In recent days the demand for CBD has not only been growing for people across North America but also for their furry four-legged friends.
On Tuesday, Research and Markets (R&M) announced that the international cannabidiol (CBD) pet products market was projected to observe a compound annual growth rate (CAGR) of 12 per cent between 2022-2027.
R&M states that CBD pet supplement sales are primarily driven by a contemporary focus on the health benefits of cannabis and a growing cognizance of natural health products among consumers.
According to R&M, despite the trials and difficulties associated with the pandemic, sales and demand for CBD pet products only increased. This rise in revenue within the market was partially attributed to easy purchase access for products via e-commerce platforms, making it much more convenient for pet owners to have their goods delivered instead of going out during the lockdowns.
Founded in 2002 and headquartered in Dublin, Ireland — R&M is the world’s largest research market store. R&M also claims to offer insight into over 800 industries and has had over 450 clients from the Fortune 500, the largest companies in America.
Although dog and cat products currently account for the majority of consumer spending in the market, R&M says that CBD products designed for horses and other animals are currently in the works. Animal CBD products with therapeutic, anti-inflammation and anti-anxiety benefits are anticipated to continue being the most popular.
North America currently dominates the CBD pet market, and rising rates of pet adoption combined with a growing demand for high-grade care products are additional factors propelling market growth forward. In 2018, almost 3 per cent of revenue generated by the legal cannabis industry was attributed to pet care, according to R&M.
R&M cites that a study from the American Pet Products Association (APPA) in 2019 showed that 34 per cent of feline owners and almost 39 per cent of dog owners would prefer CBD-based merchandise for their pets post-cannabis legalization. That same study showed that 8 per cent of cat owners and almost 11 per cent of dog owners are utilizing CBD health and wellness supplements or treats for their furry critters.
The United States accounts for over 50 per cent of the market share within North America and is the primary contributor to CBD pet product sales in the whole continent. According to studies from the APPA, pet owners in the U.S. spent approximately US$95.5 billion on veterinary services, pet-related items and treatments in 2020.
R&M claims that as CBD pet products become more easily accessible and popular, established distributors and suppliers will be able to take advantage of immense growth opportunities attributed to CBD pet sales.
In recent days, Nestle Purina has allegedly been considering the creation of CBD dog food. R&M believes that small pet CBD brands could likely be acquired by more established companies such as Canopy Growth Corp., Mars Inc., JM Smucker Co. and Nestle, General Mills Inc. The inherent strong market concentration from those acquisitions will likely boost sales rates for CBD pet products in North America for years to come.
Pet Relief, HempMy Pet, Holista Pet, Canna-Pet, Joy Organics, Fomo Bones, Green Roads of Florida and Honest Paws are the key drivers of the U.S. CBD-based pet product market, according to R&M.