CBD Pet Products

Dog being given a CBD pet product - CBD oil
A dog being given CBD oil. CBD oil is usually given to pets to relieve joint pain. Increasingly it is given to treat anxiety and stress-related disorders. Joint pain can be a consequence of obesity. October 14, 2020, is National Pet Obesity Awareness Day. Click the picture to be taken to the Association for Pet Obesity Prevention website for more information.
Geographic reference: World
Year: 2019 and 2027
Market size: $27.7 million and $399.2 million, respectively

Today’s market size shows the global revenues for CBD-infused pet products in 2019 and projected for 2027.1 The CBD pet product market is a minuscule segment in the overall $4.6 billion CBD product market,2 however, the compound annual growth rate (CAGR) is expected to be nearly double that of the overall market, 40.3% vs. 22.2% in the near future.3 Growth in this industry is unsurprising. According to a Gallup poll, 64% of people in the United States alone are familiar with CBD and/or CBD products. In 2019, Consumer Reports announced that 64 million Americans had tried CBD products between 2017 and 2019, with 22% saying it helped them supplement or replace over-the-counter or prescription drugs. Twenty-four percent of pet owners consume CBD products either for themselves or for their pets.

As more CBD products become available, more people are expected to try these products. And, for those that are helped by them, they may be more inclined to try CBD products on their pets. Even those that have not tried CBD themselves, but have heard the health claims, may consider it for their pets’ health, especially those looking for natural and organic remedies.

CBD is legal in most countries around the world, however, some countries where it’s legal impose regulations about who can grow, produce, or purchase it. In the United States, President Donald Trump signed the Agriculture Improvement Act of 2018, commonly called the Farm Bill. This bill made hemp and hemp products legal by modifying the Controlled Substance Act to exclude hemp from the definition of marijuana and excludes the THC in hemp from being classified as a Schedule I controlled substance, as long as the THC content does not exceed 0.3 percent.

The U.S. Food and Drug Administration (FDA) has the authority to regulate cannabis and cannabis-derived compounds, including hemp-derived CBD under the Federal Food, Drug, and Cosmetics Act. Marketing CBD products promoting use in the “diagnosis, cure, mitigation, treatment or prevention of diseases” without first getting FDA approval and selling unapproved products with unsubstantiated health claims violate this Act.4 To date, only one CBD product has been approved by the FDA, a prescription drug used to treat two rare forms of epilepsy in humans.

In 2019, there were more than 4 dozen types of products containing CBD on the market, with three — oil/tincture, treats/chews, and topicals — geared toward pets. The pet food-grade segment of the market accounted for the largest market share, more than 60%, as pet parents spend more on products for their pets’ health. The therapeutic grade segment of the market is expected to see significant growth through 2027 as CBD oils become increasingly popular to treat inflammation and pain. According to the Association for Pet Obesity Prevention, about 56% of dogs and 60% of cats in the United States are overweight or obese.4 As with humans, obesity in pets can lead to joint pain. As pets age, joint pain from arthritis becomes a concern. The American Pet Products Association reports that 25% of dogs in the U.S. suffer from arthritis. In 2019, the treatment of joint pain disorders claimed a 23.6% revenue share with CBD oil driving this segment of the market. Revenues from CBD products used to treat anxiety and stress-related disorders in pets is expected to grow the fastest through 2027. In a survey conducted by the cannabis market research firm Brightfield Group, more than 60% of human CBD users have taken it for anxiety.

The easy online availability of CBD products without a prescription led to a more than 40% share for the e-commerce segment in 2019. Discounted prices and increasing use of smartphones and the internet in developing countries are expected to contribute to e-commerce growth. Pet specialty stores held the second-highest revenue share. North America accounted for more than 35% of global revenues. The passage of the Farm Bill as well as several major manufacturers located in the region contribute to growth there. In addition, according to a survey conducted by the American Pet Products Association, 34% of cat owners and 39% of dog owners prefer CBD-infused pet products. Europe also held a significant market share in 2019 as CBD is legal in most countries in the region, and both the pet population and people’s expenditures on their pets have been increasing. The Asia-Pacific region is expected to experience significant growth through 2027 due to a growing pet population, higher disposable income, and an unregulated market.

