Pet products report, Q1 2020

 

 

Executive summary

 

  • The following countries are represented in this report: Austria, France, Germany, Greece, Italy, the Netherlands, Switzerland, the UK and the US.
  • Pet products are most widely available in the US; however, during the first quarter of 2020 their presence in European countries started to increase.
  • UK regulations regarding CBD in pet products are strict.
  • Given the increased availability of pet products in the US, it is not surprising to find a wider variety of sub-categories available in that country.
  • Pet standard oils are by far the most prevalent type of product available. Nevertheless, the number of pet edibles and pet topicals introduced during the first quarter of 2020 is considerable.
  • The CBD content may vary depending on the type of product. However, lower concentrations are more widely available.
  • The median price per mg of CBD has fallen in the US, where brands could be trying to be more competitive as more products are introduced. However, in the remaining countries it has increased slightly, probably due to the lower presence of CBD products for pets.

 

Introduction

 

This report focuses on analysis of the CBD pet products category in nine different countries with important CBD markets. The following countries are represented in the study: Austria, France, Germany, Greece, Italy, the Netherlands, Switzerland, the UK and the US.

We address the evolution of the pet products category between the last quarter of 2019 and the first quarter of 2020, and the common characteristics and main differences among these nine countries, including:

  • Product segmentation
  • Availability of products by CBD content
  • Price structure by product sub-category.

 

Pet product category analysis

 

CBD products can be found across a range of different markets, and are now also available for pets. When the category emerged, most of the products being manufactured were for dogs, but in the current market products specially formulated for cats and, to a lesser extent, for horses can also be found.

Pet products started becoming available mainly in the US, but over time have started to gain ground in other countries such as the European ones analysed in this report. As seen in the graphic above, the availability of these products in the market has increased by 16% in a very short time – between the first quarter of 2020 and the last quarter of 2019.

It is important to clarify that certain brands are available in many countries, and we have therefore assumed that they sell all their product offerings in all these countries. CBD-Intel has not taken into into account the possibility that the brands are restricting sales of any of their products in some countries.

That being said, UK regulations are very strict regarding CBD for pets and these products are generally prohibited. This means that some products listed in this report might not be permitted in that country by law.

In all countries, pet standard oils are the most common type of product available. That said, in the US – which is the most developed market for CBD products made for pets – there is a wider offering of product sub-categories. For example, specialist oils are only found in the US, offered by the brand cbdMD.

It is interesting to note that although the topicals category is the second most important on the broader CBD market after the oil category, this is not reflected in topicals made for pets. Only in Germany, Italy and the US can CBD-infused topicals for pets – including shampoos, oils for hot spots (inflamed and painful areas on the animal’s skin), ear cleaners, creams, and more – be found.

Pet edibles are the second most important sub-category made for pets. However, they are not available within the top brands in Switzerland or in Italy.

When analysing the UK – where the CBD pet market is currently banned by law but some foreign brands still have products available, at least online – oral sprays stand out. In this country, oral sprays in the oils category are widely available compared with the other countries, and it seems that the same trend has extended to the pet products category. However, given the strict laws and the small amount of pet products available in the UK, the market is not very significant.

Pet capsules are the third most important sub-category, but these products could not be found in the UK, Switzerland or Italy.

As seen in the graphic above, the category has shown growth, with more products being introduced within most of the sub-categories. That said, there is room for innovation within the pet products category, as it is supported mostly by standard oils.

There are seven brands that started offering standard pet oils during the first quarter of 2020, while three dropped these products – Harmony Hemp, Medterra and Sativap. The last one is known for removing all of its CBD product offerings from the market. The new products added that can be seen in the graphic above are mostly from the seven brands that started offering standard pet oils. The standard oils belonging to the brands that already had products on the market have remained stable.

Even though topicals are only available within the top brands in Italy, Germany and the US, their availability has doubled.

Only four of the seven different sub-categories had activity during the first quarter of 2020.

A few SKUs have been discontinued. These products are mainly related to four brands dropping the category – Carun, Harmony Hemp, Medterra and Sativap.

While the category has been growing across the US and some European countries, the pet market is not as developed as other CBD categories.

Germany is the country with the most products introduced across the different types of pet products. The brands introducing these new SKUs are Cibapet, Hanafsan, Malantis, Nordic Oil and Pura Vida.

Even though the availability of pet topicals has doubled, it seems it is mainly in the US where the category is gaining more attention.

Depending on each market, the type of products available differ. As seen in a previous graphic, in Austria pet capsules are more important than in other countries, and the sub-category continues to develop with more SKUs being introduced.

Even though the sub-categories of pet concentrates, standard oral sprays and pet specialist oils did not have much activity in the first quarter of 2020, it is interesting to analyse where these products are available.

In all of the countries, a few SKUs of pet concentrates can be found within each of the top brands. This is not the case for oral sprays and specialist oils, which can only be found in the UK and the US.

 

CBD content analysis

 

Even though there is a wide variety of CBD content within pet products, the most common total amounts of CBD in a product, sorted from highest to lowest availability, are: 300, 500, 1,500, 150 and 250 mg.

It is interesting to highlight that among the formats with more than 3,000 mg of CBD, products containing 10,000 and 15,000 mg of CBD – which are formulated exclusively for horses – can be found.

Pet edibles in general contain lower concentrations. Within edibles, the most prevalent CBD content is 150 mg of CBD and the highest we found is 800 mg of CBD, which relates to the brand Celtic Wind – which offers a 40 g CBD hemp powder.

Similarly, pet topicals contain low CBD content.

 

Pricing analysis

 

Within the pet category, edibles and topicals are the most expensive types of products.

Overall, prices fell as a few products were introduced at lower prices, while others already on the market had price reductions.

In the case of edibles, most of the added products were treats that were introduced at more competitive prices than the existing products.

The median price per mg of 14 brands decreased, while 13 brands increased. However, the decrease in the median price was more pronounced than the increase.

Depending on the types of products and formats available in each of the countries, prices may vary slightly.

In the US, where more products were being introduced and where brands have more competitive prices in general, the median price per mg of CBD has dropped. In the remaining countries which do not carry many pet products, prices seem to go up due to a wider availability of products.

 

Pet product glossary

 

 Pet products sub-category

Type of products

Pet standard oil Oils for cats, dogs, horses, flavoured oils.
Pet edibles Bites, calming water boosters, chews, dog treats, edible blisters, peanut butter, treats.
Pet capsules Pet capsules.
Pet topicals Anti-parasite lotions, balms, creams, ear cleaners, hot spot oils, moisturisers, shampoo.
Pet concentrates Crystals, pastes, extract syringes for pets.
Pet standard oral spray Pet oral spray.
Pet specialist oil Oil with special ingredients and actives such as melatonin.

– Maria Alejandra Estanga CBD-Intel staff

Photo: Bao_5

CBD-Intel does not provide legal, strategic or investment advice. Tamarind Media Limited, the publisher of CBD-Intel, does not accept any liability or responsibility for information or views published.

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