Cannabis testing services help ensure the potency, safety and quality of cannabis products cultivated, processed and distributed across the US market. With the rising legalization of both medical and recreational cannabis across various states, cultivation and production activities have grown manifold over the years. There has been a substantial rise in the variety of cannabis products available in the market ranging from dried flowers and oils to edibles and other consumables. Each batch of cannabis and cannabis products needs to be tested for cannabinoid profile, terpene content, residual solvents, heavy metals, microbiological impurities, pesticides and other contaminants to comply with regulations and customer safety needs.

The global Us Cannabis Testing Services Market is estimated to be valued at Us$ 2.16 Bn in 2024 and is expected to exhibit a CAGR Of 18% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

The key trend in the US cannabis testing services market is the addition of novel testing methods and technologies. Vendors are focusing on developing testing solutions that can provide accurate results in a shorter timeframe. This is enabling producers to test multiple samples simultaneously and release batches faster. Liquid chromatography-mass spectrometry (LC-MS) and gas chromatography-mass spectrometry (GC-MS) based solutions are gaining adoption. Moreover, genetic testing solutions are being incorporated to authenticate cultivars and identify Cannabis strains. Such advancements are improving testing efficiencies and helping producers comply with strict regulations.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the US cannabis testing services market is moderate due to high capital requirements for setting up testing laboratories and need for regulatory approvals.

Bargaining power of buyers: The bargaining power of buyers is moderate due to presence of various testing service providers and standard testing methods.

Bargaining power of suppliers: The bargaining power of suppliers is low due to availability of substitute raw material suppliers and differentiation in services.

Threat of new substitutes: The threat of new substitutes is moderate owing to difficulty in development of new substitute testing methods and compliance with regulatory standards.

Competitive rivalry: The competitive rivalry is high among existing players to gain maximum market share.

Key Takeaways

The Global US Cannabis Testing Services Market Demand is expected to witness high growth.

Regional analysis:

North America dominates the US cannabis testing services market currently due to legalization of cannabis in several states and presence of advanced testing infrastructure.

Key players operating in the US cannabis testing services market are Twist Bioscience Corporation, GenScript Biotech Corporation, Eurofins Scientific SE, and Thermo Fisher Scientific Inc.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it