US cannabis testing services market is estimated to be valued at USD 2.04 Bn in 2025 and is expected to reach USD 4.71 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 12.7% from 2025 to 2032.
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Legalization of medical and recreational cannabis in several states can drive the market growth. Increased regulation requires testing for multiple parameters like potency, residual solvents, heavy metals, pesticides, mycotoxins, and others to ensure the safety and consistency of cannabis products. Various forms of cannabis like flower, concentrates and infused products require different test packages. Furthermore, regulatory standards for testing are also evolving with time, necessitating frequent testing. Several companies are investing in expansion of facility infrastructure and addition of testing equipment and services to meet the growing demand. Wider social acceptance and demand for new product forms will also require advanced testing techniques, driving the need for innovative service offerings in the market.
Market Driver – Growing cannabis production and consumption
Rapid legalization of both medical and recreational cannabis across the U.S. can drive the cannabis testing services market growth. As of 2022, 18 states have legalized recreational use of marijuana with adult-use sales topping US$ 3 billion in 2022. Medical cannabis is legal in 38 states and its demand rises each year. With this explosive expansion in production and consumption, safety testing of cannabis and cannabis products has become increasingly crucial. States are mandating stringent testing requirements to ensure products are free of toxins, pesticides and mold and accurately labelled regarding THC and CBD potency. This boosts demand for laboratories and testing services. Companies in the cannabis industry now require comprehensive safety and purity testing of flowers, edibles and concentrates prior to being sold in the legal market. Different states have varying requirements but most mandate multiple tests including microbial screening, residual solvent tests and heavy metal screening. Some states even require terpene or cannabinoid profiling. The need for reliable, consistent testing at scale offer opportunity for analytical testing labs. As the legal cannabis market continues extending into new states and the popularity of certain product categories like edibles and vapes increases, there will be increase in testing needs. The rapidly evolving industry is also giving rise to new testing categories such as tests for toxins like myclobutanil, which was not previously regulated but has now been found in some vapes.
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