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Cannabis lab testing will experience a boom with increasing legalization and in turn, increasing regulation and testing requirements.


This November, voters in nine US states will weigh in on ballot initiatives to legalize cannabis—whether for medical use only, or for all adults 21-and-over. California, the nation’s most populous state—and the world’s sixth largest economy—is being watched especially closely. If passed by voters, California’s Adult Use of Marijuana Act, a “tax and regulate” measure for recreational use of cannabis, could present some social challenges—but also build up a relatively new legal industry in the state’s economy. The legal sale of cannabis in any of the nine states will generate spin-off economic effects.

Cannabis has been consumed in large amounts for decades in the United States, but increased regulatory scrutiny will mandate that all cannabis products legally sold in the United States must be tested for potency and purity by a state-licensed cannabis analytic laboratory before reaching consumers. This means a massive increased need for these labs—and a growing market for lab instrument manufacturers and lab suppliers.

A 2016 report by Arcview Market Research, which tracks the industry, predicts the annual sales figure for legal cannabis will grow from $5.7 billion (in 2015) to over $22 billion by 2020. Similarly, a 2015 report by GreenWave Advisors, LLC forecasts total annual legal cannabis sales in the range of $21–25 billion by 2020, with total annual revenues for cannabis testing labs being about $850 million.

Author: The LabX Editorial Team | October 21, 2016

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