As the global pet care market continues it seemingly never-ending rise, year after year all things point to the fact that CBD infused products will be among the winners in the race to revenues. Given the sheer size of this industry, it's no wonder cannabis companies are expecting CBD-for-pets to garner a large share of the market. Here are some background projection numbers for the overall pet care market: Statista.com presents a forecast in pet store revenue in the United States from 2018 to 2023. It is projected that U.S. pet store sales will grow from around 19.5 billion U.S. dollars in 2018 to approximately 22.39 billion U.S. dollars by 2023; and according to a report by Grand View Research the global pet care market is expected to reach USD 202.6 billion by 2025. Rise in the adoption of pets and growing demand for premium care products are few factors expected to drive market growth. The global pet care market size was estimated at USD 131.7 billion in 2016 and is expected to grow with CAGR of 4.9% from 2016 to 2025. U.S. held the largest share in market in 2016 due to rising animal healthcare expenditure and growing awareness of animal health in the country. Active companies in the industry making moves to ready that include: Choom Holdings Inc., Fire & Flower Holdings Corp.(FAF), Curaleaf Holdings, Inc., Trulieve Cannabis Corporation, Cannabis Strategies Acquisition Corp.
A report focused solely on the CBD pet market says: "Pet-and-animal product sales are estimated to reach USD 125 million by 2022, representing a 5-year CAGR of 57%, among the fastest-growing sectors in the CBD market," and it's easy to see why cannabis companies are pouncing on the opportunity. While traditional dog or cat products currently predominate, those targeted for equine and other domesticated animals are on the horizon. As pet-and-animal sales have focused on treat supplements and food additives, CBD with anti-anxiety and anti-inflammation properties remain the top-selling segment.
Choom, an emerging adult and medical use cannabis company that has secured one of the largest national retail networks in Canada, is pleased to announce that it has signed a memorandum of understanding ("MOU") with Better Choice Company, Inc. for the exclusive Canadian distribution rights to Better Choice's cannabidiol ("CBD") Bona Vida brand of products targeted for animal health and wellness once approved for sale in Canada. The terms of the MOU are not material.
According to the American Pet Products Association, U.S. pet owners are estimated to have spent over $70 billion in 2018 on pet supplies, treatments and veterinary care. As CBD pet products become more readily available and accepted, well positioned suppliers and distributors will be able to exploit the tremendous opportunities for growth in the CBD pet sales.
By Lindsay Beaton
This country is straddling the line between developing and developed as more of its citizens see the value in pet ownership.
By Lindsay Beaton