The U.S. cannabis testing market is expected to garner a significant revenue share by 2030 owing to regulatory requirements to maintain product quality. In addition, growing utilization of cannabis in medicinal products, along with soaring popularity of recreational marijuana use, is likely to propel product penetration over the forecast period.
The COVID-19 pandemic had a positive impact on the demand for cannabis testing products as many researchers were engaged in rigorous R&D initiatives to curb the negative effects of coronavirus on human health. For instance, in January 2022, a group of researchers from Oregon State University published a research study on cannabinoids’ ability to prevent the COVID-19-causing virus from entering human cells. The team identified the cannabis compounds using a chemical screening technique.
Moreover, the key players in the U.S. cannabis testing market have been adopting strategic growth partnerships & collaboration agreements with pharma companies and improving testing facilities to provide quick results, thereby augmenting their business presence. To cite an instance, in July 2022, Green Scientific Labs, a cannabis testing company, announced the adoption of a novel laboratory information management system (LIMS), its custom-designed software developed specifically for the cannabis space, across all its labs.
The U.S. cannabis testing market has been bifurcated on the basis of technology, test type, and zone.
With respect to test type, the U.S. cannabis testing industry has been classified into heavy metal testing, pesticide screening, potency testing, residual solvent screening, terpene testing, and mycotoxin testing. The pesticide screening segment accounted for more than 19.3% market share in 2021 and is set to grow massively through 2030 on account of using advanced techniques, such as liquid chromatography-tandem mass spectrometry (LC-MS/MS), in cannabis testing to eliminate harmful pesticides, including insecticides, rodenticides, fungicides, acaricides, and other crop protection chemicals.
On the other hand, the mycotoxin testing segment captured over 13% market share in 2021 as a result of the ability of the test to ensure customer safety and quality control. As cannabis compounds are highly toxic, they can cause certain immune diseases and malignancies even at very low doses, and thus, require mycotoxin testing.
In the zonal context, the U.S. cannabis testing market in the West North Central zone accounted for above $50 million in revenue in 2021. The legalization of the consumption of marijuana for medical purposes in states, such as Missouri, North Dakota, and South Dakota, is foreseen to drive the cannabis testing industry expansion in the zone between 2022 and 2030.
Meanwhile, the West South Central U.S. cannabis testing industry was worth more than $300 million in 2021 and is slated to amass substantial gains by 2030. Cannabis utilization is illegal in the states of Oklahoma, Louisiana, and Arkansas for recreational applications, which is fostering the need for analytical testing for medical marijuana, bolstering zonal market progress. Furthermore, the Mountain States zone captured over 18% share in the U.S. cannabis testing market in 2021 due to the large presence of cultivators and producers in these states.