The global cannabis testing market is projected to be worth an estimated $1.8 billion in 2024 according to a new market analysis by Markets and Markets. The testing market is projected to increase to $4 billion in value by 2029 (CAGR of 17.2%).
“The important factors impacting market growth are legalization trends and rising medical applications for cannabis. Rising approvals for medical and recreational cannabis drive the regulations requiring product safety testing which in turn fuel the need for cannabis testing services. Additionally, the rise in the number of cannabis testing labs due to legalization is propelling the demand for analytical instruments is likely to uplift market growth in coming years.” Markets and Markets stated about its analysis in a press release.
“Based on service, the cannabis testing market is broadly segmented into terpene profiling, microbial analysis, residual solvent analysis, potency testing, heavy metal testing, pesticide screening, and other services. In 2023, potency testing accounted for the largest share of the cannabis testing services market. The high growth of this segment is due to stringent regulatory requirements ensuring accurate THC and CBD levels.” the company also stated.
“North America accounted for the largest share of 65.5% of the cannabis testing market in 2023. The North American market is projected to reach a value of USD 2.6 billion by 2029 from an estimated value of USD 1.2 million in 2024, at a CAGR of 17.3% during the forecast period.” the company stated about the North American testing market.
The world’s cannabis testing market is projected to increase in size by $1.5 billion by 2027 according to a separate report by Technavio, growing “at a CAGR of about 13.06% during the forecast period.”
“The cannabis testing market encompasses a range of applications, including the detection and quantification of heavy metals and residual solvents in tinctures, salves, edibles, vape oils, raw plant materials, and novel equipment. Consumer safety and regulatory standards are paramount in this industry, necessitating stringent testing protocols.” Technavio stated in a press release.
A recent analysis by The Business Research Company estimated that the global cannabis testing market was worth roughly $2.54 billion in 2023. The researchers also estimate that the size of the global cannabis testing market will rise to $3 billion by the end of this year.
“The cannabis testing market size is expected to see rapid growth in the next few years. It will grow to $6.05 billion in 2028 at a compound annual growth rate (CAGR) of 19.1%.” The Business Research Company stated about its analysis.
“North America was the largest region in the cannabis testing market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period.” the company also stated.