NEW YORK — The Nielsen Group and Headset teamed up to release the 2020 Pet Industry Green Paper, a resource on hemp-based cannabidiol (CBD) products in the pet product market, on Feb. 4. The report indicates these pet products will make up 3 to 5% of all CBD sales in the US by 2025.
“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, Nielsen. “Despite open questions around regulations, hemp-CBD is exploding in the pet space.”
According to the report, more than $9.4 million in pet products were sold at regulated adult-use cannabis retailers throughout California, Colorado, Nevada and Washington combined between the first quarter 2018 and the third quarter 2019.
Approximately 74% of consumers who purchase CBD products own pets, and 24% of pet owners use hemp or CBD for themselves, their pet or both. Among dog owners, about 26% are using CBD products, of which half are already administering it to their dogs, while the other half is using it for themselves only.
The companies’ projections show that hemp-CBD sales in the pet space could yield one of the highest conversion rates across the entire consumer packaged goods (CPG) industry, which is estimated to be 37% by 2025.
Nielsen and Headset estimate the average CBD-infused dog treat costs two times as much as a regular dog treat, totaling an average of $28.63 per package. CBD tinctures and powders for dogs tend to cost more on average, at about $62.94 and $77.24 respectively.
For cats, CBD tinctures are generally the most expensive at $39.99 on average; powders come in second at around $33.98; and treats tend to be cheapest at about $20.38 per package. Overall, CBD pet tinctures cost $62.17 on average, powders cost $58.72 and treats cost $27.99, according to the report.
The Pet Industry Green Paper from Nielsen and Headset , is intended to provide 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.
Headset is a leading research and data analysis platform for the cannabis industry, focusing on CPG trends, demographics and other resources that help business navigate this emerging, potentially lucrative market.
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