Like the rest of the US CBD market, demand for Pet CBD products has skyrocketed following the passage of the 2018 Farm Bill in December 2018. The US Pet CBD market grew to over 10 times its 2018 size in 2019, producing $321 million in sales, and is projected to reach $563 million by the end of 2020. Extensive media coverage of CBD (short for cannabidiol) and grassroots marketing initiatives by pet CBD companies are boosting consumer demand for pet CBD products. Growth is being driven by pet owners looking for natural alternatives for pets’ medical ailments, especially anxiety, pain, or other serious conditions that have not responded well to other treatments.
The majority of Pet CBD products are positioned for dogs, but with time there have been an increasing number of products developed for the broader pet kingdom, such as cats, birds, and horses. Pet owners have a wide array of Pet CBD products to choose from including tinctures, treats, capsules, topicals, mixing powders, and shampoos, with prices ranging from about $20 for treat packets to $200 for high-dosage or high-volume tinctures. In terms of retail sales, tinctures are the leading Pet CBD category thanks to broad distribution and high unit prices. Tinctures also benefit from their versatility as they can be administered directly to pets using a dropper or spray or added to food or treats. Edibles (e.g., treats and chews) are the second leading Pet CBD category and offer ease of use, more budget friendly prices, and a familiar format. Pet CBD edibles offer a low risk option for mainstream consumers looking to try out pet CBD and those wanting to incorporate a daily supplement into their usual treat-giving routine. Pet CBD capsules are often used by mixing the contents of the capsule with a pet’s food or given inside a treat. Topicals for Pet CBD include balms and lotions which are used to calm irritated skin and paws or for general skin hydration and health.
Strong growth prospects for Pet CBD products has led to explosive growth in the number of brands over the course of 2019, as leading CBD companies such as cbdMD, Charlotte’s Web, and Medterra expand beyond their human CBD offerings to enter the Pet CBD space. In turn, competition from the new brands is leading to share dilution for market leaders such as Pet Releaf, Treatibles, and Canna-Pet despite actual growth in revenues over the year. In the medium term, large pet food players such as Mars and Nestlé are also likely to enter the fray, presenting a looming threat to existing market leaders thanks to their established supply chains, broad retail distribution, and strong brand awareness.
Pet owners’ confidence in Pet CBD products is expected to grow as more clinical data on the health benefits of CBD for pets becomes available and a clear and explicit policy allowing veterinarians to both discuss and recommend CBD products is set forth. In turn, Pet CBD is expected to make up a $1.7 billion market by the end of 2025, driven by more knowledge of and discussions about CBD’s potential benefits, combined with ongoing product innovations from CBD companies.
Last Updated: 1/30/2020