Report: Marijuana Testing Market Worth Nearly $2 Billion

The global cannabis testing market in terms of revenue was estimated to be worth $1.8 billion in 2024 and is poised to reach $4.0 billion by 2029, growing at a CAGR of 17.2% from 2024 to 2029.

This is according to a new report conducted by the research firm Markets and Markets. The comprehensive research “encompasses an exhaustive examination of industry trends, meticulous pricing analysis, patent scrutiny, insights derived from conferences and webinars, identification of key stakeholders, and a nuanced understanding of market purchasing dynamics”, according to a press release.

The growth of this market is due to “increasing use of cannabis in medicinal applications and the increasing legalization of recreational and medical cannabis, and launch of technologically advanced instruments”, states the report.

Based on service, the cannabis testing market is broadly segmented into potency testing, terpene profiling, residual solvent analysis, microbial analysis, pesticide screening, heavy metal testing, and other services. In 2023, potency testing accounted for the largest share of the cannabis testing services market. The potency testing segment is growing at significant CAGR due to increased demand for accurate measurement of THC and CBD levels. This trend is led by companies like Kaycha Holdings LLC and SC Labs, and driven by regulatory requirements, consumer safety concerns, and the need for consistent product quality in both medical and recreational cannabis industries.

Based on end user, the cannabis testing market has been segmented into product & software end users and service end users. The service end users segment accounted for the largest share of the global cannabis testing market in 2023 and the highest CAGR over the forecast period. The dominant share of this segment can primarily be attributed to the increasing legalization of cannabis, rising consumer awareness of safety and quality, stringent regulatory standards, and advancements in testing technologies.

In 2023, North America commanded the largest share in the cannabis testing market in 2023 and is expected to grow at a significant CAGR during the forecast period. The market in this region is driven by the rising legalization of cannabis for both recreational and medical purposes all over North America and the increasing medical applications of cannabis. For example, in May 2023, Biophore India Pharmaceuticals’ subsidiary Zenara Pharma received approval for the final product, Cannabidiol Oral Solution 100mg/ml, indicated for neuro disorders. This was a first-of-its-kind Cannabidiol-based product approval in India. The market is further driven by the presence of major cannabis giants such as Aurora Cannabis Inc., Medical Marijuana Inc., and Canopy Growth Corporation, who consistently invest and collaborate to develop new products.

Prominent players in the marijuana testing market includes: