01 The Surge in Research and Development Activities to Drive the Market Growth The surge in technical developments, combined with increased expenditure in research and development activities, is driving the demand for cannabis testing. In 2017, the National Institute of Health (NIH) invested about USD 140 million to support more than 300 research projects on cannabinoids. Escalating investment in R&D activities for exploring new medical applications of cannabis will spur the cannabis testing industry growth in the future. Key players in the industry are focusing on establishing new state-of-the-art cannabis research laboratories in key regions to offer various cannabis testing services. For instance, in April 2018, Gala Medicinal, Inc., in compliance with Medical Marijuana Control and Safety Act, announced plans to develop the first state-of-the-art research facility that would fulfill the current ISO standards established by the City of Long Beach and the State of California.In December 2018, Gala Pharmaceutical California Inc., a subsidiary of Gala Pharmaceutical, Inc., received a Temporary License from the State of California to construct its flagship cannabis testing facility in Long Beach, California, the U.S. In addition, increasing focus to meet the growing needs of hemp and cannabis cultivators will significantly increase the number of cannabis testing laboratory setups globally.
02 Legal Utilization of Cannabis in Medicinal Products to Accelerate the Market Growth The rising regulation of medicinal cannabis across different nations is also a vital factor affecting the development of the cannabis testing services industry. Farm Bill, for example, was proposed in 2018 to legalize hemp farming in the U.S. Many countries in Europe and Asia are projected to legalize medicinal cannabis for the growing population of patients.Medical cannabis is proven to be effective in various medical applications, such as reducing nausea caused due to chemotherapy, stimulating appetite in AIDS patients, controlling muscular spasms in multiple sclerosis patients, and reducing intraocular pressure in patients with glaucoma. Increasing use of cannabis for medical purposes and its potential benefits have led to the legalization of cannabis in various countries across the globe. For instance, currently, more than 30 countries have legalized the use of cannabis for medical treatment, which includes Australia, Canada, North Korea, Spain, Portugal, the U.K., the Netherlands, Germany, Italy, Israel, and Brazil. In addition, 25 states have legalized medicinal cannabis in the U.S.; and four states, including Colorado, Washington, Oregon, and Alaska, have legalized cannabis for medical and recreational use.
March 2026 Eurofins Scientific expanded its cannabis testing capabilities by strengthening analytical laboratory services for cannabinoid profiling, contaminants screening, potency testing, and regulatory compliance across emerging cannabis markets.
January 2026 SC Labs expanded its cannabis and hemp testing laboratory network with enhanced analytical capabilities, including advanced testing methods for potency, pesticides, microbial contamination, and product safety verification.
November 2025 Agilent Technologies expanded its cannabis testing solutions portfolio with advanced chromatography and mass spectrometry technologies designed to improve accuracy, throughput, and compliance testing for cannabis laboratories.
September 2025 Shimadzu Corporation expanded its analytical testing solutions for cannabis laboratories by introducing enhanced chromatography-based workflows supporting cannabinoid analysis, residual solvent testing, and quality control applications.