Leading companies include Honest Paws, Canna-Pet, Fomo Bones, Pet Relief, HolistaPet, Joy Organics, Wet Noses, CBD Living, Pet stock, Petco, and Charlotte’s Web. While CBD pet products exist in legal limbo in the United States, products from Honest Paws and Charlotte’s Web have earned the National Animal Supplement Council (NASC) Quality Seal. NASC is an independent agency that performs facility audits on companies that manufacture veterinary supplements. To obtain permission to display the Quality Seal on their products, companies must pass an independent facility audit every two years and demonstrate ongoing compliance with a set of guidelines, two of which include: “having an adverse event reporting/complaint system in place to monitor and evaluate products in real time” and “submitting to random product testing by an independent lab to ensure ingredients meet label claim.”6

To capitalize on the growing popularity of CBD pet products large companies such as Nestlé, Mars Inc., and General Mills plan to enter the market in the near future either with new product launches, by acquiring companies that currently manufacture CBD products, or with collaboration. In February 2019, Martha Stewart collaborated with Canopy Growth Corp., a Canadian cannabis research, product development, and production company, to develop a line of CBD infused animal health products.

1 CBD stands for cannabidiol, the nonpsycoactive ingredient in hemp and marijuana. THC stands for tetrahyrocannabinols. It’s the psychoactive ingredient in these plants.
2 Data for 2018.
3 Revenue for CBD pet products is expected to grow at a compound annual growth rate (CAGR) of 40.3% from 2020 to 2027. Revenue for CBD products overall is expected to grow at a CAGR of 22.2% from 2019 to 2025.
4 Source: Harold B. Hilborn, “2018 Farm Bill Legalizes Hemp, but Obstacles to Sale of CBD Products Remain,” The National Law Review, March 5, 2019 available online here.
5 October 14, 2020 is National Pet Obesity Awareness Day
6 Source: “The NASC Quality Seal,” National Animal Supplement Council available online here.

Sources: “CBD Pet Market Size, Share & Trends Analysis Report by Product (Therapeutic Grade, Food Grade), by Application (Joint Pain, Anxiety), by End-use, by Region (North America, Europe, APAC, Latin America, MEA), and Segment Forecasts, 2020 – 2027,” Grand View Research Report Summary, August 2020 available online here; “CBD Pet Market Size Worth $399.2 Million by 2027 | CAGR: 40.3%: Grand View Research, Inc.,” CISION PR Newswire, September 16, 2020 available online here; “Cannabidiol Market Size, Share & Trends Analysis Report by Source Type (Hemp, Marijuana), by Distribution Channel (B2B, B2C), by End Use, by Region, and Segment Forecasts, 2019 – 2025,” Grand View Research Report Summary, December 2019 available online here; Harold B. Hilborn, “2018 Farm Bill Legalizes Hemp, but Obstacles to Sale of CBD Products Remain,” The National Law Review, March 5, 2019 available online here; Dawn MacKeen, “What are the Benefits of CBD?” The New York Times, October 16, 2019 available online here; “The NASC Quality Seal,” National Animal Supplement Council available online here; “CBD Products are Everywhere But Do They Work?” Harvard Women’s Health Watch, August 2019 available online here; “CBD Statistics 2020,” The Checkup, May 13, 2020 available online here; “52 CBD Products on the Market in 2019,” Ministry of Hemp, September 30, 2019 available online here.
Image source: RR_Medicinals, “dog-husky-cbd-oil-cbd-hemp-oil-4432830,” Pixabay, August 27, 2019 available online here.

Pet Insurance

pet insurance
In 2019, 84.9 million households owned at least one pet in the United States with 63.4 million households owning dogs and 42.7 households owning cats. At some time in their lives most, if not all, of these pets will need medical care, whether that be spaying or neutering, routine physical exams and immunizations, or more specialized care. Veterinary care is expensive. Pet owners reported paying an average of $160 per year for routine exams for cats and $212 for dogs. Average surgical costs climb into the hundreds, with some types of specialized care, such as chemotherapy for cancer or cataract surgery, costing thousands of dollars. Add to that the cost of medications and some pet parents may need to spend upwards of several hundred to several thousand dollars a year to keep their pets healthy. Overall, in 2019, pet parents spent an estimated $29.3 billion on veterinary care in the U.S., up from $27.7 billion in 2018.1 Knowing that pet health care is expensive, an increasing number of pet parents are buying pet insurance policies.

