Industry Insider: 21st Century Catnip - The Rise of CBD for Pets
CBD is the fastest-growing segment of the popular pet supplement industry!
Article originally appeared in the online publication “Trends” and was written by Mark Dent.
What you need to know:
Pet supplements have risen in popularity because of the increase in pet ownership and humanization of pets. The $636m supplement market is expected to grow at a 5% rate, and CBD is leading the way. CBD sales are expected to increase at a 57% CAGR.
How you can capitalize:
Make a product backed by trials and testing. One industry expert believes 90% of current companies selling pet CBD are looking for quick profits.
Gamble on making pet food with CBD. For now, CBD is restricted to pet supplements. Experts believe it will eventually be allowed in food and dog treats, creating a wider market.
Last month in Las Vegas, the Mandalay Bay Convention Center transformed into Super Zoo, the largest gathering of pet retailers in North America. The thousands of people who attended woke up to dog yoga and ended their days with talks on pet sustainability. In between, on the tradeshow floor, they saw ungodly amounts of hemp.
For people, CBD and hemp have never been hotter, and pets are next. According to estimates from True Leaf and the research company Packaged Facts, pet CBD sales, were valued at $13m in 2017 and $20m this year. True Leaf anticipates they will grow at a 57% CAGR during the next several years. The overall pet supplement and wellness market is worth $636m and is expected to keep chugging at a 5% growth rate.
This sector of the pet industry thrives on the personification of pets. Some 90% of pet owners consider their pets family and treat them as such. They seek animal versions of the same supplements and wellness products they use: pills, chews and sprays that combat everything from depression to Alzheimer’s to joint pain. Just like with humans, CBD is being used to treat animals’ chronic pain, seizures and anxiety. CBD is most commonly used for dogs but also for cats and horses.
Bill Bookout, the founder and president of the National Animal Supplement Council, figured at least 150 companies exhibiting hemp and CBD-related pet supplements were at Super Zoo, double the number he had seen at other recent conventions. Darcy Bomford, the founder of True Leaf, which at four years old is a veteran in the pet CBD space, estimated the number of Super Zoo vendors specializing in CBD at 70. He pegged the number of companies offering a CBD product in some form at more than 300.
Three years ago at conferences, he remembers the hemp-CBD section featuring True Leaf and two other companies. “I’ve never seen anything like it,” Bomford says of the growth.
But wait... there's more...
While you’re here, how about a few fun facts?
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*Large consumer brands (Proctor and Gamble, Nestle, etc) spending a record high amount of money buying small, niche drink startups vs. developing their own.
*Dozens of patents for popular medicines are expiring, and a handful of two-year-old startups are making billions selling the generic version of drugs online.