TAGS: Sustainability / Natural Cosmetics Skin Care Decorative Cosmetic
According to Grand View Research, the global CBD skin care market size was valued at USD 964.1 million in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 31.5% from 2023 to 2030.
Factors Driving the Market
The growing awareness concerning the benefits of CBD-infused personal care products is expected to create demand for the market during the forecast period. The growing adoption of CBD skin care products in North America, supported by the legalization of cannabis cultivation, is expected to further augment the industry growth during the forecast period.
During the COVID-19 pandemic, CBD skin care products witnessed a surge in demand across the globe owing to the consumer shift towards natural and eco-friendly beauty and personal care products.
The COVID-19 outbreak drove a 20% jump in the year-over-year sales of CBD-based skin care products. In addition, the pandemic led to stockpiling of items, which resulted to have altered people's shopping habits towards e-commerce platforms. Growing skin concern, such as sensitivity, inflammatory conditions, acne, and dryness, is expected to drive the demand for skincare products with natural ingredients boosting the demand for CBD-based products.
Hence, key players are launching products to cater to the consumer demand for serious skin conditions. For instance, Bombay Hemp Company, an Indian firm specializing in hemp and CBD health & wellness products, expanded its skin care products range owing to the growing consumer interest in hemp oils and CBD beauty products and soars. The product range includes facial creams, balms, and lotions to overcome various skin issues. The rising awareness about the advantages of cannabidiol and its medical capabilities is the reason supporting the popularity of cannabidiol skincare across the world.
20% of consumers prefer cannabis seed extract-made creams including moisturizers, BB cream, and others owing to the presence of natural ingredients. Furthermore, the industry value is boosted by an increase in public and private support for focused research efforts, changing lifestyles coupled with increased product innovations and development due to global technology breakthroughs. The increasing number of innovative product launches to cater to the growing product demand from customers is expected to further support the industry growth.
For instance, Avicanna Inc., a biopharmaceutical company focused on the development, manufacturing, and commercialization of plant-derived cannabinoid-based products, announced to launch of CBD dermo-cosmetic products under the brand ‘Pura Earth’. The product line is said to be clinically tested and commercialized before it is out for sale. Hence, these innovative product launches are promoting the demand for CBD-based skin care products across the globe.
In addition, the healing properties of these ingredients are expected to encourage the manufacturers to develop products infused with the benefits of CBD. For instance, Sephora launched a special section solely dedicated to CBD skin care products in its stores. Moreover, Ulta Beauty, which is known for its large network of beauty stores offering cosmetics and skincare products, is also planning to dedicate a special section for such products in the coming years. Furthermore, a rise in the legalization of cannabis for medical and recreational purposes is a major factor supporting product demand.
Product Insights
The oils segment led the industry in 2022 and accounted for the largest share of more than 38.85% of the overall revenue owing to the high effectiveness of CBD derived from hemp for various skin conditions, such as dryness, aging, and acne. For instance, Amway launched a glowing skin product line and CBD facial oil to infuse glow in the skin.
Furthermore, the industry value is increasing as a result of the rising technical developments in manufacturing technologies. An increasing number of technical breakthroughs, aimed at reducing manufacturing costs and waste, together with greater industrialization, have expanded the usage of hemp products for a variety of applications.
This has assured a positive outlook for the overall industry. The masks and serums segment is anticipated to register the fastest CAGR during the forecast period. These products are expected to gain a significant share of the global market owing to the increasing demand for facial mask sheets and serums that penetrate deep into the skin and are easy to apply.
For instance, Czech Republic-based start-up, Moia Elixirs, developed a cannabidiol-infused nanofiber face mask that activates on contact with water and boasts 97% absorption. Furthermore, a rise in technological advancements to develop the product following intensive R&D would further benefit the segment's growth.
Distribution Channel Insights
The department stores segment captured the largest revenue share of more than 29.00% in 2022. The growth of the segment is mainly driven by the rising consumer inclination toward department stores as a primary source to purchase beauty and personal care products.
54% of consumers said that they're likely to look at a skin care product online and buy it in-store including in departmental stores. These establishments also provide a reasonable selection of products and assist customers in making rapid purchasing decisions for the required skincare product.
The e-commerce segment is anticipated to expand at the highest CAGR during the forecast period. E-commerce development in the personal care and skincare industry has been rapid, with companies launching their products on online websites and shopping apps to increase their product visibility among consumers.
For instance, Can Global, a medical cannabis firm launched the CBD-hemp skincare brand Fuss Pot in stores as well as made it available on the e-commerce platform. The brand has developed two different skincare ranges: a hemp-based line targeting aging and a CBD-based line for repair. The product range includes cleansers, serums, creams, and body oils.
Source Insights
The hemp-based products segment held the largest share of more than 63.50% in 2022 on account of the high fatty acid content, which helps improve the appearance of aged skin, provides moisturization-free radical protection, and promotes healthy cell function. Hemp-infused products also help in reducing discomfort by soothing and rejuvenating dry and damaged skin.
For instance, Lotus launched a new product line, ‘Hemp Youth Glow’ centered on organic cold-pressed hemp seed oil. Furthermore, they also help in controlling aging problems, which is likely to drive the application of this source in the coming years.
Marijuana-based products are expected to witness significant growth in the near future. In terms of lowering sebum production, reducing inflammation on a cellular level, reducing redness, and suppressing itch, marijuana-derived skin care is beneficial.
It also improves the skin’s natural healing process and reduces the length of outbreaks, this boosts the use of these products. For instance, Nature of Things launched the Elemental Skincare collection. The product range includes face creams for various skin types with ingredients including vitamin C, cannabis, and squalene.
Regional Insights
North America held the largest share of over 40.0% in 2022. Demand for CBD skin care products from the North American region is expected to remain high due to the presence of a large customer base and the legalization of cannabis in the U.S. and Canada. About 33 states in the U.S. and the District of Colombia have legalized cannabis in the U.S., thereby making it the largest market in the world. Thus, the legalization and presence of prominent beauty care manufacturers are expected to contribute to the industry's growth over the next few years.
Asia Pacific is expected to witness the fastest CAGR during the forecast years. Prominent beauty expert countries, such as China, India, Japan, and South Korea, are anticipated to offer potential opportunities for market growth in the next seven years.
Although cannabis is largely illegal across Asia, Asian beauty movements, such as J-beauty and K-beauty, are the leaders of the global market, which is propelling the competitors to launch new products. For instance, MGC Pharmaceuticals launched its CBD-based skincare products in China. The initiative was aimed at expanding the market in the Asia Pacific region.
Source: Grand View Research