Today’s market size shows the total amount of premiums paid for pet health insurance in 2014 and 2018 and projected for 2022 in the United States. The first animal insurance policy was written in Sweden in 1890. At the time, coverage focused on horses and livestock. In the United States, TV star Lassie received the first pet insurance policy in 1982. By 2018, 2.16 million pets were insured, an 18% increase from the year before. An overwhelming majority of policies, 98%, were accident and illness plans or insurance with embedded wellness plans. Premiums for accident and illness plans averaged $529 per year. The other two percent were accident-only policies, with premiums averaging $177 per year. In North America, 88.9% of policies provide coverage for dogs.

The pet health insurance market will continue to grow according to a report2 by the research firm Packaged Facts. Insurance companies’ use of their websites and social media for marketing as well as partnerships with veterinarians, animal shelters and breeders are expected to increase consumer awareness of insurance offerings and discounts. The use of technology to handle customer interactions more efficiently as well as expanding coverage to pets other than cats and dogs will also contribute to future growth in the industry according to the report.

1 Figures are for veterinary care and product sales. According to the American Pet Products Association: “In addition to routine veterinary care, surgical procedures and sales of pharmaceuticals and other products through veterinary clinics are now included. With clinics appearing in major retailers’ stores and veterinary telemedicine platforms on the rise, veterinary services are becoming more accessible.”
2 Pet Insurance in the U.S., 6th Edition

Geographic reference: United States
Year: 2014, 2018 and 2022
Market size: $588.4 million, $1.30 billion and $2 billion, respectively
Sources: State of the Industry Report 2019, North American Pet Health Insurance Association, June 11, 2019 available online here; “Five Trends That Will Double The U.S. Pet Health Insurance Market by 2022,” Veterinary Practice News, October 6, 2018 available online here; “Pet Industry Market Size & Ownership Statistics,” American Pet Products Association available online here; “Americans’ Pet Spending Reaches Record-Breaking High: $95.7 Billion,” American Pet Products Association Press Release, February 27, 2020 available online here; “History of Pet Health Insurance,” North American Pet Health Insurance Association available online here; Grace Schneider, “Pet Insurance Company Success is Off the Leash,” USA Today for the Lansing State Journal, February 27, 2019, page 3B.
Image source: Seaq68, “nature-friends-dog-pet-woman-suit-3042751,” Pixabay, December 27, 2017 available online here.

Pet Technology

cat and computer technology

Do you own a fitness tracker? Does your pet?

A decade ago, pet technology consisted of automated feeders, waterers, and litterboxes. Electronic toys, training aids, and GPS tracking implants were also popular. While these devices are still popular, newer pet technology incorporates smartphone apps. Forty-one percent of pet parents who use pet technology report that technology gives them a better sense of their pet’s health. Health and nutrition apps are the most popular form of pet tech, with 24% of tech-savvy pet parents using them.

As more people turn to fitness trackers to monitor their own health, more pet parents are doing the same with their pets. Fitness tracker collars track the animal’s activity level, steps taken, and sleep. More sophisticated trackers link to smart feeders and smart water dishes that monitor how much the pet is eating and drinking. Owners can sync the data to a smartphone app and, if given permission to access the data, their veterinarian will have a more thorough profile of the pet’s health status. As a result, health problems may be able to be diagnosed and treated earlier.

Pet technology can be used for more than health monitoring. A study by Zulily found that 84% of millennial pet parents worried about their pets while they were away from home. To ease the worry, some pet parents have installed pet monitoring devices in their home to check in on their pets throughout the day. In some cases, cameras controlled by smartphone apps not only allow users to see what their pets are up to, but also allow them to talk to their pets. Some smart toys have built-in cameras that can be monitored from afar and controlled by a smartphone, allowing the pet and pet parent to interact. Other toys can be programmed to activate at a preset time to provide enrichment to pets when the owner is away.

Today’s market size shows the total sales of pet technology items in 2018 in the United States. This represented an 11% increase from 2017 but was still a small part of the $4.9 billion dog and cat durable products market. In a survey by Michelson Found Animals, an animal welfare nonprofit organization, 56% of pet parents report owning special technological products specifically for their pet.

