Analysis of the CBD Cosmetic Market
The CBD cosmetics market has been growing continuously for a decade and the year 2022 was no different. This trend of rising popularity is largely a product of the growing awareness about the advantages of CBD in skincare and beauty products. This means that the public is more prone to accepting these kinds of products, especially when it comes to skin conditions such as dry skin, eczema, psoriasis and even acne.
Times were never so exciting for investing in the CBD cosmetic market. The year 2021 has been revolutionary in many ways. It demonstrated how mature and resilient the industry is as it kept growing even in pandemics. But more vitally, it has been a year of improved European regulations.
The European Union has finally recognized cannabidiol (CBD) as safe for adding to cosmetics. Until now, only synthetic CBD could be added to cosmetics. But in February 2021, the EU added cannabis extract or resin or tincture to the CosIng database, which is the European database of components that may be added to cosmetics. This means that it is recognised as safe for adding to cosmetics, and thus increasing the requirement for organic CBD oil. This decision has definitely provided a much-needed impetus to the CBD cosmetic industry. As lack of clarity in specific regulations, the risk of being fined kept European manufacturers from venturing into the CBD cosmetic market.
In fact, European Industrial Hemp Association (EIHA) proposes a three-tier approach in its position paper:
- To strictly regulate high dose CBD products and consider them as medications.
- Recognize a medium dose of up to 70 mg/d as food supplements, thus allowing its wider use, like silymarin, ginkgo biloba, or certain vitamins.
- Allow wider use of low concentration CBD in food products, cosmetics, and other items for daily use.
But the progress did not stop here. Although there have not been any major changes in the past year, the debate about CBD in cosmetics is as alive as ever and has made the European market of CBD infused cosmetics and self care products a fast growing industry. The most obvious obstacle that is holding back this region is that every country has its own specific laws. This makes it more difficult for manufacturers who have to tweak their products to satisfy each country’s preferences.
CBD Cosmetic Market Size
The CBD infused cosmetic market remains quite disintegrated, and numerous players dominate it, some of them being: Infineon Technologies AG, The CBD Skincare Co, Endoca BV, Cronos Group Inc, Joy Organics, Elixinol Limited and many more.However, such a scenario offers lots of opportunities for new entrants since entering the consolidated market dominated by just a few brands would be more challenging.
There is poor understanding regarding the exact size of the global CBD cosmetic market, as data is quite hazy. But The analyst has been monitoring the CBD-infused cosmetics market and it is poised to grow by $ 3.15 bn during 2022-2026. And what is more attractive is that this segment continues to be fast growing.
CBD has provided many small-time players to come up with value-added, premium cosmetics. However, the good thing about CBD infused cosmetics is that many lesser-known players are able to charge a much higher price for their products.
CBD is now in almost every kind of cosmetic product ranging from beauty products like mascara to skincare creams, moisturizers, facemasks, oils, cleansers. It is also more prominent in products for acne treatments.Some companies are also introducing CBD infused products for more specific needs like helping with oily skin, managing acne, reducing skin irritation, and much more.
CBD Cosmetic Industry Growth
Here again, the projections differ. Nonetheless, the market report by Technavio suggests that the market has witnessed a CAGR of nearly 25% in the last few years, and this growth rate is only expected to accelerate.
Despite the steady growth of the European market, there is no doubt that the US continues to dominate the market. It is because the EU has been more stringent regarding the widespread use of CBD. Furthermore, European agencies took longer to legalize CBD infused cosmetics.
In addition to being the biggest market region, the US will also continue to see the biggest growth: over 40 % of global market growth is expected to originate from this region. However, the EU is picking up the pace and may even become as strong as the US market in the near future, or even exceed it.
Entering this segment may help existing CBD manufacturers to expand their portfolio. In addition, the existing cosmetic producers are starting to come up with their own CBD infused cosmetic products,which is strengthening the market even more. It is evident that CBD infused cosmetics will continue to enjoy premium prices in the foreseeable future.
Current CBD Cosmetic Industry Trends
Most trends clearly indicate that CBD is bound to become one of the essential components in the cosmetics industry. The ongoing research will ensure its growth and supply new, innovative products to keep the market interesting.
Many chose products with CBD because of its benefits for skin like antioxidants, skin conditioning, skin protection, and even anti-sebum. It can considerably help overcome skin redness, dullness and has a calming effect.
This is why customers are not just looking for a beauty product but also to get rid of some minor skin- related issues. To accommodate this demand, vendors are focusing on making specific products that implement new strategies to help with hair and skin related issues. Many focus on creating premium ranges to try and enter the luxury market. This is an effective strategy to secure your place in the industry. And as luxury products become more popular, the demand for more affordable options also rises, creating a steady increase in popularity. The luxury market is also a great place for introducing organic cosmetics including ingredients such as aloe vera, sea salt, shea butter, mango seed butter, lanolin, and others, which are preferred by consumers at present.
CBD oil is still quite a new trend in cosmetics, as evident from the graph below. Although there has been some interest in it for the last 10 years, it has really picked up from 2017 onwards. The growth of interest in CBD oil is incredible.
Is CBD going to be the next big thing in cosmetics? The trends of the beauty industry seem to confirm that. We may start seeing some more CBD oil makeup products start popping up in the near future.
Essentia Pura’s Analysis of the CBD Cosmetic Market
Here are Essentia Pura’s takes on the CBD cosmetic market:
- It is still a nascent market, with low market access costs
- There has been a sudden increase in interest in CBD cosmetics since 2019, thus a sudden upsurge expected in the market in coming years
- CBD market in EU may pose CAGR of above 30% for next five years, or at least up to 2025
- The legalization of natural CBD extract and its addition to the CosIng database will further boost the EU CBD cosmetics market
- One can still expect a premium price for CBD cosmetics
- Demand for CBD cosmetics private label will increase
The market’s strongest area continues to be skincare, boasting the largest range of different products. Medical news today lists the best CBD products to be lip balms, serums and face and body creams. Many of these items have the common characteristic of being hydrating. Another great source if you want to try some new CBD infused cosmetics is allure, who created a list of products with the help of their readers.
Opportunities for CBD Cosmetic Businesses in 2022
CBD can be added to almost every kind of cosmetic product. Therefore, it does not essentially have to be targeted at managing some skin conditions. In fact, decorative cosmetics will remain a bigger segment than cosmeceuticals. Thus, more people would buy CBD infused mascara or day-to-day skincare products than CBD products for managing acne.
People buy CBD cosmetics due to perceived benefits. They believe that CBD cosmetics are in some way superior, and it may be the case in some instances. Thus, CBD infused creams, moisturizers, serums, soaps, masks, lip balms, and eye balms are all in trend and offer opportunities.
To conclude, CBD cosmetics offer an excellent opportunity to expand the existing CBD business. It is an equally good segment for newcomers. It is still a segment in its infancy, ready to witness a boom in the coming years. Take your step into the CBD cosmetic market with our white label CBD skincare line. Fill the contact form for your order or send us an e-mail with any questions or concerns about our products.