March 2, 2021

Key Insights from The IMPACT SERIES: Disrupting Petcare

3min read

The CBD and wellness segment has seen significant growth in the last few years, with brands diversifying their product offerings in the food and beverage, supplement, and most recently, the petcare space.

Alex Khourdaji – Analyst

March 2nd, 2021


 

As brands seek to maintain a competitive edge, many have expanded their position into the petcare segment. Identical to products designed for humans, pet CBD products come in various flavours and strengths and also formats for certain pets.

Prohibition Partners estimates that the global market for pet CBD reached an estimated US$214.44 million in 2020, with the majority of sales occurring in North America followed by sales in Europe. By 2024, Prohibition Partners projects global sales of CBD petcare products to reach US$424.38 million.

As consumers seek new ways to enrich their quality of life using CBD products, pet owners are using pet CBD products to ensure their dogs, cats, and horses are receiving comprehensive care using enriched foods and supplements. The increase in pet CBD product sales directly correlates with the growing trend of pet humanisation. Pet humanisation is the process of characterising pets as children, regarding pets with the same amount of compassion and empathy as parents would their children. Thereby, this has increased the demand for pet CBD wellness and care products on a par with human products, such as health and wellness oils, topicals, supplements, foods and hair-care products. Pet humanisation had a substantial impact on the overall petcare industry as pet owners have begun to spend more on high-end and premium products to ensure their pets experience the best quality of life available.

Alongside the pet humanisation trend, the rise in pet adoption by millennials and single households had a positive impact on pet CBD sales. Due to the stress and loneliness factors associated with COVID-19, pet adoption rose with some dog shelters in the US seeing a 1,000% increase in foster applications.

Between March and May 2020, Prohibition Partners surveyed 5,449 pet owners aged over 16. A variety of participants were selected from Canada, the US, Germany, France, Italy, Spain, the UK and Japan to assess the current consumer behaviours regarding CBD related products in the petcare space. One of the many consumer survey findings was that males spent more on pet CBD products than female counterparts.

In terms of gender, 55% of pet owners who have bought pet CBD products are male compared to 45% of female purchasers. This 10% difference mirrors the current pet humanisation trend that millennial male pet owners are more willing to pamper their pets than female pet owners. Thus, males are more likely to purchase organic food and pet CBD products for their animal companions as compared to females.

Although pet CBD products have seen a considerable rise in sales recently, the regulatory framework concerning these products is still grey. Like the CBD market, which is nascent with a growing demand amongst consumers, regulators find it challenging to keep up with setting regulations, especially when new firms and brands enter the market daily. This is particularly the case when examining the pet CBD space. Currently, regulators predominantly focus on CBD for human consumption, often neglecting or being unable to keep up with the growing pet CBD sector. No pet CBD product has gained marketing approval in the EU, nor has the FDA approved any products in the US.

The UK government still places pet CBD products under the jurisdiction of the Veterinary Medicines Directorate (VMD). The lack of regulation directly correlates with the lack of scientific research on the effects of CBD on animals. However, few studies have been conducted in North America that have demonstrated CBD’s potential medical benefits in pets. Comparable to humans, CBD products are thought to have similar medical effects in treating pet conditions like seizures, nausea, stress, anxiety, arthritis, and back pain.

The future and the acceptance of the CBD petcare market commercially and in the veterinary field heavily rely on research and studies. Like many consumers, regulators and veterinarian associations are looking for substantial evidence to give CBD pet products the green light. Thus, it is rather soothing to note that many clinical trials on animals are underway as companies in the industry have partnered with various universities and research centres to examine the potential therapeutic and medical effects of CBD on animals.

Prohibition Partners IMPACT SERIES: Disrupting Petcare takes a deep dive into the current state of the CBD pet care market and consumer trends. The report includes:

  • Legislation and Regulation
  • Market Size and Forecasts
  • Market Trends
  • Consumer Data
  • Companies and Brand Activity
  • The Future of the Industry

DOWNLOAD THE FREE EXECUTIVE SUMMARY HERE

Key Insights from The IMPACT SERIES: Disrupting Petcare

View All