By Emily Ledger
As Cannabis laws and regulations continue to loosen, an array of industries are expected to expand their incorporation of cannabidiol and other Cannabis compounds. Perhaps one of the industries most poised to take advantage of CBD is the beauty industry.
Small companies have been increasingly integrating CBD into their skincare and beauty products over the last few years. An overwhelming number of start-up companies are even building their entire brand and portfolio around the ingredient. And this growth is expected to continue.
In their recent report, Disrupting Beauty, Prohibition Partners valued the global CBD skincare market, in 2018, at approximately $710 million. The Cannabis research company reportedly expects this market to reach projected sales of around $959 million by 2024. In addition, the CBD skincare market could claim a 10% share of global skincare sales within 5-10 years.
Big Beauty Vs. Indie Brands
Despite the ever-growing popularity of CBD, multi-national companies in each industry are continuing to keep a safe distance from the Cannabis compound. Prohibition Partners points out that when big industry players have explored the use of CBD, they have done so “through acquisitions, investment, and joint ventures.” Some big beauty brands have incorporated hemp – perhaps in an attempt to remain relevant in the age of CBD. However, some have labelled this attempt as ‘weed-washing’.
While CBD remains a topic of debate in global markets – particularly in the US – big companies are expected to continue with their exercise in caution. This has so far left a gap in the market which ‘Indie’ brands have been happy to fill. Despite lacking the independent reach of larger businesses, Indie companies are being given a seat at the table by big retailers such as Sephora, Ulta, and Boots, who are eager to meet demand.
CBD Beauty Regulations
As is the case with most CBD products in markets across the world, there are currently no official industry or government-enforced regulations for the standard of CBD beauty products. As a result, there are certainly many products available on the market which make unsubstantiated claims.
This is reflected most obviously in the CBD wellness sector. A number of CBD oil tinctures were tested in the UK and the US for their purity and content. Of those tested, a shocking number of products were found to be mislabelled in concern to their contents.
A Growing Market
The current lack of regulation is, no doubt, enabling poor quality products to enter the market. However, there are still a large number of well-meaning, high-quality brands available in the CBD skincare and beauty space.
On the other hand, the current lack of guidance does appear to be holding back even greater market growth. As CBD becomes more established in the ‘norm’ of beauty ingredients, big players, who are currently holding back, are expected to enter the space and boost projected sales to an even larger customer base.