Are you thinking of joining the growing number of merchants adding hemp and CBD pet products to their human Cannabis-Related Businesses? Perhaps you’re thinking of launching a company focused on pet supplements, including a line of CBD and hemp products? Congratulations! You are part of a rapidly emerging enlightened group of retailers and consumers discovering the health and wellness benefits of CBD and Hemp infused supplements, treats, chews, and oils for pets. The financial opportunities are considerable. According to the CBD Pet Market Size, Share & Trends Analysis Report¹, prepared by Grand View Research, the CBD pet industry was worth 37.4 million in 2020 and is projected to grow at a rate of 40.3% to 399.2 million in 2027.
Based on this forecast, now is the right time to enter the market. Thanks to the Agricultural Improvement Act passed in December 2018, hemp production in the U.S. is now legal, creating opportunities for growth in both human and pet markets. As the humanization of pets continues to dominate the pet products industry, it is natural that people who use products with hemp and CBD ingredients also desire to share the benefits with their pets.
Packaged Facts, a leading publisher of market research in the food, beverage, consumer packaged goods, and demographic sectors, released the 8th edition of its Pet Supplements in the U.S. report². The report found that 21% of dog owners and 10% of cat owners purchased CBD supplements in 2020. And that number is expected to rise dramatically. According to Grand View Research, key factors predicted to continue influencing CBD pet market growth include increasing pet adoptions, growing awareness of cannabis benefits among pet owners, and pet owners’ preference for natural pet supplements.
If you are new to the pet hemp and CBD industry, there are two grades of products available for retail sales subject to different scrutiny levels. Be sure the manufacturer clarifies which grade of products they offer and that any claims about products are substantiated through factual analysis.
- Therapeutic Grade products are classified as Pet Supplements and Pet CBD oil. They have been certified to provide therapeutic relief for joint pain, epilepsy, and other medical conditions.
- Food Grade products are classified as Treats, Chews, and other edible products. Food Grade efficacy is based on ingredients known to provide certain results, not on certification.
Just as retailers are reacting positively to offering products made with hemp and CBD to pet’s human parents, so are manufacturers by offering a wide variety of products available for retailers to stock their shelves or sell online.
- Tinctures, oils, and topical ointments;
- Chews such as HempMyPet for arthritis and joint pain;
- Fomo Bone for anxiety;
- Canna-Pet for seizures and convulsions;
- Treats and chews that promote a sense of calm and well-being like Honest Paws, which are now being fed as rewards in place of ordinary treats.
In fact, the pet hemp and CBD industry is growing so fast, it has attracted some of the biggest names in the pet industry. Pet food companies such as Nestle Purina and Mars are developing strategies for new product launches, acquisitions, and collaborations to increase their market penetration. Even Martha Stewart is getting onboard. In January 2021, Martha Stewart, in partnership with Canopy Growth, launched her CBD-infused dog treats product line.
In addition to the big box wholesalers mentioned above, the following companies both sell their products online and offer them wholesale to retailers:
- Canna-Pet – Hemp nutrition for dogs and cats
- Pet Releaf – CBD oil edibles
- HolistaPet – CBD oil and chews for dogs and cats
- Joy Organics – USDA Certified organic full & broad-spectrum CBD tinctures
- CBD Living – Hemp CBD capsules, tinctures, and edibles for dogs and cats
Retailers that market hemp and CBD products to pet owners should be prepared for an increase in sales. In fact, you may be attracting customers to your CBD business that never used CBD or hemp themselves but want natural relief for their pets.
Whether you are opening a new business or have an existing business that plans to start selling hemp and CBD pet products, you must lay the foundation for success. Part of that foundation is ensuring you have a dependable payment solution that allows the sale of hemp and CBD products. Despite their popularity, hemp and CBD products are highly regulated, and not all payment processors will accept vendors that sell such products. If you have an existing merchant processing account that was set up prior to offering hemp and CBD products, you must check with them to ensure they allow sales of these types of products. The last thing you want to happen is to have your payment processing account frozen, suspended, or closed because you violated your agreement with your processor. Whether you’re an existing business or launching a new company, the ability to accept credit and debit cards is one key to success that you must not want to overlook.
You may have been surprised to learn that many of the well-known merchant processing companies such as Square, Stripe, and PayPal do not permit the sale of hemp and CBD products. While many payment processing options available to standard retailers will not accept vendors who sell hemp and CBD products, some merchant processors specialize in the industry. One example of a merchant processor that specialized in CBD and hemp products is Unity Payments. They offer competitive advantages including:
- NO contracts
- NO cancellation fees
- Locked-in service rates
- 24/7 tech support
- Loss prevention specialists
To secure a reliable, high-risk merchant processor, or to change from your current merchant processor, consider Unity Payments, a subsidiary of Nuvo Company, an established leader with over 35 years of experience serving various businesses. Contact Unity Payments today for more information or a free audit of your existing processor.
¹ Grand View Research – CBD Pet Market Size, Share, & Trends Analysis Report
² PackagedFact – Pet Supplements in the U.S., 8th Edition