After the widespread legalization of cannabis, the demand for CBD skin care products has been increasing day by day. As per a leading market intelligence and consulting firm, the CBD market size will reach a CAGR (compound annual growth rate) of over 33% by the end of 2027. Also, in 2018, the global CBD skin care market industry generated a revenue of USD 234.1 million, which is, of course, not a small amount.
CBD, also known as cannabidiol, is a naturally occurring compound that is taken from cannabis plants. Also, you can easily find CBD in marijuana plants that are both legal and non-psychoactive to purchase in isolated form.
Nowadays, most individuals are inclined towards personal skin care products that include natural ingredients. CBD products don’t have the side effects caused by synthetic ingredients and are effective for all skin types, whether an individual has sensitive or acne-prone skin. The therapeutic, pain-relieving, anti-anxiety, and relaxing properties of CBD products make them highly addictive, which further accelerates the market growth.
CBD Products Insight
CBD oils have been gaining popularity as they are convenient and have amazing functional attributes such as removing acne scars, being anti-aging, etc. The usage of CBD oils, its creams, hair serums, face masks, and moisturizers is high.
CBD-based creams and moisturizers dominate the global skin care market as they are used by both men and women for skin hydration. These products help individuals to treat skin-related issues such as dark circles, wrinkles, etc. It is estimated that due to the increasing demand for facial mask sheets and serums, the global market will expand at the highest CAGR of 33.7% over the forecast period.
Another reason for high CBD skin care product sales is its specialty stores. Most retailers have started distributing personal care products. US pharmacies stock CBD products. Due to the availability of choices and home delivery, e-commerce portals are highly in demand.
As per research conducted by the American Medical Association in 2017, it was found that around 30 different online retailers purchased more than 80 CBD products. Thus, in the coming years, it is expected that other non-store-based segments will also observe huge improvements in the CAGR, which will ultimately increase the overall CBD skin care market growth.
Source Availability
The easy availability of the product (hemp) is a reason for the growth of the skin care market. All hemp-based skin care products reduce discomfort by rejuvenating and soothing damaged and dry skin. On the basis of its high fatty acid content, CBD hemp-based skin care products owned the largest share of 62.8% in 2018.
Origins’ hemp-based hydrating face mask, Hempme Organic Face Cream, and Kiehl’s cannabis sativa seed oil are some of the hemp-based skin care products that are highly in demand, and will contribute to the global market growth in the coming years.
According to the EU cosmetic ingredient database, hemp seed oil is not only used as a skin conditioner, but also acts as an emollient, surfactant, and cleanser. Due to the minute molecules of hemp, it easily penetrates the skin and provides excellent results. Therefore, by introducing hemp-based skin care products, the CBD skin care market reaches another level of business success.
North America: Maximum Penetration of CBD Skin Care Products
Whether you are an investor or a manufacturer, North America dominates when it comes to CBD skin care services/products. According to FMI’s analysis, it has the largest customer base and plays an essential role in the growth of the market.
There are various countries in which CBD products are made or where marijuana is delivered. But legalization is one of the major drawbacks which affects the growth of the CBD skin care market. But, it is expected that in the coming years, all the countries in which CBD products are illegal will contribute to the significant growth of the global skin care market, such as China, Japan, India, etc.
In the following years, not only will North America increase their share of the CBD skin care market, but Asian countries will expand their business activities in the CBD skin care industry.
Below are some of the prominent companies profiled in the global CBD skin industry that help in increasing business growth:
- Lord Jones
- The CBD Skincare Company
- CBD For Life
- IldiPekar Skin Care & Spa
- Mazz Hanna
- Kana Skincare
- Leef Organics
- Kapu Maku LLC
- Kiehl’s LLC
- Cannuka
- LLC
- Green Growth Brands
- Josie Maran Cosmetics
- Earthly
- Myaderm
- Fab CBD Company, etc.
The CBD skin care market is one of the fast-growing industries, earning $591 million by June 2018. In seeing the advantages of CBD products and business growth, Phoenix Tears has signed an agreement with retail services of the market hub and decided to get CBD products in 4500 different stores by 2018. Now, the company is successful in generating high profits.
Are you planning to start a business in the CBD industry? To gain an in-depth understanding on how to start white label CBD Business, make sure you assess the below mentioned potential risks and challenges of venturing into the CBD skin care industry.
Things to Consider Before Diving into the Hemp Industry
Let’s begin….
- Make sure you consult experts before starting a business, because all skin care products must contain less than 0.3% of THC. If you exceed this digit, then you might have to pay a charge, and there are chances that your business will get shut down or sued.
- Poor extraction of chemical solvents like butane, pesticides, etc. is another possible risk that you must not ignore. These solvents can be dangerous and harmful. So, make sure that you do not ignore these poor extractions.
- It cannot be denied that the CBD industry is reaching great heights. From pharmacies to chain stores, CBD skin care products are the most popular products to be sold. But some manufacturers do not uphold the labels. It becomes challenging to know what exactly the company is selling. Make sure you know what’s in your products.
What are you waiting for? Roll up your sleeves and be part of the competitive landscape of the global CBD skin care market.
