The 'CBD Pet Products Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)' report has been added to ResearchAndMarkets.com's offering.
The global CBD pet products market is anticipated to witness a CAGR of 12% during the forecast period 2022-2027.
During the COVID-19 pandemic, the market studied did not experience any negative consequences. Instead, the sales increased. As there were no new entrants during the pandemic, the existing players enjoyed the oligopoly from the growing demand for CBD pet products. The sales were spiked due to the availability of the products on e-commerce platforms, which made it easier for pet owners to access and have products delivered to their doorsteps during the pandemic-induced lockdowns.
CBD pet supplements are primarily fueled by the increasing consumer awareness of natural supplements and the current spotlight on the medical and therapeutic benefits of cannabis. The unfavorable and stringent government regulations in several developing countries due to social constraints have affected the demand for CBD pet products since cannabis is considered unhealthy for pets. This can be attributed to the lack of awareness among pet owners as well. The lack of accessibility in several areas and the high costs associated with these products further reduce the demand for CBD pet products.
While traditional dog or cat products currently dominate the market, those targeted for equine and other domesticated animals are on the horizon. As pet and animal products are focused on treats, supplements and food additives, therapeutic CBD with anti-anxiety and anti-inflammation properties is expected to remain the top-selling product.
North America dominates the market. CBD pet supplements are primarily fueled by increasing consumer awareness about natural supplements and the current spotlight on the medical and therapeutic benefits of cannabis. Additionally, the rise in the adoption of pets and increasing demand for premium care products are a few factors that are expected to drive the market growth. Moreover, in 2018, in the United States, pet care accounted for nearly 3% of the overall revenue of the legal cannabis industry.
Key Market Trends
Changing Consumer Preferences Toward Organic Healthcare Pet Products
The changing consumer trends toward organic supplements related to food, nutrition and health have crossed over to the pet food industry, resulting in the increasing adoption of CBD supplements in the pet food industry. Dog and cat owners are increasingly turning to cannabidiol (CBD) products for health issues, such as anxiety and joint pain.
A study conducted by the American Pet Products Association in 2019 revealed that nearly 39% of dog owners and 34% of cat owners are likely to prefer CBD-based products for their pets owing to the legalization of cannabis. In contrast, currently, nearly 11% of dog owners and 8% of cat owners are using CBD supplements or treats for their pets. Thus, the potential in the pet marketplace and extensive trade efforts to secure regulatory guidelines suggest that the CBD pet products market will experience higher growth during the forecast period.
In 2021, Pet Releaf partnered with Alphagreen to expand the online distribution of its CBD pet products to Europe. Alphagreen's health and wellness e-commerce platform offers more than 250 brands and almost 2,000 products to European consumers. The portfolio would now include all Pet Releaf products as well.
North America to Drive CBD Pet Sales
North America is traditionally the largest market for pets, primarily owing to the pet humanization trend. The United States is the largest market for CBD pet sales in the North American market, accounting for more than half of the market share. The niche status of the current market is attributed to the governmental and trade regulatory environments related to cannabis, CBD, and hemp. Nonetheless, the Farm Bill passed in December 2018 and the Agricultural Improvement Act of 2018 took significant steps forward by separating hemp and hemp-derived CBD from marijuana-based products, thereby creating ample opportunities for the use of hemp-derived products in the pet food industry.
According to the American Pet Products Association, US pet owners are estimated to have spent about USD 95.5 billion in 2020 on pet supplies, treatments, and veterinary care. As CBD pet products are becoming more readily available and accepted, well-positioned suppliers and distributors will be able to exploit the tremendous opportunities for growth in CBD pet sales.
HempMy Pet, Canna-Pet, Fomo Bones, Wet Noses, Honest Paws, Green Roads of Florida, Joy Organics, Holista Pet and Pet Relief are the key players offering CBD-based pet products in the US market.
Moreover, Nestle Purina is also considering making CBD dog food, while small pet CBD brands are likely to be taken over by companies such as Mars, Nestle, General Mills, JM Smucker and Canopy Growth Corp. Over the years, the much-strengthened market concentration is likely to accelerate the sales of CBD pet products in the North American market.
The global CBD pet products market is a niche market, with various small and medium-sized companies holding a minimal share. However, the ongoing activities of the pet food giants such as Nestle Purina, Mars and JM Smucker, among others, in the CBD industry is likely to ensure a slightly consolidated market. North America, Europe and Asia-Pacific are the major regions with the maximum market competition.