Answer:
A necessity to some, a treasure to many, I'm best enjoyed among pleasant company. Some like me hot, some like me cold. Some prefer mild, some like me bold. What am I?
My keepers feed me colored balls. With sticks they store on my den walls. Sometimes I store them in my pouch. Sometimes deep in my belly; ouch!
Face with a tree skin like the sea. A great beast I am. Yet vermin frightens me.
I shrink smaller every time I take a bath.
I am a type of animal that hang out in the mist
Give it food and it will live, give it water and it will die.