According a recent press release, Coherent Market Insights, the global cannabis testing service market was valued at $230.3 million 2018. Further, the market is projected to exhibit a CAGR of 8.5% from 2018 to 2026.
One of the main factor identified for the growth is the increasing legalization of cannabis concerning recreational and medicinal activities, and not just in the United States. Other countries, such as Germany and Australia, have passed laws concerning medical cannabis.
Another factor identified is lab testing of cannabis products, which is mandatory in several states. The required testing is expected to boost market growth. One such state requiring testing is Arizona. SB1494 requires lab testing of medical cannabis products. Another state government is California, which as 30 licensed laboratories that offer services.
Ultimately, the increased legalization and the growing requirements for testing services are leading to greater needs in the cannabis market. There are a number of major companies, according to the press release, that handle cannabis testing. These include SC Laboratory, Encore Labs, SGS Canada Inc., Pharm Labs LLC, Agricore Laboratories, and Eurofins Scientific. These testing services, and others, may continue to meet increased demand as cannabis use grows, and testing requirements are adopted by more jurisdictions.