In spite of the global economic upheavals that defined 2021, the CBD pet market has still managed to achieve immense growth. A report by Grandview Research estimates a value of $187.5 million by the end of 2021, up from $125 million in 2020. The report further predicts a compound annual growth rate (CAGR) of 58.9% from 2021 to 2028 to reach a value of $4.7 billion.
Here are some insights from the report.
Factors Fuelling the Growth of the CBD Pet Market
The legalization of hemp at the federal level is a primary precipitator of the massive growth of the CBD pet market. The CBD pet market is now mainstream and pet owners have greater access to hemp-derived CBD products. The market has some level of regulation and this instills customer confidence in the quality of the products.
In the last two years that has been an increase in the awareness of the benefits of CBD for pets. Anecdotal evidence has helped to fuel the growth of the industry. CBD companies offering pet products have increased their marketing efforts and through their blogs, they have increased customer education and awareness about the potential of CBD for pets.
The number of pet owners increased during the COVID-19 pandemic period. APPA reports that 11.4 million households acquired new pets in 2020 resulting in an increased demand for pet CBD products. Pet owners turn to CBD to get relief from pain, inflammation, sleep disorders, anxiety, convulsions and seizures, and GI disturbances.
The growth of the CBD market has also resulted in a diversified product range. New entrants into the market have driven competition through the roof and consequently triggered product diversification and competitive pricing. Flavored CBD edibles are an all-time favorite with bacon, chicken, and peanut butter flavors dominating the charts.
Statista indicated that CBD pet edibles were the fastest moving category in 2020, followed by pet tinctures and then topicals. Popular pet CBD brands that dominated the market in 2020 include Honest Paw, Lazarus Naturals, and Joy Organics. Dogs were the greatest consumers of CBD for pets, having a 68% dominance in the market. This comes as no surprise since dogs are the most popular pet category in the whole world.