CBD Skin Care Market

Market Overview

The global CBD skin care market size was valued at USD 1.53 billion in 2022. It is estimated to reach USD 10.22 billion by 2031, growing at a CAGR of 23.5% during the forecast period (2023–2031). The holistic benefits of CBD-infused Skin care items are getting much attention from buyers due to their calming properties and the potential to relieve common skin issues through their anti-inflammatory and antioxidant properties, stimulating market growth.

CBD skin care refers to skincare products incorporating cannabidiol (CBD) as a key ingredient. A naturally occurring substance obtained from the cannabis plant is called CBD. CBD, in contrast to THC, is renowned for its potential medicinal advantages but does not result in any psychoactive effects. CBD has gained significant popularity in the skincare industry in recent years due to its potential positive effects on the skin. CBD-infused skincare products come in various forms, such as creams, lotions, serums, oils, and balms, designed to be applied topically to the skin. These products are formulated to harness CBD's potential properties to improve the skin's overall health and appearance.

One of the key benefits of CBD in skincare is its potential anti-inflammatory properties. CBD has shown promise in reducing inflammation, benefiting those with skin conditions such as acne, eczema, and psoriasis. CBD may help calm and soothe irritated skin by reducing inflammation, promoting a healthier complexion. Additionally, CBD is known for its antioxidant effects. Antioxidants help protect the skin from free radicals and environmental damage, which can contribute to premature aging and dullness. CBD's antioxidant properties can help combat oxidative stress and promote a more youthful and radiant complexion.

Market Dynamics

Global CBD Skin Care Market Drivers

Incredible Skin Healing Potential

The holistic benefits of CBD-infused Skin care items are getting much attention after the legalization of marijuana and cannabis-based cosmetics. These goods are getting increasingly popular with buyers due to their calming properties. CBD has the potential to provide relief for common skin issues through its anti-inflammatory and antioxidant properties. CBD-based skin care products also offer various benefits, such as improved sleep and treatment of various skin conditions, like eczema, psoriasis, and acne.

Cosmetic companies have capitalized on these unique benefits associated with CBD-based skin care products. These companies promote these products as “natural cosmetics” in the market. In addition, sleep specialists widely use CBD as an active aromatherapy ingredient, as its calming properties are responsible for improved sleep among patients suffering from obstructive sleep apnea (OSA). The multi-functional attributes of these products are expected to propel the demand for CBD skin care products in the future.

Rise in Preference Toward Sustainable Skin Care Products

Major personal care brands are progressively using essential oils in their products. Innovations and new formulations in the personal care industry are primarily driven by consumer willingness to pay more for natural skincare products. Consumers have gradually become aware of and seek skincare products manufactured without harmful and toxic ingredients. In addition, sustainable products are gaining traction among consumers who want to know the source of their personal care products. In developed economies with high disposable income, such as Europe, there is a high demand for personal care products manufactured using natural ingredients.

Furthermore, consumers' perception is rising that natural ingredients are better and safer than synthetic alternatives in skincare products. The positioning of CBD-infused skin care products as "natural cosmetics" is anticipated to ultimately increase their consumption among consumers, thereby boosting the revenue growth of the overall CBD skin care market during the forecast period.

Global CBD Skin Care Market Restraints

High Probability of Product Contamination

CBD-based skin care products are labeled as “all-natural” products, and manufacturers often require close attention while removing conventional preservatives from product formulations. Such removal of preservatives from products increases the risk of bacterial contamination, a major cause of personal care product recalls. In addition, manufacturers must eliminate traditional cleaning and sanitizing products with more suitable replacements focusing on maintaining the cannabis plants. This increases the overall cost of plant maintenance. The above challenges in manufacturing CBD-based skin care products are eliminated by establishing separate product facilities.

However, establishing separate production facilities increases the overall cost of goods and is expected to hamper the revenue growth of the global CBD skin care market during the forecast period.

Global CBD Skin Care Market Opportunities

Growth in Revenue Through Online Sales Channels

Awareness regarding the health benefits of CBD-infused skin care products has gained rapid recognition among consumers worldwide. However, production and availability of these products are limited to certain countries. However, the growth of internet penetration and easy accessibility offered by online platforms is expected to contribute to the availability of these products worldwide. Therefore, introducing and selling CBD skin care products through online channels are further anticipated to enable manufacturers to expand their market base and help grow their revenue in the global CBD skin care market.

Regional Analysis

Based on region, the global CBD skin care market share is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global CBD skincare market shareholder and is estimated to grow at a CAGR of 22.9% over the forecast period. The study for North America in the report is primarily focused on the U.S., Canada, and Mexico, as these are the major countries that contribute to the economy of North America. After the passing of the U.S. 2018 Farm Bill, cultivation, manufacturing, and distribution of hemp and hemp products has been legal in the U.S. This has driven the market in the last year very positively. With the increase in the production of cannabis and its use, top key players are also extensively using cannabis in skincare products, potentially driving the CBD skin care market growth.

