Cannabidiol-based skincare products, or generally known as CBD skincare products, are gaining fame due to their intact natural texture with no or minimum chemical collusion. The rise in accessible income and better living standards has made people more responsive towards their health and skincare entrails. CBD skincare products offer them a variety of product lines with promising results for healthy skin. The CBD skincare market size has significantly expanded over the years and is expected to share a major chunk of the cosmetic market in the succeeding years.
The CBD skincare market growth depends on the ease of availability and cost efficiency to the consumers alongside legal permissions and acceptance by the government. Its natural benefits are the prime region for its popularity, especially among the younger generation and women.
The Surge in Demand Due to Its Skincare Benefits
Cannabidiol is a chemical compound, which is not psychoactive but found in plants like marijuana and hemp. This chemical compound contains anti-oxidants, which are necessary for the body, as they prevent cells from radicals, produced during the cell-level breakdown of food or when exposed to tobacco smoke or natural/synthetic radiation. Anti-oxidants also lessen the growth of cancer-causing cells and help prevent several heart diseases. Further, the compound has anti-inflammatory properties, which help fight skin dryness and inflammation. Cannabidiol compound also helps reduce acne, as it prevents excessive sebum production in the skin. These properties of Cannabidiol make it the most pertinent ingredient for skincare products.
There is a wide variety of CBD skincare-based product lines including serums, face creams, sun creams, cleanser, and chapsticks. But of them all, CBD oils are most preferred. CBD based skincare oil comes in portable capsules, which are light-weighted and easy to carry. Also, these capsules ensure mess-free applicability and less environmental damage. Owing to these characteristics, skincare oils have significant dominance in the cosmetic market. CBD skincare oil, in particular, is expected to widely maneuver its way.
Obstacles for CBD Skincare Market
Despite its notable merits as a skincare product, the CBD skincare market is prone to a number of de-merits. Of all, the core compound, Cannabidiol, is an expensive raw material and difficult to extract. This, in turn, increases the final cost of the products, leading to an increased price and reduction in demand. Further, due to its natural texture with minimum or zero synthetic chemical addition, CBD skincare products have a lower shelf life. In general, these products are expected to be utilized within a year or so of their manufacturing, ensuring proper storage conditions.
And the major hindrance to the CBD market growth is its core extraction source. Marijuana and hemp plants, from which cannabidiol compound is extracted, also contain tetrahydrocannabiol or THC, as known commonly. THC is a psychoactive chemical compound and interferes with natural THC-like chemicals in the human body, resulting in an alteration of senses and body activities. Hence, consumption of THC, in any form, is considered illegal in some countries. And since some THC does get extracted alongside cannabidiol compound, CBD skincare products are also declared illegal in those countries.
Producers and investors, around the world, are digging their heels deep to find a solution to such hindrances with high investments in R&D, technology, promotion and advertisement, and environmental precautions. Ignite International Brand, for instance, extended its partnership with UK-based CBD skincare manufacturers, intending to innovate and add a new CBD product line including bath bombs, roll-ons, tattoo-creams, and moisturizers. Further, CBD skincare producers are making various attempts to convincing government lobbies to legalize CBD products with the assurance of safety.
The Global Supply Chain of CBD Skincare Products
In the Era of e-commerce, CBD skincare market growth is highly dependent on its online channel. With the availability of products at one's doorstep, non-essential but significant products, such as skin care products, are shopped online. Also with the growing trend of branded products, and international trade, international brands are easily purchased through the online channel. Zhenshiming, a China-based CBD product manufacturing company, recently launched its CBD skincare products on the Chinese online shopping app, Taobao. Companies, in the industry, are taking a scrutinized note of growing social media habits and strategizing accordingly. These company aims to strengthen its brand name and make them widely available. In today’s world, social media play a vital role when it comes to brand building and recognition. Acquisition and collaborations are other tactics adopted by companies to expand in their domain. Recently, Alicia+Olivia collaborated with Kush Queen, a renowned CBD skincare manufacturing company, to strengthen its brand name. The offline channels, on the other hand, do play a remarkable role in the home country- i.e. in Europe and North America, where they are consumed and produced at a significant mass.
The dominant producer of CBD skincare products is the European Union. There the environmental, climatic and legal surrounding is most suitable for mass production. Europe has leading CBD skincare manufacturing companies and CBD skin care product brands, which are globally consumed. Europe is also the home for a large segment of the market consumer. With their surge in income, consumers there demand more natural products. North America is also emerging as another significant market for CBD skincare products. With the implementation of the Farm Bill, 2018, in the U.S., the cultivation of hemp and marijuana plants was legalized, as long as it’s for recreation and therapy purposes. But the Farm Bill dugway for CBD skincare product to explore new opportunities.
Talking about the Asia Pacific region, China is emerging as a dominant market for the cosmetic industry. China has shown significant growth in the consumption of CBD skincare products and has a promising future. Analytics forecasts that China can solely drive the CBD skincare market, in the region. Further, the CBD skincare market is showing notable growth in other countries as well, with changes in regulations and laws.