Geographic reference: United States
Year: 2018
Market size: $565 million
Sources: Pamela N. Danziger, “Pets Are Going Digital: The Brands Pioneering The $565 Million Market for Smart Pet Products,” Forbes, January 30, 2019 available online here; “3 Pet Industry Trends to Watch in 2019,” Pet Product News, December 12, 2018 available online here; David Lummis, “How Pet Tech Will Impact The Future of The Pet Market,” Pet Product News, August 15, 2018 available online here.
Image source: Wilson Afonso from Sydney, Australia [CC BY 2.0], via Wikimedia Commons. Use of image does not constitute endorsement.

Pet Insurance

pet dog and woman in nature

In 2017, pet parents in the United States owned more than 393 million animals, nearly 184 million of which were cats and dogs. At some time in their lives most, if not all, of these pets will need medical care, whether that be spaying or neutering, routine physical exams and immunizations, or more specialized care. Veterinary care is expensive. Pet owners reported paying an average of $182 per year for routine exams for cats and $257 for dogs. Average surgical costs climb into the hundreds, with some types of specialized care, such as chemotherapy for cancer or cataract surgery, costing thousands of dollars. Add to that the cost of medications and some pet parents may need to spend upwards of several hundred to several thousand dollars a year to keep their pets healthy. Overall, in 2018, pet parents spent an estimated $18.26 billion on veterinary care in the U.S., up from $17.07 billion in 2017. Knowing that pet health care is expensive, an increasing number of pet parents are buying pet insurance policies.

Today’s market size shows the total amount of premiums paid for pet health insurance in 2013 and 2017 and projected for 2022 in the United States. The first animal insurance policy was written in Sweden in 1890. At the time, coverage focused on horses and livestock. In the United States, TV star Lassie received the first pet insurance policy in 1982. By 2017, 1.83 million pets were insured, a 17.5% increase from the year before. An overwhelming majority of policies, 98%, were accident and illness plans or insurance with embedded wellness plans. Premiums for accident and illness plans averaged $516 per year. The other two percent were accident-only policies, with premiums averaging $181 per year. In North America, 88.9% of policies provide coverage for dogs.

The pet health insurance market will continue to grow according to a report1 by the research firm Packaged Facts. Insurance companies’ use of their websites and social media for marketing as well as partnerships with veterinarians, animal shelters and breeders are expected to increase consumer awareness of insurance offerings and discounts. The use of technology to handle customer interactions more efficiently as well as expanding coverage to pets other than cats and dogs will also contribute to future growth in the industry according to the report.

1 Pet Insurance in the U.S., 6th Edition

Geographic reference: United States
Year: 2013, 2017 and 2022
Market size: $499.8 million, $1.03 billion and $2 billion, respectively
Sources: State of the Industry Report 2018 Highlights, North American Pet Health Insurance Association, April 2018 available online here; “Five Trends That Will Double The U.S. Pet Health Insurance Market by 2022,” Veterinary Practice News, October 6, 2018 available online here; “Pet Industry Market Size & Ownership Statistics,” American Pet Products Association available online here; “History of Pet Health Insurance,” North American Pet Health Insurance Association available online here; Grace Schneider, “Pet Insurance Company Success is Off the Leash,” USA Today for the Lansing State Journal, February 27, 2019, page 3B.
Image source: Seaq68, “nature-friends-dog-pet-woman-suit-3042751,” Pixabay, December 27, 2017 available online here.

Dog Walking Services

dog walkingAccording to the 2017-2018 APPA National Pet Owners Survey, 84.6 million households in the United States own a pet. This equates to 68% of all U.S. households, up from 56% thirty years earlier. The total number of pet dogs exceeds the number of pet-owning households by 5.1 million. Many households are caring for multiple dogs.

Owners spent more than $66.7 billion dollars on their pets in 2016. Spending for 2017 was expected to increase by nearly $3 billion. Most people who own pets consider them part of the family. Their spending reflects that attitude. Besides spending on the basics such as food and healthcare, many owners spend money on pet services such as grooming, boarding, pet sitting and dog walking. In 2016 owners spent a total of $5.76 billion on all types of pet services and were expected to spend even more in 2017.

