Man's best friend might be a cannabis investor's best friend, too, as pot-related products for your pooch could soon become a major revenue source for legal-weed companies like Tilray (TLRY) and Canopy Growth Corp. (CGC) .
"In the last three years we've seen a huge explosion in the cannabis industry for pets. Consumers are captivated by this," said Ian Quinn, CEO of Phyto Animal Health, a company that develops hemp-based CBD oil supplements for pets.
Clinical studies have find that cannabidiol, or "CBD" -- a non-psychoactive substance in pot -- could have positive medicinal effects ranging from pain relief to opioid-replacement therapy. That could make pot-related products popular not only with humans, but with the $72 billion-a-year pet-products industry.
For example, Quinn expects pet owners looking for effective palliative care for their aging animals to line up to buy such products. "Older pets with bad hips and knees or even if they're just anxious -- CBD is a real relief," he said. "Also, a lot of people report extension of life in their pets."
The expert speculated that if we see full U.S. federal legalization of pot, cannabis-related products for pets could eventually become a $55 billion-a-year industry. Cannabis companies that can supply pot to veterinary-products companies would be sure to benefit.
Bob Vetere, president of the American Pet Products Association, told Real Money recently that he's already seen the number of cannabis-related suppliers at trade shows. "The last couple of years we've been noticing more and more CBD/hemp manufacturers exhibit at our show," he said.