POINT ROBERTS, Wash. and DELTA, British Columbia, Jan. 22, 2019 (GLOBE NEWSWIRE) -- Investorideas.com, a leading investor news resource covering hemp and cannabis stocks, releases part one of a two-part series looking at the future of the CBD Pet Market and the companies looking to take a bite out of the growing global pet industry.
The US pet industry expenditures are estimated at USD 72.13 billion for 2018 according to the American Pet Products Association and the global pet care market is expected to reach USD 202.6 billion by 2025. Combine that with New Frontier Data reporting, “Pet-and-animal product sales are estimated to reach USD 125 million by 2022, representing a 5-year CAGR of 57%, among the fastest-growing sectors in the CBD market,” and it’s easy to see why cannabis companies are pouncing on the opportunity.
Seeing the way of the future, in August 2018 Canopy Animal Health, a division of Canopy Growth Corporation (TSX:WEED.TO) (NYSE:CGC) that focuses on healthcare products for companion animals, received approval from the Veterinary Drug Directorate to research the possible therapeutic effects of cannabidiol on anxiety.
Canopy Animal Health notes on its website, “While the existence of cannabinoids has been known for centuries, the concept of using naturally occurring cannabinoids as therapeutics for companion animals is a new forefront of medical discovery.”
Now a growing number of CBD manufacturers are beginning to take notice and develop their own lines of pet products, especially after the reclassification of CBD in the US.
SingleSeed.com, a subsidiary of SinglePoint (OTCQB: SING), a company with a history in the cannabis market recently launched PHYTO-BITES on SingleSeed.com. The company’s subsidiary SingleSeed.com has added a new vertical, serving pet owners with a brand-new offering that is formulated to reduce stress, pain, separation anxiety and inflammation. PHYTO-BITES is manufactured and supplied by CBD Unlimited, formerly Endexx. The two companies are working collaboratively to distribute this product online and in stores all over the nation.
GrandView Research, looking at the global pet care market notes that based on type, dogs held the largest market share. SinglePoint (OTCQB: SING) strategically plans to make PHYTO-BITES one of its premier offerings because of the size of the market and the market penetration potential.
Looking at entering the pet market as part of the company’s overall growth strategy in the cannabis sector, Greg Lambrecht, CEO of SinglePoint said, “We are very excited to add this to our list of products. The pet market is a tremendous opportunity and we plan to attend and use all our contacts to promote this product at every opportunity we are presented with.”
Also going after the dog market, Charlotte's Web Holdings, Inc., (CSE:CWEB) (OTC: CWBHF) describes their pet product line saying, ”Our high quality hemp extract with easily digestible and healthy MCT oil helps dogs to maintain a sense of calm plus support for their active hips and joints. Contains 16.5mg of CBD per mL.”
Charlotte's Web full product line includes CBD Oil tinctures, CBD capsules, CBD topicals, as well as CBD pet products, which will require a large quantity of consistent hemp product available as these markets take off.
From dogs to wolves…In April 2018, CannTrust Holdings Inc. (TSX:TRST.TO), one of Canada’s leading licensed producers of medical cannabis, announced that it entered into a letter of intent with Grey Wolf Animal Health Inc. to develop groundbreaking cannabis products to support the well-being of pets.
Grey Wolf Animal Health Inc. announced that it has acquired Veterinary Healthcare Solutions Inc. to accelerate the growth of Grey Wolf’s business and complements its existing portfolio of specialty animal health products for the veterinary channel. The transaction is immediately accretive to both revenue and EBITDA and provides Grey Wolf with a portfolio of commercial products and a national sales force platform to support its pipeline of current and future products. Financial terms of the deal were not disclosed.
As CBD products for pets become more available and pet owners become more accepting of the benefits, investors can expect this to become a more competitive landscape. This may lead to a parallel path of the CBD beverage industry with big-name brands partnering and seeking acquisitions.
Continued in Part 2; Investorideas.com will explore some of the other companies looking to get their teeth into this sector and what’s driving this market.