for analytical laboratories in Rhode Island for testing of medical marijuana. Licensed laboratories will collect samples and analyze medical marijuana products cultivated and/or manufactured by registered compassion centers and licensed cultivators.

As a result, increasing legalization of cannabis and rising accreditations and licensing for cannabis testing laboratories in the U.S. is expected to drive demand for cannabis testing services and contribute to the market growth.

US Cannabis Testing Services Market - Restraints

Lack of regulations in some regions is expected to be a prominent factor hampering growth of the cannabis testing service market over the forecast period. For instance, up to April 2019, there were no regulations regarding cannabis laboratory testing in Arizona, U.S., which is one of the U.S. states where medicinal use for cannabis has been approved in 2010. In May 2019, lawmakers in Arizona, U.S. unanimously passed SB1494, a bill requiring mandatory lab testing for medical cannabis products, through the state’s House and Senate.

US Cannabis Testing Services Market Value (US$ Mn) & Y-o-Y Growth (%), 2016-2027

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 Source: Coherent Market Insights Analysis (2019)

US Cannabis Testing Services Market - Competitive Landscape

Key players operating in the US Cannabis Testing Services Market include SC Laboratories Inc., Eurofins Scientific, Praxis Laboratory, Agricore Laboratories, Digipath Inc., Fairbanks Analytical Testing LLC, Aurum Laboratories, LLC, Pure Analytics LLC, Gobi Labs, Cascadia Labs, Encore labs, PharmLabs LLC.