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

US Cannabis Testing Service  | Coherent Market Insights

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

US Cannabis Testing Service  | Coherent Market Insights

 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, EVIO Labs, Praxis Laboratory, Agricore Laboratories, Steep Hill Labs, Inc., Digipath, Inc., Sequoia Analytical Labs, Fairbanks Analytical Testing LLC, Aurum Laboratories, LLC, Pure Analytics LLC, Gobi Labs, Cascadia Labs, Encore labs, PharmLabs LLC and Cann-a-Lab.

US Cannabis market is highly influenced by rigorous legalization efforts, which are aiming for approval of cannabis for medicinal or recreational purposes. Various governments and regulatory authorities are taking efforts to legalize cannabis, owing to its medicinal benefits. Moreover, commercialization of cannabis-based products under the legalized standards require successful cannabis testing, which further results in lucrative growth opportunities for market players.

Market Dynamics

Increasing legalization of marijuana in the U.S. by the federal law is expected to drive growth of the U.S. cannabis testing services market. For instance, according to drug policy 2018 report, on November 6, 2012, Colorado and Washington became the first two jurisdictions in the world to legalize marijuana for adult use. Moreover, in January 2018, Vermont became the first state to legalize marijuana through a state legislature, and furthermore, according to Governing 2019 report, 11 states have legalized marijuana for recreational use and 22 states have legalized it for medical use in the U.S.

However, lack of standard testing processes is expected to hinder growth of the market. Moreover, there are challenges associated with certification for manufacturers of infused products, as there are no guidelines that standardize the equipment or methods of testing labs use. As a result, one sample can produce different results based on the laboratory where it’s tested.

Key features of the study:

  • This report provides in-depth analysis of the US Cannabis Testing Services Market, market size (US$ Mn), and compound annual growth rate (CAGR (%) for the forecast period, 2019-2027, considering 2018 as the base year
  • It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
  • This study provides key insights about market drivers, restraints, opportunities, new product launches or approvals, market trends, regional outlook, and competitive strategies adopted by leading players
  • It profiles key players in the US Cannabis Testing Services Market based on the following parameters: company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments, and strategies
  • Key players covered as a part of this study include SC Laboratories Inc., Eurofins Scientific, EVIO Labs, Praxis Laboratory, Agricore Laboratories, Steep Hill Labs, Inc., Digipath, Inc., Sequoia Analytical Labs, Fairbanks Analytical Testing LLC, Aurum Laboratories, LLC, Pure Analytics LLC, Gobi Labs, Cascadia Labs, Encore labs, PharmLabs LLC and Cann-a-Lab
  • Insights from this report would allow marketers and management authorities of companies to make informed decisions with respect to future product launches, governmental initiatives, technological up-gradation, market expansion, and marketing tactics
  • The US Cannabis Testing Services Market report caters to various stakeholders in this industry, which include investors, product manufacturers, distributors, and suppliers for US Cannabis Testing Services Market, research and consulting firms, new entrants, and financial analysts

Detailed Segmentation:

  • US Cannabis Testing Services Market, by Test Type:
    • Potency Testing         
    • Terpene Profiling
    • Cannabinoid Profiling
      • CBD Testing
      • THC Testing
    • Pesticide Screening
    • Residual Solvent Testing
    • Microbiological Screening
    • Other Tests
  • US Cannabis Testing Services Market, by End User:
    • Cannabis Firms
    • Homecare Settings
    • Research Institutes
  • US Cannabis Testing Services Market, by States:
    • Florida
      • By Test Type:
        • Potency Testing         
        • Terpene Profiling
        • Cannabinoid Profiling
          • CBD Testing
          • THC Testing
        • Pesticide Screening
        • Residual Solvent Testing
        • Microbiological Screening
        • Other Tests
    • Michigan
      • By Test Type:
        • Potency Testing         
        • Terpene Profiling
        • Cannabinoid Profiling
          • CBD Testing
          • THC Testing
        • Pesticide Screening
        • Residual Solvent Testing
        • Microbiological Screening
        • Other Tests
    • Pennsylvania
      • By Test Type:
        • Potency Testing         
        • Terpene Profiling
        • Cannabinoid Profiling
          • CBD Testing
          • THC Testing
        • Pesticide Screening
        • Residual Solvent Testing
        • Microbiological Screening
        • Other Tests
    • New Jersey
      • By Test Type:
        • Potency Testing         
        • Terpene Profiling
        • Cannabinoid Profiling
          • CBD Testing
          • THC Testing
        • Pesticide Screening
        • Residual Solvent Testing
        • Microbiological Screening
        • Other Tests
    • New York
      • By Test Type:
        • Potency Testing         
        • Terpene Profiling
        • Cannabinoid Profiling
          • CBD Testing
          • THC Testing
        • Pesticide Screening
        • Residual Solvent Testing
        • Microbiological Screening
        • Other Tests
    • Other States
      • By Drug Type:
        • Potency Testing         
        • Terpene Profiling
        • Cannabinoid Profiling
          • CBD Testing
          • THC Testing
        • Pesticide Screening
        • Residual Solvent Testing
        • Microbiological Screening
        • Other Tests
  • Company Profiles
    • SC Laboratories Inc.*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Recent Highlights
      • Strategies
    • Eurofins Scientific
    • EVIO Labs
    • Praxis Laboratory
    • Agricore Laboratories
    • Steep Hill Labs, Inc.
    • Digipath, Inc.
    • Sequoia Analytical Labs
    • Fairbanks Analytical Testing LLC
    • Aurum Laboratories, LLC
    • Pure Analytics LLC
    • Gobi Labs
    • Cascadia Labs
    • Encore labs
    • PharmLabs LLC
    • Cann-a-Lab