Today’s market size shows the total amount earned by professional dog walkers in 2017. There were 27,838 dog walking businesses in the United States employing 28,576 people, according to IBISWorld.

Geographic reference: United States
Year: 2017
Market size: $1 billion
Sources: “Dog Walking Services in the US: Market Research Report,” IBISWorld, September 2017 available online here; “Pet Industry Market Size & Ownership Statistics,” American Pet Products Association Press Release available online here.
Image source: robynhobson, “park-dog-walk-entrepreneur-606334,” Pixabay, January 1, 2000 available online here.

Alternative Pet Care Services

With the slow economy, many Americans are cutting back on spending in many areas of their lives. Among pet owners, spending on pets does not seem to be one of these areas. In 2012, pet owners spent $53 billion on pet food, veterinary care and other pet-related services, up 5 percent from 2011. Included in this spending was alternative veterinary care services such as acupuncture.

Today’s market size shows the amount spent by pet owners in the United States on alternative veterinary care in 2012.

Geographic reference: United States
Year: 2012
Market size: $12.5 billion
Source: “Los Angeles: Americans Spent $53B on Pets in 2012,” Lansing State Journal, February 24, 2012, page 5A.
Original source: USA Today
Posted on February 26, 2013

Veterinary Services

According to the American Pet Products Association, 62% of households in the United States (72.9 million) owned at least one pet in 2011. From 2006 to 2011, the price of veterinary care increased 46%. Data show the amount pet owners spent on veterinary services in 2011. This was slightly more than 25% of all pet-related spending by pet owners. In 2012, spending on veterinary care is expected to rise to $13.6 billion.

Geographic reference: United States
Year: 2011
Market Size: $13.4 billion
Source: “Industry Statistics & Trends,” American Pet Products Association, available online here and ASPCA Pet Health Insurance: New Member’s Guide to Coverage, 2012.
Posted on September 18, 2012

Veterinary Services

A sleepy looking Katie the Beagle

The downturn in the U.S. economy has not spared many but there is always some variation in how such a sharp economic slowdown hits some industries versus others. Veterinarians are among those who often see their base business less impacted than others. While dealing with declining revenues in 2009, veterinary service providers saw a decline of only 0.6% between 2008 and 2009. Of the 27 5-digit NAICS (North American Industrial Classification System) industries in the professional services sector, the veterinary services industry was one of four that saw revenues decline by 0.6% or less between 2008 and 2009. Many other professional service providers saw revenues decline by 15% or more.

Today’s market share is based on the estimated revenues earned by veterinary service providers in the United States in 2009.

Geographic reference: United States
Year: 2009
Market size: $25.64 billion
Source: “Table 6.1. Professional, Scientific, and Technical Services (NAICS 54) – Estimated Revenue for Taxable Firms: 2001 Through 2009,” page 1 and 2 of an extract from Service Annual Survey: 2009, available online here.
Original source: U.S. Bureau of the Census
Posted on August 30, 2011

Pets in Japan

Today’s market size is an estimated size for the pet care sector in Japan. This is a measure of the market for all products and services related to household pets. In Japan, one third of this market is made up of pet food. As in the United States, the pet sector is growing strongly in Japan. However, based on a calculation of population to estimated pet dog and cat numbers, fewer than half as many Japanese households have a dog or cat as a pet as U.S. households.

Geographic reference: Japan
Year: 2009
Market size: ¥1.2 trillion (approximately $12.96 billion based on the exchange rate on December 31, 2009)
Source: “At ¥1.2 Trillion, Pet Sector Recession-Proof,” The Japan Times Online, October 28, 2010, available online here.
Original source: Fuji Keisai Company

Dog and Cat Food

Dog Food

The market for pet care products in the United States is quite large and according to one study, by the firm Packaged Facts, pet food represented only 33.6% of that overall market in 2008, down from 35.1% of the market in 2004. The market sizes presented here are not retail sales figures. They are figures based on the value of manufacturers shipments, thus closer to wholesale prices.

Geographic reference: United States
Year: 2007 and 2008
Market size: $13.5 billion and $15.9 billion respectively
Source: Annual Survey of Manufactures 2008, March 30, 2010, available online here.
Original source: U.S. Bureau of the Census