Global Cannabis Testing Services Market Size, Share, Trends, Industry Growth by Services (Potency Testing, Terpene Profiling, Heavy Metal Testing, Pesticide Screening, Microscopy Testing, Residual Solvent Screening, Others), by End-Use (Cannabis Cultivators/Growers, Cannabis Drug Manufacturers, Others), by Region and Forecast to 2030
Report ID: RC145184 | Report Format: PDF + Excel | Starting Price: 3600/- USD |Key Findings:
- The market size was valued at over US$ 1 Bn in 2023 and growing at a significant growth rate of ~ 13% by 2030
- By services, the potency testing segment dominated the market in the benchmark year 2023
- Geographically, North America is accounted to hold the largest market share in 2023
The global cannabis testing services market size was valued at over USD 1 billion in 2023 and projected to grow at a significant CAGR of around 13% during the forecast period from 2024 to 2030. The market is driven by the increasing legalization and decriminalization of cannabis across various countries for medical and recreational use. As governments and regulatory bodies establish guidelines for cannabis cultivation, manufacturing, and distribution, the need for stringent quality control measures becomes paramount. This has led to the rising demand for cannabis testing services to ensure product safety, potency, and compliance with regulations. Furthermore, growing consumer awareness regarding the health benefits of cannabis and concerns about contamination or improper labeling push the need for standardized testing procedures.
Another major driving factor is the advancement in testing technologies. Innovations in analytical techniques, such as chromatography and spectroscopy, allow for more accurate detection of cannabinoids, terpenes, pesticides, heavy metals, and other contaminants. Additionally, the expanding medical cannabis sector, where precise dosage and product purity are critical, further fuels the demand for comprehensive testing services. This trend is supported by the ongoing research and development efforts aimed at understanding the therapeutic potential of cannabis, increasing the scope for various types of testing to meet the needs of the medical community.
Market Snapshot:
Benchmark Year | 2023 | ||
Market Size | > USD 1 Billion in 2023 | ||
Market Growth (CAGR) | ~ 13% (2024 – 2030) | ||
Largest Market Share | North America | ||
Analysis Period | 2020-2030 | ||
Market 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), and GREEN LEAF LAB |
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Market Trends:
Rising Legalization: The global trend toward legalizing cannabis for both medical and recreational use has significantly boosted the demand for cannabis testing services. Many countries and regions have implemented strict regulations to ensure the safety and quality of cannabis products. As more jurisdictions move toward legalization, they are establishing guidelines that require extensive testing for potency, contaminants, and safety. These regulations make it mandatory for companies involved in the production and distribution of cannabis to utilize third-party testing services. This trend is especially prominent in North America and Europe, where legalization efforts are advancing at a rapid pace. The increased regulatory scrutiny has created a need for specialized testing services that can handle the growing demand from cannabis producers and retailers to ensure compliance.
Technological Advancements: The rapid advancement in analytical technologies has greatly impacted the cannabis testing services market. Sophisticated techniques such as high-performance liquid chromatography (HPLC), gas chromatography (GC), and mass spectrometry (MS) are becoming standard tools in cannabis testing labs. These technologies allow for highly accurate detection and quantification of cannabinoids, terpenes, heavy metals, pesticides, and other contaminants. Additionally, innovations in next-generation sequencing (NGS) enable a more comprehensive analysis of cannabis plant genetics and potential impurities. These advancements are streamlining the testing process, reducing the time required for results, and increasing the accuracy of the data produced. The continuous improvement of testing technologies has expanded the capabilities of labs, enabling them to meet the growing demand for faster, more precise, and reliable testing services.
Growing Consumer Awareness: The cannabis industry is experiencing a shift in consumer behavior, with increasing awareness about product safety and health concerns. Consumers today are more informed and cautious about the products they consume, particularly when it comes to cannabis. They are paying closer attention to factors such as product potency, purity, and the presence of harmful substances like pesticides or heavy metals. This heightened awareness has created a demand for greater transparency in cannabis product labeling and safety assurances, prompting producers to invest in rigorous testing processes. As a result, cannabis testing labs are playing a crucial role in meeting these consumer expectations by offering services that guarantee product quality and safety through comprehensive testing protocols.
Expansion of Medical Cannabis: The medical cannabis sector is rapidly growing, with increasing research supporting its use in the treatment of a variety of medical conditions, such as chronic pain, epilepsy, and cancer-related symptoms. Medical cannabis patients, in particular, require products that are highly consistent, accurately dosed, and free from contaminants. For this reason, testing services are essential in ensuring that medical cannabis products meet strict safety and efficacy standards. Medical cannabis often requires more detailed testing than recreational products, as patients rely on precise cannabinoid concentrations for therapeutic effectiveness. As the medical cannabis sector expands, the demand for testing services that cater specifically to this market is expected to rise, further fueling the growth of the cannabis testing services market.