“*” marked represents similar segmentation in other categories in the respective section.

Table of Contents

  1. Research Objective and Assumption
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Overview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Test Type
      • Market Snippet, By End User
      • Market Snippet, By States
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Research & Development (R&D) Activities in Cannabis
    • Application of Cannabis for Medicinal Conditions
    • Medical Uses of CBD vs THC
    • Impact Analysis
    • Key Developments
    • Cannabis Promotional Activities
    • Recommended Methods for Cannabis Testing
    • Medical Marijuana Legalized States in the U.S. (As of November 2018)
    • Cannabis Testing Laboratory Accreditation Program
    • Instruments Used
    • Approved Labs
    • Cost of Testing
    • Regulations For Cannabis Testing (California)
    • PEST Analysis
  4. US Cannabis Testing Services Market, By Test Type, 2019 – 2027, (US$ Million)
    • Introduction
      • Market Share Analysis, 2019 and 2027 (%)
      • Y-o-Y Growth Analysis, 2017 – 2027
      • Segment Trends
    • Potency Testing         
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027 , (US$ Million)
    • Terpene Profiling
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027 , (US$ Million)
    • Cannabinoid Profiling
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027 , (US$ Million)
        • CBD Testing
          • Introduction
          • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027 , (US$ Million)
        • THC Testing
          • Introduction
          • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027 , (US$ Million)
    • Pesticide Screening
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027 , (US$ Million)
    • Residual Solvent Testing
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027 , (US$ Million)
    • Microbiological Screening
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027 , (US$ Million)
    • Other Tests
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027 , (US$ Million)
  5. US Cannabis Testing Services Market, By End User, 2019 – 2027, (US$ Million)
    • Introduction
      • Market Share Analysis, 2019 and 2027 (%)
      • Y-o-Y Growth Analysis, 2017 – 2027
      • Segment Trends
    • Cannabis Firms
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027 , (US$ Million)
    • Homecare Settings
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027 , (US$ Million)
    • Research Institutes
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027 , (US$ Million)
  6. US Cannabis Testing Services Market, By States, 2019 – 2027, (US$ Million)
    • US States Trends
    • Florida
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, By Test Type 2016–2027, (US$ Million)
    • Michigan
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, By Test Type 2016–2027, (US$ Million)
    • Pennsylvania
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, By Test Type 2016–2027, (US$ Million)
    • New Jersey
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, By Test Type 2016–2027, (US$ Million)
    • New York
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, By Test Type 2016–2027, (US$ Million)
    • Other States
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, By Test Type 2016–2027, (US$ Million)
  7. Competitive Landscape
    • Company Profiles
      • SC Laboratories Inc.*
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Highlights
        • Strategies
      • Eurofins Scientific
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Highlights
        • Strategies
      • EVIO Labs
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Highlights
        • Strategies
      • Praxis Laboratory
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Highlights
        • Strategies
      • Agricore Laboratories
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Highlights
        • Strategies
      • Steep Hill Labs, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Highlights
        • Strategies
      • Digipath, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Highlights
        • Strategies
      • Sequoia Analytical Labs
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Highlights
        • Strategies
      • Fairbanks Analytical Testing LLC
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Highlights
        • Strategies
      • Aurum Laboratories, LLC
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Highlights
        • Strategies
      • Pure Analytics LLC
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Highlights
        • Strategies
      • Gobi Labs
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Highlights
        • Strategies
      • Cascadia Labs
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Highlights
        • Strategies
      • Encore labs
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Highlights
        • Strategies
      • PharmLabs LLC
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Highlights
        • Strategies
      • Cann-a-Lab
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Highlights
        • Strategies
    • Analyst Views
  8. Section
    • References
    • Research Methodology         
    • About Us and Sales Contact

*Browse 13 market data tables and 23 figures on “Cannabis Testing Services Market” – US forecast to 2027”

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.


Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users