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CBD is a naturally occurring chemical compound found in hemp or marijuana, obtained from the plant, Cannabis sativa. CBD has proven medical benefits such as reducing inflammation, anti-aging properties, regulating oil production, and neutralizing free radical damage. Increasing pollution and stress have been harming skin health, boosting the adoption of skin care products, including CBD skin care. In addition, the growing inclination of men toward healthier skin and the rising geriatric population have contributed to the market growth.
In 2018, the U.S. introduced the Farm Bill, under which they have legalized cannabinoids derived from industrial hemp and contain THC of less than 0.3%. Moreover, the U.S. has made CBD legal as a supplement for making skin care products such as oil, moisturizer, masks, and others. However, the lack of standardization of rules & regulations and fluctuating cost of raw materials will restrain the market growth. In addition, lack of research and knowledge about the side effects further challenges the growth of the market.
Consumers' increased health and wellness awareness has generated opportunities for natural health and beauty products. Post legalization and growing consumer trends, prominent players, such as Estee Lauder and L’Oréal, have started developing CBD-infused products such as Hello face mask by Origins (Estee Lauder) and Cannabis Sativa Seed Oil by Kiehl’s (L’Oréal). Furthermore, Walgreens, CVS, and many other major retailers have initiated programs to sell CBD products. This will further fuel the market growth and competition in the CBD skin care market.
The COVID-19 pandemic had an impact on the economic and consumer behavior. The lockdown and government restrictions to contain the virus spread put the world at a standstill. Most industries had to shut down manufacturing. The supply chain was disrupted as national and international borders were closed, which altered buying behavior of individuals. During the COVID-19 pandemic, the market was uncertain due to regulations related to healthcare and others, which further created challenges for the supply chain.
There was also a surge in demand for natural products as consumer inclination toward natural-based skin care products grew, but limited supply and closed manufacturing restrained the market growth. Thus, companies have seen a negative impact on the financial performance. Stringent regulations have also hindered the supply chain from fulfilling global demands for international companies.
According to the financial report of Elixinol Wellness Limited, a negative impact on the financial position was recorded during the pandemic. The COVID-19 pandemic had a negative effect on sales, specifically in hypermarkets/supermarkets and specialty stores. In addition, a change in interest rates and continued slowdown in global economic conditions have adversely affected businesses, financial conditions, and the results of operations, liquidity, or prospects.
The report will cover the following key insights:
By type, the market is divided into oils, lotion, mask & cream, and others. CBD oils segment holds a significant share and is gaining more popularity in the market due to its proven benefits such as the ability to treat aging, wrinkles, acne, and others.
By end-user, the market is divided into men and women. Women segment holds a significant share in the market as the use of skin care products is high in women's daily routines. Women's growing inclination toward skin care products is attributed to the fact that they enhance confidence and appearance. As women are getting more concerned about the ingredients used and their effects on the skin, they are looking for more organic and plant-based products, driving the CBD skin care market growth. Nowadays, there is a growing inclination toward self-care in men and women, which further fuels the market growth.
By distribution channel, the market is categorized into hypermarkets/supermarkets, specialty stores, e-commerce, and others. Hypermarket/supermarket segment holds the highest market share due to their availability of a wide range of products and convenience. However, the inclination toward e-commerce is growing for organic products.
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The North American region demonstrated the highest market share owing to the farm bill and legalization of cannabis in 50 states. The North American region has a presence of major manufacturers of CBD skin care products in the country. Thus, North America is expected to continue its substantial growth, whereas other regions where regulations are clear or will be clear can expect a growth in market share.
Furthermore, countries in other regions have restrictions on the production of cannabis, which is adversely affecting the sales of CBD skin care products.
The report includes key players such as Cronos Group Inc., Elixinol Global Ltd., Endoca BV, Isodiol International Inc., Josie Maran Cosmetics LLC, Vertly, Beekman 1802, LILY HEALTH, Seabedee, Foria, KANA SKINCARE, KHUS + KHUS Modern Herbal Fusion, Saint Jane, Keracell, Vertly, Hora, Yuyo Botanics, Beboe, Cannabliss Organics, and Life Elements.
By Type | By End-user | By Distribution Channel | By Geography |
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