CBD Products Are 'Exploding' In Pet Sector
By Jelena Martinovic.
Hemp-based CBD pet products will represent 3-5% of all hemp CBD sales, with conversion rates of 37%, according to a new report from Nielsen Holdings PLC (NYSE:NLSN) and Headset, a provider of analytics service for the cannabis industry.
The U.S. consumer packaged goods industry will prosper as well given the increased interest in CBD pet products, according to the 2020 Pet Industry Green Paper.
"Despite open questions around regulations, hemp-CBD is exploding in the pet space. With Nielsen's and Headset's Pet Industry Green Paper, companies will gain a better understanding of the nuanced cannabis sector, its buyers, marketed packaging claims and the rapidly evolving product landscape to capitalize on emerging trends and opportunities," said Maria Lange, Nielsen's vice president of strategic initiatives.
Pet CBD products are currently a small portion of the pet space and accounted for about $1.5 million in sales in the third quarter of 2019, said Liz Connors, director of analytics for Headset.
"We expect sales to remain stable in 2020."
Between the first quarter of 2018 and the third quarter of 2019, pet products sold at regulated recreational cannabis retailers in California, Colorado and Nevada accounted for more than $9.4 million in sales, according to Nielsen and Headset.
Legal cannabis sales are expected to surpass $41 billion over the next five years.
Benzinga's Cannabis Capital Conference returns to Miami Feb. 24-25 with North America's largest B2B cannabis gathering, bringing together capital, cannabis executives, thought leaders and more!
Other key insights from the report include:
- 74% of CBD buyers who have pets, while 24% of pet owners are users of hemp-CBD, or use it for their pet.
- Almost 26% of U.S. adults who are dog owners use hemp-CBD products. Half of them already use it for their dog, while the other half use it only for themselves.
- Consumers of CBD are fairly spread over the country, across urban, rural and suburban markets,. CBD is slightly more popular with women.
- The average price per pound for CBD dog treats is two times the cost of the average dog treat
- There’s a gap in average prices between dog and cat hemp/CBD-based products. While the average price of dog tinctures and powders is almost double the price of those for cats, the gap is less when it comes to the average price of treats.
Photo by Javier Hasse.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.