The market was valued at $273.663 million in 2019, says ResearchAndMarkets.
Increasing disposable incomes and living standards have impacted people’s focus on personal well-being which also includes skincare regimes. Consumers, especially youth, are demanding new skincare products with innovative and natural ingredients. As such, the demand for CBD skincare products is rapidly growing worldwide, says ResearchAndMarkets.
The report says that rising awareness about various benefits of CBD as one of the ingredients in skincare products such as serums and oils is further fueling the market growth of CBD skincare. With the emerging popularity of CBD skincare products, small investors are flocking to the CBD skincare market. Furthermore, market players are continuously engaged in growth strategies while launching new products, thus, positively impacting the market growth of CBD skincare.
Despite this growth, CBD is still illegal in several countries which is the major restraining factor for the market growth. For example, in Australia, both CBD and THC are entirely banned from cosmetics. Also, these products are quite expensive which is also hindering the CBD skincare market to reach its full potential.
CBD-Based Skincare Oils Gain Popularity
By product type, CBD-based skincare oils account for a considerable market share during the forecast period since they are considered to have both anti-aging and acne-fighting properties, thus making them popular among women to maintain their skin’s youthfulness.
Online Segment Witnesses a Higher CAGR
By distribution channel, the online segment is projected to witness a noteworthy CAGR during the forecast period owing to the booming global e-commerce industry. Moreover, growing international trade of cosmetics and skincare products also allows customers to choose from various international brands that are easily available on online stores, thereby driving the market growth of CBD skincare across this segment.
Major Geographic Markets
Europe is the major market for CBD skincare as CBD is legal to be used for various purposes in almost every European country. The region is also the home to some international beauty brands which are funneling investments in R&D while launching new CBD skincare lines.
North America also holds a decent market share throughout the forecast period. The presence of major skincare companies in the U.S. and Canada coupled with rising awareness about the benefits of CBD skincare products is driving the demand for CBD skincare products in this region. The legalization of cannabis for recreational or therapeutic use across this region is further supporting the market growth of CBD skincare. The Farm Bill of 2018 removed hemp from the Controlled Substances Act and paved the way for legal cultivation, possession, sale, and distribution of the hemp plant, providing the U.S. a massive head start in the North American CBD skincare market.
China is the leading producer of hemp across the globe. According to the report, the growing sale of skincare products via online channels is further contributing to the growth of the CBD skincare market in this region.
Prominent key market players in the CBD Skincare market include Cronos Group Inc., lixinol Global Ltd., Endoca BV, Isodiol International Inc., Josie Maran Cosmetics LLC, Kiehl’s, The CBD Skincare Co, Cannuka LLC, Ignite, Ovation Science Inc. and Jane Street LLC. These companies hold a noteworthy share in the market on account of their good brand image and product offerings.