Regulatory Harmonization: Another key trend driving the cannabis testing services market is the growing push for harmonized regulations across regions and countries. Currently, cannabis testing requirements vary widely depending on the jurisdiction, leading to challenges in ensuring product consistency and safety across borders. However, there is a growing effort to standardize testing protocols and create a more uniform regulatory framework, particularly in regions such as Europe and North America. This harmonization would streamline the cannabis testing process, making it easier for companies to comply with regulations and expand their products into new markets. As more regions adopt similar testing standards, it will likely drive further growth in the cannabis testing services market, enabling companies to offer testing services on a broader, global scale.
Market Opportunities:
The global cannabis testing services market offers significant growth opportunities, particularly due to the expanding legalization of cannabis in emerging markets. As more countries, especially in regions like Asia-Pacific and Latin America, move toward cannabis legalization for medicinal and recreational purposes, the demand for testing services is expected to surge. These regions are witnessing increased regulatory scrutiny, which will drive the need for certified laboratories to test cannabis products for potency, contaminants, and regulatory compliance. Companies entering these markets can tap into the rising demand by establishing advanced testing facilities and offering comprehensive testing solutions to meet the growing needs of local producers and governments.
Additionally, the ongoing development of new cannabis products, such as edibles, oils, topicals, and beverages, presents another lucrative opportunity. Each of these products requires specialized testing for potency, dosage accuracy, and potential contaminants. As the product landscape diversifies, testing labs can expand their service offerings to cater to the unique testing needs of different product categories. Innovations in testing technologies will also play a role in enabling companies to offer more precise and efficient testing solutions. By capitalizing on these trends, businesses can position themselves to capture a larger share of the growing cannabis market.
Market Restraints:
One of the primary restraining factors in the global cannabis testing services market is the lack of standardized regulations across different regions and countries. Inconsistent testing requirements create challenges for cannabis producers and testing labs, as they must navigate varying regulatory frameworks depending on the jurisdiction. This fragmentation makes it difficult to ensure uniform quality and safety standards, hindering the growth of the market. Additionally, the high costs associated with setting up and maintaining advanced testing laboratories, combined with the complexity of testing for various contaminants and cannabinoids, can act as a barrier for smaller companies entering the market.
Market Insights:
The global cannabis testing services market is bifurcated into services, end-use, and geography. On the basis of services, the potency testing segment dominated the market in the benchmark year 2023. This service is crucial for determining the concentrations of key cannabinoids such as THC and CBD, which directly influence the effects of cannabis products. Accurate potency testing is a regulatory requirement in most legalized markets, as it ensures that consumers receive products with reliable dosage information. For medical cannabis, potency testing is even more essential, as patients require precise concentrations to manage their conditions effectively. The dominance of this segment is also driven by the increasing variety of cannabis products, such as edibles, oils, and topicals, all of which require accurate labeling of cannabinoid content.
Furthermore, the rising demand for transparency in product labeling, particularly among health-conscious consumers, has further fueled the growth of potency testing. As more regions legalize cannabis, both recreational and medicinal users want assurance about the strength and effects of their products. This trend has made potency testing a cornerstone of quality control in the cannabis industry. The emphasis on cannabinoid profiling in clinical research and product development also contributes to the dominance of this segment, as understanding the exact chemical makeup of cannabis is crucial for both therapeutic and recreational purposes.
Market Trends for Potency Testing Sub-category:
- Increasing Legalization: The global trend toward legalizing cannabis for both recreational and medical use is driving the demand for potency testing. As more regions legalize cannabis, regulatory requirements for accurate labeling of cannabinoid content become stricter, leading to greater reliance on potency testing services. This trend is particularly evident in emerging markets where new regulations are being implemented.
- Consumer Demand for Transparency: Consumers are increasingly seeking transparency regarding the potency of cannabis products. With the growing awareness of cannabis’ therapeutic and recreational effects, consumers demand precise information about THC and CBD concentrations. This trend is pushing companies to invest in accurate potency testing to meet consumer expectations and regulatory requirements.
Market Opportunities for Potency Testing Sub-category:
- Expansion into Emerging Markets: As cannabis legalization spreads to new regions, there are significant opportunities for growth in potency testing services. Emerging markets in regions like Latin America and Asia-Pacific present untapped potential, as these areas are in the process of establishing regulatory frameworks that will require robust potency testing services.
- Development of New Testing Methods: There is an opportunity to innovate and develop new testing methods that enhance the accuracy and speed of potency analysis. Emerging technologies and methodologies could position companies as leaders in the field, offering advanced solutions to meet the evolving needs of the cannabis industry.