Additionally, the region's strong research and development capabilities and proactive approach toward product innovation contribute to market growth. Companies in North America are investing in research to explore the full potential of CBD in skincare and develop innovative formulations to address specific skin concerns. This continuous product development and innovation contribute to the market's expansion and consumer adoption of CBD skincare products.

Europe is anticipated to exhibit a CAGR of 24.8% over the forecast period. In the report, Europe for the global CBD skin care market primarily focuses on the UK, Germany, France, Italy, and Spain. These countries are the developed countries in the region and have some of the highest GDPs in the world, strengthening the European economy. The rise in the number of countries legalizing cannabis cultivation and farming is helping the CBD skin care market to grow in the region. Europe is anticipated to have a very high growth potential in the coming years with the legalization of cannabis. Apart from the legalization of cannabis, awareness among customers about the health benefits of CBD products and the availability of these products in all distribution channels make Europe one of the fastest-growing markets for CBD skincare products.

Asia-Pacific is one of the untapped CBD markets and represents enormous market opportunities to benefit from the global legalization trend of cannabis. For instance, in 2018, Thailand announced it would be the first country in Asia to legalize the production and cultivation of marijuana crops. This recent legalization in Thailand came after South Korea legalized medical marijuana in November 2018. The growing interest by countries toward making marijuana legal in the market provides numerous opportunities for CBD skincare products to grow in Asia-Pacific.

In LAMEA, most of the countries in Latin America are legalizing cannabis. For instance, Uruguay legalized cannabis in 2013, which sparked a major market opportunity for the cannabis market across Latin America. After Uruguay, other countries such as Mexico, Colombia, Argentina, Peru, Paraguay, and Chile introduced special regulations and legalized cannabis for medical and skincare products. Latin America has a total population of around 620 million people, which makes it an emerging platform for global expansion by foreign investors.

Segmental Analysis

The global CBD skincare market share is bifurcated into product type, source, and distribution channels.

Based on product type, the global CBD skincare market is bifurcated into oils, lotions and creams, masks and serums, baths and soaps, and others

The oils segment dominates the global market and is projected to exhibit a CAGR of 23% over the forecast period. Natural oils, like coconut, shea butter, and olive oil, have been used to care for skin and hair for hundreds of years. In recent years, essential oils made by cannabis have become a trend in the skincare oil segment. CBD oil in skin care products benefits many applications, from acne to wrinkles. It is a nonintoxicating component of marijuana or hemp plants. CBD is taken out as a powder and is often mixed with oils like olive, hemp, or coconut, which enhances its application and effectiveness. This oil has anti-inflammatory benefits, which make it a suitable ingredient for acne-prone skin, while its calming benefits help the skin feel better. These benefits of CBD oils make it a desirable product for skin care, creating opportunities for its growth throughout the globe.

Based on the source, the global market is bifurcated into hemp and marijuana.

The hemp segment dominates the global market and is projected to exhibit a CAGR of 6.07% over the forecast period. Hemp is a non-psychoactive form of cannabis cultivated for agricultural and industrial use. It has long stems, narrow leaves, and only trace amounts of the psychoactive compound THC, i.e., around 0.3% or less. This form of cannabis is known for its rich Cannabidiol and low Tetrahydrocannabinol (THC) content. The cultivation, manufacturing, and distribution of hemp and hemp products have been legalized in the U.S. after the hemp cultivation bill was passed in 2018. Since then, the market players have extensively used Hemp in manufacturing skincare products, owing to its health benefits. Hemp oil is extracted from hemp seeds with various healthy properties, such as essential vitamins, minerals, flavonoids, and fatty acids. Owing to Hemp's high number of health benefits, its use in skincare products has been rising for the last few years and is expected to rise constantly during the forecast period.

Based on the distribution channels, the global market is bifurcated into departmental stores, e-commerce, hypermarkets/supermarkets, retail pharmacies, and others.

The departmental store segment dominates the global market and is projected to exhibit a CAGR of 22.9% over the forecast period. A departmental store offers various consumer goods in different product categories. Departmental stores often include clothing, furniture, home appliances, toys, cosmetics, houseware, gardening, toiletries, sporting goods, paint, and hardware. In addition, other lines of products, such as food, books, jewelry, electronics, and stationery, are also included at times. The growth of CBD skincare products through departmental stores is positively affected by modern civilization and higher living standards. Departmental stores are not only limited to small shops in modern civilization but are also popular in rural areas. These stores provide various products regularly required by customers in rural and urban areas. Hence, customers prefer departmental stores for easy one-stop shopping. Market players make CBD skin care products available in small departmental shops, attracting many customers through departmental stores.

Recent Developments

• June 2023- The Body Shop launched its new CBD-infused skincare line. The new line includes face creams, body lotions, and lip balms.

• May 2023- Sephora announced it would carry a wider selection of CBD-infused skincare products. This is a major move for Sephora, as it is one of the largest beauty retailers in the world.