In recent years, the number of brands focused on the cannabidiol (CBD) market has grown significantly. The rapid increase has saturated the market, forcing brands to innovate in order to stay relevant.
One of the areas that some CBD companies have focused on to differentiate themselves from the hundreds of existing brands is the pet market, which has proven to be an attractive avenue for growth.
If you look at the performance of pet-focused companies during the COVID-19 pandemic, you’ll find that these companies have been some of the biggest beneficiaries of the stay at home contracts placed earlier this year.
While hundreds of millions of Americans were under government orders to stay home, animal shelters ran out of pets available for adoption. The increase in the number of American families who have pets has resulted in growth in almost every metric. From the amount of pet food that is sold to the types of veterinary services that are offered, the pet industry has been a ray of hope for an uncertain future.
When it comes to the pet CBD opportunity, we are optimistic about the growth potential associated with the vertical. Pet owners have shown a willingness to spend, and this trend has made itself felt on the CBD side of the industry. Today we’d like to highlight three companies that are focused in the CBD pet market that believe our readers need to know the trend.
Earlier this month CV Sciences (CVSI) announced the launch of PlusCBD ™ Pet, a full line of hemp extracts designed exclusively for dogs and cats. The line of products is made with the same type of hemp extracts used in CV Sciences’ best-selling CBD products, and we will be monitoring how the line of products gains traction.
From a distribution standpoint, CV Sciences plans to expand into the pet specialty distribution channel and the food, drug and bulk retail distribution channel. According to the Brightfield Group, the U.S. pet CBD market grew to $ 321 million in 2019 and is expected to reach $ 563 million by the end of the year.
The growth is being driven by pet owners looking for natural alternatives to manage the medical ailments of pets (e.g. anxiety, pain, or other serious medical conditions) that have not responded well to other treatments, according to the Brightfield Group. The Brightfield Group predicts that the pet CBD market will be a $ 1.7 billion business by the end of 2025 and we will monitor how CV Sciences can penetrate the market.
Charlotte’s Web (CWEB.TO) is considered a leader in the CBD industry and has attractive leverage for the pet side of the market. A few weeks ago we used the company’s paw balm product after taking our dogs on a hike and were impressed with the way the product hydrated and strengthened their skin.
Compared to other dog paw balm products on the market, the Charlotte’s Web product was very reasonably priced. The premium that came with CBD products is one of the main reasons we haven’t bought any CBD products so far. The saturation on the manufacturing side of the industry is starting to benefit the consumer and this is a trend that we are following.
Sensation is a leading US CBD brand looking to go public in the near future. While the company doesn’t have a pet CBD product on the market, we expect more products to hit the market in the near future.
Sensation is seen as emerging in the CBD sector and expects the brand to continue generating significant traction. We are positive about the multi-faceted marketing strategy with which the company has increased its market share in the USA. In the long term, we expect the company to benefit from emerging industries that want the CBD sector and we will monitor how the story unfolds.
Michael Berger is a Managing Partner of StoneBridge Partners LLC. SBP continues to promote market awareness for leading cannabis industry companies in the US and abroad.