Adroit Market Research - Industry Insights

Owing its origin to various cannabinoids present in hemp, cannabidiol (CBD) witnesses diverse applications inclusive of edibles and cosmetics, besides being used in healthcare products. However, CBD faced stringent application bottlenecks owing to ban on its counterpart, marijuana which is infamous for its high psychotropic e properties leading to substance abuse. On the back of immense industrial potential of cannabidiol (CBD) and the absence of psychotropic properties, CBD has been gaining prominence as a potent industrial component across cosmetics and F&B industry.

Cannabidiol (CBD) is a widely used grooming ingredient and is extensively used across a range of personal car

Owing its origin to various cannabinoids present in hemp, cannabidiol (CBD) witnesses diverse applications inclusive of edibles and cosmetics, besides being used in healthcare products. However, CBD faced stringent application bottlenecks owing to ban on its counterpart, marijuana which is infamous for its high psychotropic e properties leading to substance abuse. On the back of immense industrial potential of cannabidiol (CBD) and the absence of psychotropic properties, CBD has been gaining prominence as a potent industrial component across cosmetics and F&B industry.

Cannabidiol (CBD) is a widely used grooming ingredient and is extensively used across a range of personal care products such as creams, serums, and several oils. Unlike Cannabis indica which has high tetrahydrocannabinol (THC) component, CBD on the contrary remains abundantly present in Cannabis satvia which renders no psychological alterations upon administration, hence its wide spread application in the cosmetic industry.

Recent favorable initiatives augmented by several federal governments, is estimated to thrust novel developments. The recent developments leveraged by the US FDA, triggered by Agriculture Improvement Act, 2018 legalizes hemp production. This further clarifies CBD adoption across various applications favoring rural employment and subsequent development. However, conforming to legal framework regarding cannabis based products continue to be governed under Federal Food, Drug and Cosmetic Act. Thus, cannabidiol is set to witness prominence in the coming years, thereby incurring million dollar growth opportunities in CBD cosmetics market.

CBD oil owing to its high content of omega-3 and gamma-linolenic acid, has emerged as a potential ingredient for cosmetic and personal care products, catering to specific skin conditions such as dry and flaky skin. The CBD oil is a widely acknowledged ingredient for most age reversal products. Advances such as these are poised to manifest insurmountable growth scope in global CBD cosmetics market.

Unilever Takes the CBD Cosmetic Market by Storm with Launch of Novel CBD-based Deodorant

Further, stalwarts in the personal grooming and cosmetic industry are betting big with aggressive refurbishments of their product line and CBD infusion in their cosmetic range. To cite an instance, Unilever has taken the CBD cosmetics market by storm with introduction of its novel CBD based deodorant, under the brand, Schmidt’s Naturals.

On the back of such wide spread acceptance and legality of CBD cosmetics, several industry veterans are investing magnanimously towards profile enhancement with larger product types, as well as geographical expansion to cater to large scale masses across regions. To mention a similar instance, AgraFlora Organics, popularly known as AgraFlora, is a global cannabis company that has partially acquired shares in Eurasia Infused Cosmetics, that will allow the former to get an access to the latter's CBD manufacturing process as well as distribution.

Eurasia already oversees commercial distribution of CBD cosmetics and wellness products across parts of China. Therefore, this recent agreement with Eurasia will favor AgraFlora's expansion aspirations across China, allowing it to commercialize large scale CBD cosmetics. The development is a recent development and is likely to bolster million dollar growth potential in global CBD cosmetics market in the coming years.

Luxury Cosmetic Products Encourage Surged Adoption of CBD, Go Online

Additionally, as cosmetic products are most often OTC products, easy availability and rapid consumption of CBD products are highly imminent, allowing the global CBD cosmetics market to register relentless growth potential.

Premiumization of cosmetic products has remained a persistent trend in the grooming industry and is likely to reciprocate well with CBD cosmetic market at large. The range of CBD based cosmetics is rather long with thorough adoption across bath salts, serums, perfumes and the like. CBD is highly valued for its therapeutic and anti-inflammatory attributes, therefore widely used as an antioxidant. These developments have eased out emergence of superlative cosmetic products.

Premiumization therefore has become the norm and is aiding a wide range of CBD based luxury cosmetics. Additionally with farfetched acceptance of e-commerce as a potential platform for buyers and sellers alike, stakeholders have gradually penetrated into the e-commerce fringe with launch of dedicated CBD based cosmetics. In this line, Europe receives its maiden luxury CBD online site, The Chillery that showcases specialized and crafted CBD cosmetic products to prompt quick access and easy availability. The development is a milestone achievement and is poised to further fuel growth in CBD cosmetics market.

NGO’s Such as ICMAD Vouch for CMD Cosmetics Backed by Topical Application of Most Cosmetic Products

Multifarious organizations are gradually picking up momentum to leverage mass scale CBD cultivation, thereby lending ample growth impetus to the global CBD cosmetics market. In similar lines, ICMAD (Independent Cosmetic Manufacturers and Distributors), a globally renowned NGO, emphasizing the potential of CBD and its applications in grooming products and cosmetics. These organizations coupled with CBD manufacturers are diligently banking upon the Farm Bill, 2018 which has granted measurable leniency towards adoption of CBD in cosmetics. CBD cosmetics are expected to witness far flung acceptance and growth as these cosmetic products are majorly topical and thus chances of psychological alterations are deemed remote. Factors as such are estimated to reflect favorably towards the growth of global CBD cosmetics market.

Mature Economies Likely to Set the Grounds for Prompt Adoption across Emerging Economies

Besides the US legalizing CBD cosmetics, EU has since several years already legalized CBD in cosmetics. According to EU cosmetic regulatory framework, a cosmetic is any material that is a topical product with no implications on the internal organs and functionalities. Therefore, EU legalizes CBD cosmetics derived from cannabis resin, seeds, and leaves. These forward steps undertaken by matured economies are estimated to have remunerative returns for global CBD cosmetics market, and the trend will eventually pick up momentum across emerging economies backed by prompt adoption.

A recent development in Bulgaria further affirm strong market presence of CBD as a mainstream cosmetic product. The Bulgarian Food and Safety Agency in association with Bulgarian Ministry of Agriculture, Food and Forestry have introduced a Free Certificate of Sale for numerous CBD based products. The development is estimated to have an impressive outlook for CBD cosmetics in the coming decades.

The flourishing growth outlook of global cannabidiol (CBD) cosmetics market is likely to remain constant in the coming years with thorough expansion in the cosmetics industry, coupled with Legalization across several countries. The following is a brief overview of market segmentation based on which global CBD cosmetics market is bifurcated into product type, source, and distribution channel.

By Product:

• Moisturizers and Creams
• Masks and Serums
• Cleansers
• Sunscreens
• Other Cosmetic Products

Based on Source, global CBD cosmetics market is diversified into:

By Source:

• Hemp
• Marijuana
• By Distribution Channel:
• Pharmacies
• Hyper and Supermarkets
• Retail Outlets
• Online

Further in the course of the report, readers are equipped with a regional overview.

By Region:

• North America
• Europe
• APAC
• Latin America
• MEA

Takeaways:

• Hemp legalization across matured economies such as the US to boost adoption in CBD cosmetics market
• Men grooming industry to remain a key downstream industry
• Premium CBD luxury cosmetics to witness adoption
• Online sales and e-commerce space to fetch tremendous growth