The cannabis testing services market research report presents the analysis of each segment from 2020 to 2030 considering 2023 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2024 to 2030.
Historical & Forecast Period
- 2020-22 – Historical Year
- 2023 – Base Year
- 2024-2030 – Forecast Period
Market Segmentation:
By Services:
- Potency Testing
- Terpene Profiling
- Heavy Metal Testing
- Pesticide Screening
- Microscopy Testing
- Residual Solvent Screening
- Others
By End-Use:
- Cannabis Cultivators/Growers
- Cannabis Drug Manufacturers
- Others
By Region:
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Regional Analysis:
Geographically, the North America dominated the global cannabis testing services market in the benchmark year 2023, primarily due to the rapid legalization of cannabis across various states in the United States and Canada. In the U.S., states such as California, Colorado, and Oregon have established comprehensive regulatory frameworks that mandate rigorous testing of cannabis products for safety and potency. This has led to a significant increase in demand for testing services as both recreational and medical cannabis markets expand. Similarly, Canada’s nationwide legalization of cannabis in 2018 set a precedent for stringent testing requirements, making the country a leader in the cannabis testing industry. The robust regulatory environment in North America ensures that testing services are not only prevalent but also crucial for maintaining product safety and compliance.
Furthermore, the North American market benefits from advanced technological infrastructure and a higher number of accredited laboratories specializing in cannabis testing. The presence of established companies and startups focused on developing innovative testing methodologies enhances the overall capabilities of testing services in the region. As consumer awareness regarding product quality and safety continues to rise, the demand for reliable potency and contaminant testing is expected to grow. The North American dominance in the cannabis testing services market is likely to persist, driven by ongoing regulatory developments, technological advancements, and a growing emphasis on product transparency among consumers.
Competitive Landscape:
Some of the prominent market players operating in the global cannabis testing services market are 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), and GREEN LEAF LAB. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.
Key Companies:
- Saskatchewan Research Council (SRC)
- SC Labs
- SGS Société Générale de Surveillance SA (SGS Canada Inc.)
- 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
Key Questions Answered by Cannabis Testing Services Market Report
- Global cannabis testing services market forecasts from 2024-2030
- Regional market forecasts from 2024-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
- Country-level forecasts from 2024-2030 covering 15 major countries from the regions as mentioned above
- Cannabis testing services submarket forecasts from 2024-2030 covering the market by services, end-use, and geography
- Various industry models such as SWOT analysis, Value Chain Analysis about the market
- Analysis of the key factors driving and restraining the growth of the global, regional, and country-level cannabis testing services markets from 2024-2030
- Competitive Landscape and market positioning of top 10 players operating in the market
