The pet CBD products market is set to achieve $561 million in sales in 2021, up 30% from 2020, and is expected to reach $1.1 billion in 2026, representing a 15% compound annual growth rate.
This was one of the best-performing product types in 2020, aided by national pet chains Petco and PetSmart starting to sell CBD products in select stores in 2020. Pet CBD consumers are becoming increasingly educated on brands and products as the industry grows, discussing CBD brands with their veterinarians and using CBD for ailments that mirror those of human conditions for their pets.
Across the industry, the shuttering of many physical retail locations stunted discovery of CBD in 2020. In addition to convenience stores, consumers could previously come upon CBD when browsing a beauty retailer, vitamin shop, pet store or medical practitioner’s office. Even with these channels reopened, consumers are not spending time in stores like they once were.
But many customers are still visiting convenience stores, which offers c-stores an added opportunity to capitalize on a demand for CBD pet products. It is also imperative for brands to understand consumer behavior at the channel level and position their products appropriately.
Consumers still report buying CBD at brick-and-mortar channels, even with 50% saying they purchase online. Notable increases are in pharmacies and specialized CBD retailers — as was highlighted in Brightfield Group’s July 2020 CBD report.
Identifying Growth Drivers
Here are Brightfield Group’s 2021 growth drivers of the pet CBD market:
Rising awareness of CBD’s benefits for pets with the anticipated development of more clinical data and clear and explicit policy allowing veterinarians to both discuss and recommend CBD products as appropriate (70% of pet CBD buyers discussed pet CBD brands with their veterinarians).
The ongoing pet humanization trend encouraging “pet parents” to spend lavishly on their pets, including on premium pet foods and treats. While the majority of CBD-infused pet products are designed with dogs in mind, with time there has been an increase number of products for the broader pet kingdom, such as cats, birds and horses — expanding the market even further.
Mass pet retail chains are expanding the number of stores selling pet CBD products and the entry of mass merchandisers (e.g., Target, Walmart) into the market, as well as the potential medium-term participation of pet product manufacturers like Mars and Nestlé.
As the pet CBD market grows, so too will the product types available in retail chains. While tinctures hold the top spot, edibles will see the fastest growth over the forecast period. As more mainstream consumers come into the market, many will look to the more budget-friendly and familiar format of treats to administer CBD to their pets.
Connor Skelly is the marketing director for Brightfield Group, a consumer insights and market intelligence firm for the CBD and cannabis industries. Brightfield works with well-known brands, manufacturers and agencies across the world, providing strategic data, insights and guidance for these dynamic markets.