Consumer awareness of the therapeutic benefits of cannabidiol (CBD) is creating new markets in the global wellness sector, including hemp-based CBD pet care products.

With a THC content of less than 0.3 percent, hemp-based CBD products will not result in the signature high sought out by recreational cannabis users. As the global cannabis industry continues to develop, however, CBD-based products have the potential to represent a significant share of the market. Without THC, the hemp-based CBD market has shaken off the stigma associated with cannabis and become one of the leading consumer product markets. According to data from the Brightfield Group, the global hemp-derived CBD market was valued at US$591 million in 2018 and has the potential to reach US$22 billion in 2022.

The popularity of hemp-derived CBD products is a direct reflection of the growing global trend towards more plant-based health and wellness products. In 2018, the Global Wellness Institute estimated that the global wellness economy was a US$4.2 trillion market, growing 12.8 percent from 2015 to 2017. CBD-infused pet care products represent a new wave of this growing trend.

 

What you need to know about Tesla's Battery Day

   
Expert Analysis of Tesla's Battery Day and the impact on Battery Metals Investing.

In the US, major retailers such as Walgreens (NASDAQ:WBA) and Kroger (NYSE:KR) are beginning to stock their shelves with hemp-based CBD wellness products following the December 2018 passage of the US Farm Bill, which effectively made hemp an agricultural product. To the north, Health Canada is considering categorizing CBD as an over the counter natural health product that could be sold in retail locations such as pharmacies, health-food stores and pet stores.

Martha Stewart’s partnership with Canopy Growth (NYSE:CGC,TSX:WEED) is one of the clearest signals that hemp-derived CBD is going mainstream. With Health Canada approval, Canopy is conducting several clinical trials into the efficacy of CBD in improving human and animal health. The new product line to be designed with Martha Stewart is expected to include cosmetics, food products and pet care. “I’m especially looking forward to our first collaboration together, which will offer sensible products for people’s beloved pets,” said Stewart in a press release.

Pet care market growth

The pet care industry as a whole has shown impressive growth in recent years, with demand for premium care products as one of the main drivers. According to Grand View Research, the global pet care market was valued at US$131.7 billion in 2016 and is forecast to grow by a compound annual growth rate (CAGR) of nearly 5 percent to reach US$202.6 billion by 2025. The United States is the largest geographic segment for pet care. The American Pet Products Association reports that US consumers spent US$72.5 billion on their pets in 2018 and that figure is expected to reach US$75 billion in 2019.

Today’s pet owners are looking to treat their fur babies to the same health benefits of CBD that they themselves enjoy. Just like for humans, CBD in pet care is used to treat anxiety, pain, digestive disorders, skin conditions, sleep issues and the ailments of aging. Torn ligaments, sprains, arthritis, separation anxiety and travel stress are all common conditions for pets that can be treated with hemp-derived CBD products. According to New Frontier Data, products targeting anxiety and inflammation are the top-selling segments in CBD pet care.

CBD treats, snacks and supplements for animals are not yet approved by Health Canada; however, the US Food and Drug Administration has placed no restrictions on CBD pet care products. According to BDS Analytics, sales of pet products at dispensaries in California, Colorado, Oregon and Washington brought in nearly US$7 million in 2017. In Colorado alone, CBD pet product sales grew 49 percent in 2017, compared to other product categories which only reached 15 percent growth. A similar story can be seen in a recent report by New Frontier Data, which predicts that CBD-infused pet product sales in the US will reach US$125 million by 2022, representing a five year CAGR of 57 percent.

CBD pet products

Now that the US Farm Bill has made hemp-derived CBD federally legal in the United States and Health Canada is considering categorizing CBD as a natural health product, researchers are expected to be able to conduct further studies into the therapeutic benefits of CBD in pet care. The potential to expand product lines is leading hemp- and CBD-based consumer product companies to build out their portfolios with established pet care brands that can easily be infused with CBD. Those companies with existing distribution channels could have an advantage in the space when battling for retail distribution.

 

What you need to know about Tesla's Battery Day

   
Expert Analysis of Tesla's Battery Day and the impact on Battery Metals Investing.

“We are very excited about the potential of our pet food and pet health brands. The global market for these products is tremendous, and we look to dominate the categories where we do business. Our focus on research and innovation will help build trust with customers as the pet CBD market matures,” Andreas Thatcher, CEO of Geyser Brands (TSXV:GYSR), told the Investing News Network (INN).

Geyser Brands’ acquisition of Solace Management Group comes with a proprietary IP portfolio that includes product lines such as the well-established Apawthecary Pets and the newly launched WildTail Pets. Apawthecary Pets is Canada’s leading hemp-based pet brand and is currently distributed through 40 veterinarian clinics and 300 stores in Canada including Bosley’s, Petland, Pharmasave, Shoppers Drug Mart and Pet Valu. WildTail Pets is the first brand to infuse hemp into freeze-dried pet food and is expected to be launched in Japan, the US, the UK and Canada with distribution contracts set to be announced in Q3 2019. These product lines are hemp-based formulations that Geyser plans to infuse with CBD as a value-added therapeutic ingredient for sale in legal jurisdictions.

