A new industry report from Nielsen (NYSE: NLSN) and cannabis data provider Headset has highlighted the impact of hemp-based cannabidiol (CBD) on the U.S. pet care market. According to the 2020 Pet Industry Green Paper by Nielsen and Headset, hemp-based CBD pet products will represent 3-5% of all hemp CBD sales within the U.S. by 2025. In fact, joint projections show that the pet sector may yield one of the highest conversion rates within the consumer packaged goods (CPG) industry (37%).
“Understanding the dynamics at play in the cannabis space and their impact on the pet industry is critical,” said Maria Lange, Vice President of Strategic Initiatives at Nielsen. “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.”
The report made the following key points:
- 74% of CBD buyers have pets.
- Pet products have logged over $9.4 million in sales at regulated adult-use cannabis retailers in California, Colorado, Nevada, and Washington combined (Q1 2018 through Q3 2019).
- The average price per pound for CBD dog treats is 2x the average dog treat.
- To date, 24% of pet owners use hemp-CBD either for themselves, their pet(s), or for both.
- Nearly 26% of U.S. adults with dogs are using hemp-CBD products. Half already use hemp-CBD for their dog, while the other half only uses it for themselves.
“The perceived positive effects of cannabis and CBD have created new markets, reinvigorated traditional CPG categories and also fueled legalization efforts. It’s no surprise that cannabis and CBD are becoming a popular way to treat pets naturally, driving another exciting market category for cannabis while energizing the pet industry,” said Cy Scott, Founder and CEO of Headset. “Headset is proud to work with Nielsen on this report to help brands and retailers understand this market and better serve consumers – and their four-legged friends.”