1. Preface
1.1. Report Description
1.1.1. Purpose of the Report
1.1.2. Target Audience
1.1.3. USP and Key Offerings
1.2. Research Scope
1.3. Research Methodology
1.3.1. Phase I – Secondary Research
1.3.2. Phase II – Primary Research
1.3.3. Phase III – Expert Panel Review
1.4. Assumptions
2. Executive Summary
2.1. Global Cannabis Testing Services Market Portraiture
2.2. Global Cannabis Testing Services Market, by Services, 2023 (USD Mn)
2.3. Global Cannabis Testing Services Market, by End-Use, 2023 (USD Mn)
2.4. Global Cannabis Testing Services Market, by Geography, 2023 (USD Mn)
3. Global Cannabis Testing Services Market Analysis
3.1. Cannabis Testing Services Market Overview
3.2. Market Inclination Insights
3.3. Market Dynamics
3.3.1. Drivers
3.3.2. Challenges
3.3.3. Opportunities
3.4. Market Trends
3.5. Attractive Investment Proposition
3.6. Competitive Analysis
3.7. Porter’s Five Force Analysis
3.7.1. Bargaining Power of Suppliers
3.7.2. Bargaining Power of Buyers
3.7.3. Threat of New Entrants
3.7.4. Threat of Substitutes
3.7.5. Degree of Competition
3.8. PESTLE Analysis
4. Global Cannabis Testing Services Market by Services, 2020 – 2030 (USD Mn)
4.1. Overview
4.2. Potency Testing
4.3. Terpene Profiling
4.4. Heavy Metal Testing
4.5. Pesticide Screening
4.6. Microscopy Testing
4.7. Residual Solvent Screening
4.8. Others
5. Global Cannabis Testing Services Market by End-Use, 2020 – 2030 (USD Mn)
5.1. Overview
5.2. Cannabis Cultivators/Growers
5.3. Cannabis Drug Manufacturers
5.4. Others
6. North America Cannabis Testing Services Market Analysis and Forecast, 2020 – 2030 (USD Mn)
6.1. Overview
6.2. North America Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
6.3. North America Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
6.4. North America Cannabis Testing Services Market by Country, (2020-2030 USD Mn)
6.4.1. U.S.
6.4.1.1. U.S. Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
6.4.1.2. U.S. Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
6.4.2. Canada
6.4.2.1. Canada Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
6.4.2.2. Canada Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
6.4.3. Mexico
6.4.3.1. Mexico Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
6.4.3.2. Mexico Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
7. Europe Cannabis Testing Services Market Analysis and Forecast, 2020 - 2030 (USD Mn)
7.1. Overview
7.2. Europe Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
7.3. Europe Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
7.4. Europe Cannabis Testing Services Market by Country, (2020-2030 USD Mn)
7.4.1. Germany
7.4.1.1. Germany Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
7.4.1.2. Germany Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
7.4.2. U.K.
7.4.2.1. U.K. Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
7.4.2.2. U.K. Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
7.4.3. France
7.4.3.1. France Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
7.4.3.2. France Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
7.4.4. Spain
7.4.4.1. Spain Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
7.4.4.2. Spain Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
7.4.5. Italy
7.4.5.1. Italy Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
7.4.5.2. Italy Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
7.4.6. Rest of Europe
7.4.6.1. Rest of Europe Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
7.4.6.2. Rest of Europe Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
8. Asia Pacific Cannabis Testing Services Market Analysis and Forecast, 2020 - 2030 (USD Mn)
8.1. Overview
8.2. Asia Pacific Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
8.3. Asia Pacific Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
8.4. Asia Pacific Cannabis Testing Services Market by Country, (2020-2030 USD Mn)
8.4.1. China
8.4.1.1. China Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
8.4.1.2. China Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
8.4.2. Japan
8.4.2.1. Japan Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
8.4.2.2. Japan Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
8.4.3. India
8.4.3.1. India Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
8.4.3.2. India Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
8.4.4. South Korea
8.4.4.1. South Korea Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
8.4.4.2. South Korea Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
8.4.5. Rest of Asia Pacific
8.4.5.1. Rest of Asia Pacific Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
8.4.5.2. Rest of Asia Pacific Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
9. Latin America (LATAM) Cannabis Testing Services Market Analysis and Forecast, 2020 - 2030 (USD Mn)
9.1. Overview
9.2. Latin America Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
9.3. Latin America Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
9.4. Latin America Cannabis Testing Services Market by Country, (2020-2030 USD Mn)
9.4.1. Brazil
9.4.1.1. Brazil Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
9.4.1.2. Brazil Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
9.4.2. Argentina
9.4.2.1. Argentina Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
9.4.2.2. Argentina Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
9.4.3. Rest of Latin America
9.4.3.1. Rest of Latin America Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
9.4.3.2. Rest of Latin America Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
10. Middle East and Africa Cannabis Testing Services Market Analysis and Forecast, 2020 - 2030 (USD Mn)
10.1. Overview
10.2. MEA Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
10.3. MEA Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
10.4. Middle East and Africa Cannabis Testing Services Market, by Country, (2020-2030 USD Mn)
10.4.1. GCC
10.4.1.1. GCC Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
10.4.1.2. GCC Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
10.4.2. South Africa
10.4.2.1. South Africa Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
10.4.2.2. South Africa Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
10.4.3. Rest of MEA
10.4.3.1. Rest of MEA Cannabis Testing Services Market by Services, (2020-2030 USD Mn)
10.4.3.2. Rest of MEA Cannabis Testing Services Market by End-Use, (2020-2030 USD Mn)
11. Competitive Landscape
11.1. Company Market Share Analysis, 2023
11.2. Competitive Dashboard
11.3. Competitive Benchmarking
11.4. Geographic Presence Heatmap Analysis
11.5. Company Evolution Matrix
11.5.1. Star
11.5.2. Pervasive
11.5.3. Emerging Leader
11.5.4. Participant
11.6. Strategic Analysis Heatmap Analysis
11.7. Key Developments and Growth Strategies
11.7.1. Mergers and Acquisitions
11.7.2. New Product Launch
11.7.3. Joint Ventures
11.7.4. Others
12. Company Profiles
12.1. Saskatchewan Research Council (SRC)
12.1.1. Business Description
12.1.2. Financial Health and Budget Allocation
12.1.3. Product Positions/Portfolio
12.1.4. Recent Development
12.1.5. SWOT Analysis
12.2. SC Labs
12.3. SGS Société Générale de Surveillance SA (SGS Canada Inc.)
12.4. Dr. Robert Shrewsbury & the UNC Eshelman School of Pharmacy (PharmLabs)
12.5. GREEN LEAF LAB
12.6. Eurofins Scientific
12.7. PhytoVista Laboratories (BRITISH CANNABIS GROUP)
12.8. BRITISH CANNABIS
12.9. ADACT Medical Ltd.
12.10. Laboratorium Dr. Liebich
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