Companies developing CBD pet products

Across the North American cannabis industry, major players are beginning to position themselves in the CBD market. Next Green Wave Holdings (CSE:NGW,OTCQX:NXGWF) recently added its first CBD pet product to its premium portfolio of brands in California. Infused with full-spectrum CBD and quality oil extracted from US grown hemp, the company’s Loki Love Biscuits are now a revenue-generating product sold online in the United States.

Vertically integrated Canadian cannabis producer Pure Global Cannabis (TSXV:PURE,OTC Pink:PRCNF,FRA:1QS) is looking to strengthen its position in the global CBD wellness and pet care market through the acquisition of Ottawa-based The Great Canadian Hemp Company. The hemp-based products, to be infused with CBD, are expected to launch in Canadian, European, US and Asian markets in 2020 to 2021.

Naturally Splendid Enterprises (TSXV:NSP,OTCQB:NSPDF,FRA:50N) has built a portfolio of hemp, CBD and plant-based products, including the award-winning Pawsitive FX pet care line. The company has an established retail presence in over 2,000 stores in North America and exports retail products, bulk and plant-based ingredients to Australia, Asia and Europe. Naturally Splendid intends to pursue opportunities for CBD-fortified topicals and edibles for pets in legal markets.

Takeaway

The CBD pet care market is considered one of the fastest-growing segments of the booming CBD health and wellness market. As more consumers become aware of CBD pet care products and their benefits, companies are already beginning to battle for position in the marketplace. Companies with established brands and existing distribution channels are expected to be well-positioned to capitalize on these trends moving forward.


This INNSpired article was written according to INN editorial standards to educate investors.

Trulieve to donate $20,000 in scholarship funding and $15,000 to support leadership development

Trulieve Cannabis Corp . (CSE: TRUL) (OTC: TCNNF), a leading and top-performing cannabis company in the United States today announced a new partnership with the Thurgood Marshall College Fund (TMCF), the nation’s largest organization exclusively representing the Black College Community. Trulieve will donate $20,000 to help fund several college scholarships awarded to students who are attending one of the organization’s member-schools as part of Trulieve’s diversity, equity, and inclusion initiatives. The $15,000 in talent funding is earmarked to support TMCF’s internship program, reaching a diverse talent pool of students and alumni from their 47 member-schools to provide immersive experiences at Trulieve.

Keep reading... Show less

The new dispensary expands patient access to Florida’s largest inventory of medical cannabis products

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today the opening of a brand-new Florida dispensary, the Company’s 80th nationwide. The new location marks the Company’s first in Tamarac and third in Broward County expanding patient access to Florida’s largest and broadest assortment of high-quality medical cannabis products.

Keep reading... Show less

Revive Therapeutics Ltd. (“Revive” or the “Company”) (CSE: RVV, USA: RVVTF), a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders, is pleased to announce an update on the Company’s U.S. Food & Drug Administration (“FDA”) Phase 3 clinical trial (the “Study”) to evaluate the safety and efficacy of Bucillamine in patients with mild to moderate COVID-19.

With its recent $23 million dollar financing, the Company plans to aggressively expand from 14 clinical sites to up to 50 clinical sites to meet the next enrollment goals for the Study in Q2-2020. The Study is a randomized, double-blinded, placebo-controlled trial and the safety and efficacy data analyzed at each interim analysis timepoint of 210, 400, 600 and 800 completed patients are only made available to the Independent Data and Safety Monitoring Board (“DSMB”) for review and recommendations on continuation, stopping or changes to the conduct of the Study. In the event of any serious safety concerns, the DSMB would be notified to determine any risks and provide its recommendations. To date, in this initial 210 interim point there have been no serious safety concerns that required the DSMB to be notified.

Keep reading... Show less

HempFusion Wellness Inc. (TSX:CBD.U) (OTCQX:CBDHF) (FWB:8OO) (“HempFusion” or the “Company”), a leading health and wellness CBD company utilizing the power of whole-food hemp nutrition, is pleased to announce that its common shares have been approved for DTC full-service eligibility in the United States by the Depository Trust Company (“DTC”) and can now be both traded and serviced through DTC’s electronic book-entry system.

DTC is a subsidiary of the Depository Trust & Clearing Corp. (“DTCC”) that provides clearing and settlement services for the financial markets and settles the majority of securities transactions in the United States. This electronic method of clearing securities speeds up the receipt of stock and cash and thus accelerates the settlement process for investors and brokers, enabling the stock to be traded over a much wider selection of brokerage firms.

Keep reading... Show less

CFN Enterprises Inc. (OTCQB: CNFN) (CFN Media) partners with FMW Media Works LLC to produce a regular series on the global cannabis markets to air on major financial news networks across the US. Initial segment features leading cannabis analyst and US Multi-State Operator (MSO)

CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the leading media network dedicated to the global legal cannabis, CBD and psychedelics industries, today announced that its inaugural news segment on the cannabis markets, “Cannabis Market Outlook for 2021,” will air on Bloomberg, Newsmax and Fox Business.

Keep reading... Show less