CBD Skin Care Products Market

Market Overview

The global CBD skin care products market size was valued at USD 422.5 million in 2019 and is expected to grow at a CAGR of 32.4% during the forecast period, (2020–2029). Factors such as effectiveness of these products in skin related disorders and paradigm shift toward CBD Skin Care Products, significantly drives the CBD skin care products market demand by 2030

Cannabidiol (CBD) is a non-alcoholic extract obtained from the hemp plant, which is recognized as an agricultural crop. The hemp plant possesses characteristics plant similar to the marijuana plant and both the plants are a part of cannabis. On July 25, 2019, the U.S. FDA announced the official clearance for the hemp plant and its utility in products.

Cannabidiol is a compound found in the hemp plant, which is utilized for its therapeutic properties in humans. The demand for cannabidiol (CBD) for medical and wellness purposes is high, owing to its healing properties. It is used to treat a variety of ailments, such as stress, chronic pain, nausea, neurological seizures, and others.

CBD skin care products are used for the treatment of several skin conditions such as eczema and psoriasis and offer a plethora of other benefits, which drives the global CBD skin care products market growth. Manufacturers have identified the unique features of these products and are promoting CBD infused skin care products as natural cosmetics in the global market.

Market Dynamics

The Top Two Factors Shaping the CBD Skincare Market

Effectiveness of CBD Skincare Products in Skin Related Disorders

CBD skin care products are considered safe and effective for all skin-associated diseases. They help relieve inflammatory conditions, sensitivity, acne, and dryness related to skin. CBD skin care products' strong anti-inflammatory properties act as a media for the natural healing process, reducing breakouts and eczema flare-ups. In addition, CBD showcases anti-oxidant properties that help counter-attack signs of aging. CBD also helps reduce pain associated with skin inflammation.

The healing properties of CBD skin care products are prompting the introduction of new products in the market, and leading market players are collaborating to launch or introduce new products. For instance, on January 10, 2020, Sephora announced its biggest CBD beauty partnership with the start-up Saint Jane. Some luxury retailers are focusing on introducing CBD infused product lines, such as Murad's Hemp Serum by Unilever, Origins Hemp Mask by Estee Lauder Companies, and Kiel's Cannabis Serum by L'Oreal.

Paradigm Shift toward CBD Skin Care Products

Currently, the personal care industry is observing a paradigm shift toward CBD skin care products. As per the California-based Hemp Industries Association (HIA), in 2015, USD 147 million worth of hemp-based personal skin care products were sold in the U.S. market. It is estimated that a majority of these personal care products were imported from the neighboring country Canada.

Stakeholders are creating a separate product line for CBD infused personal care products comprising hand care, skin care, and lip moisturizing products. Manufacturers are primarily marketing these products through the health benefits of CBD in skin care. Innovative techniques of manufacturing CBD skin care products, coupled with effective distribution strategies, will propel the CBD skin care products market growth during the forecast period.

Stringent Regulations Associated with CBD Skin Care Products: A Key Restraint Hindering Market Growth

Currently, CBD skin care products are strongly regulated by authorities on account of their Tetrahydrocannabinol (THC) content. CBD is obtained from the hemp plant, which consists of 0.3% THC (a psychoactive ingredient). If the CBD's THC content is more than 0.3%, it is classified as marijuana.

Several countries, such as Australia, Germany, and France, have strict impositions or guidelines on the use of CBD in the personal care industry, which limits the sales of CBD personal care products in these countries. On May 15, 2018, the Therapeutics Goods Administration (TGA) claimed hemp and CBD oils were misleading consumers, estimating that companies in the U.S. are illegally exporting CBD oils. These products are not registered under the FDA and, therefore, unlikely to receive register by TGA.

Regulatory impositions from government authorities impede the growth of CBD skin care products in developed regions. The wellness hemp and medical cannabis industry is under constant pressure from regulatory bodies despite the associated benefits of the products. The stringent regulatory scenario is expected to restrict the growth of the CBD skin care products market during the forecast period.

Regional Analysis

On the basis of geography, the CBD skin care products market share is bifurcated into four key regions, namely North America, Europe, Asia-Pacific, and South America.

North America Dominates the Global Market

North America dominated the global market, with a 40.2% value share in 2019. The region is expected to remain the largest value shareholder throughout the forecast period. The demand for CBD skin care products in North America is envisaged to remain due to the presence of a large customer base and legalization of marijuana in the U.S. and Canada. Currently, about 33 states in the U.S. and the District of Columbia have legalized.

Favorable legalization policies and the presence of prominent beauty care manufacturers will create lucrative opportunities for the regional market in the near future. Currently, cannabidiol (CBD) is more prominent among individuals as it offers remarkable therapeutic effects. CBD is legally available within the U.S. as it contains 0.3% or less tetrahydrocannabinol (THC), making it accessible for consumers. To date, the FDA has approved one cannabis-derived drug product, Epidiolex (Cannabidiol) and three synthetic cannabis-related drugs, Marinol (dronabinol), Syndros (dronabinol), and Cesamet (nabilone). These drugs are only available with a prescription from a licensed healthcare provider.

On May 28, 2019, Yield Growth Corp. announced that its wholly owned subsidiary, Wright and Well, had developed a dedicated line of CBD products that is set to be manufactured in California. The collection contains less than 0.3% THC in compliance with the U.S. Farm Bill for legal sale across the U.S.

Growing Popularity of Korean Beauty Products to Drive the Asia-Pacific Market

Asia-Pacific is anticipated to witness significant growth in the near future on account of prominent beauty experts in India, China, Japan, and Korea, creating growth opportunities. Korean beauty products are garnering attention on a global scale due to the popularity of Korean celebrities such as BTS boy band. The sale of Korean products has also gained traction over the years, owing to the branding and advertising of beauty skin care product regimes that especially target sheet face masks. For instance, Lady Gaga, an American celebrity, posted her picture with a face sheet mask on a popular networking site, which surged demand for the product. Such celebrity influencers also drive the demand for Korean beauty products.

Segmental Analysis

For the purpose of our study, the CBD skin care products market has been segmented on the basis of product type and distribution channels. By product type, the market can be segmented into oils, lotions and creams, masks and serums, cleansers, and sunscreens.

Oils: The Segment with the Highest Value Share by Product Type — High Adoption of CBD Oils to Fight Signs of Aging

The oils segment dominated the market by product type in 2019, with a 42.2% value share and is expected to retain its market position throughout the forecast period. The use of CBD skin care oils for treating acne and age-related skin problems drives the growth of the segment. The anti-inflammatory properties in CBD oils inhibit oil production, target acne-causing cells, and help in healing skin without irritation.

CBD oils also possess anti-oxidant properties that help reduce the visible signs of aging. They contain two fatty acids, namely omega 3 and omega 6 fatty acids, which prevent water loss and help keep the skin hydrated — a particularly beneficial property for the aged or those more conscious of signs of aging.

Masks & Serums: The Fastest Growing Segment by Product Type — High Adoption of CBD Masks & Serums among the Beauty Conscious Population

The masks and serums segment is expected to register the highest CAGR (32.95%) during the forecast period. Sheet face masks and serums counter-attack the build-up of pollution, dirt, and oil on the skin. The ingredients or the serum used in the sheet masks penetrate deep inside the pores of the skin, cleansing it thoroughly and improving skin hydration and glow. The high adoption of CBD masks and serums among the beauty-conscious population drives the growth of the segment