Cannabidiol (CBD) Infused Cosmetics Market

• June 2023 The Body Shop launched its new CBD-infused skincare line. The new line includes face creams, body lotions, and lip balms.

• May 2023 Sephora announced it would carry a wider selection of CBD-infused skincare products. This is a major move for Sephora, as it is one of the largest beauty retailers in the world.

The global CBD-infused cosmetics market is experiencing significant growth, with various segments contributing to its expanding consumer base. By source, the market is primarily divided into hemp and marijuana-based products. Hemp-derived CBD is the more widely used source in cosmetics due to its legal status in many countries and its non-psychoactive properties. Hemp-based products are often preferred for their broader availability and affordability. On the other hand, marijuana-based CBD is increasingly gaining traction, especially in regions where marijuana use is legalized, though it remains less widespread than hemp-based CBD.

In terms of product categories, the CBD-infused cosmetics market includes skincare, make-up & haircare, fragrances, and others. Skincare dominates the market, driven by the increasing demand for products that address a range of skin concerns, including acne, aging, and inflammation. Make-up and haircare products infused with CBD are also witnessing a surge in demand as consumers seek to incorporate the benefits of CBD into their daily beauty routines. Fragrances and other cosmetic products, although growing, contribute to a smaller share of the market compared to skincare.

When examining the application segment, personal use and professional use represent the key divisions. Personal use products are the largest segment, as consumers increasingly turn to CBD-infused cosmetics for self-care, wellness, and therapeutic benefits. These products are primarily available through both online and offline retail channels. Professional use, including products used in spas, dermatology clinics, and other beauty treatment centers, is expanding as CBD's therapeutic properties gain recognition in the beauty and wellness industry. However, the professional use segment remains a smaller but growing niche in comparison to personal use.

Geographically, North America holds the largest share of the global CBD-infused cosmetics market due to the region's favorable regulatory environment and the high adoption of CBD-based products. Europe follows closely, with increasing acceptance and demand for CBD-infused cosmetics, especially in countries like the UK, Germany, and France. The Asia Pacific region is expected to witness rapid growth, driven by rising awareness and the increasing popularity of CBD products. The Middle East and Africa and Latin America are emerging markets with significant growth potential, although they currently represent smaller shares of the overall market due to regulatory hurdles and limited product availability.

Global CBD Infused Cosmetics Segment Analysis

In this report, the Global CBD Infused Cosmetics Market has been segmented by Product, Application, Distribution Channel, and Geography.

Global CBD Infused Cosmetics Market, Segmentation by Source

The Global CBD Infused Cosmetics Market has been segmented by Source into Hemp, and Marijuana

The Global CBD Infused Cosmetics Market is segmented by source into two primary categories: hemp and marijuana. Hemp is the more widely used source for CBD extraction in the cosmetics industry due to its legal status in many regions and its low levels of THC. Hemp-derived CBD is recognized for its skincare benefits, particularly in moisturizing, anti-inflammatory, and anti-aging properties, making it a popular choice for a wide range of beauty and skincare products.

On the other hand, marijuana-derived CBD has higher levels of THC, which may have psychoactive effects. Despite this, marijuana-derived CBD is also gaining traction in the cosmetics market, especially in regions where marijuana use is legalized for both recreational and medicinal purposes. Its potential to address more specific skin concerns, such as acne or chronic skin conditions, is driving its use in specialized beauty products.

The segmentation by source indicates a clear preference for hemp-based CBD in the global market, but marijuana-derived CBD is carving out a niche for products targeting specific therapeutic uses. The ongoing shift in legislation and growing consumer interest in natural and plant-based ingredients are likely to influence the market dynamics and adoption rates of both sources in the coming years.

Global CBD Infused Cosmetics Market, Segmentation by Product

The Global CBD Infused Cosmetics Market has been segmented by Product into Skincare, Make-Up & Haircare, Fragrances, and Others.

Skincare in the market encompasses CBD-infused offerings in make-up and haircare categories. CBD-infused make-up products, such as foundations, lip balms, and mascaras, are gaining traction among consumers seeking cosmetics with added skincare benefits. Similarly, CBD-infused haircare products, including shampoos, conditioners, and styling treatments, are positioned to address scalp health and hair vitality. The integration of CBD into make-up and haircare formulations reflects the convergence of beauty and wellness trends, appealing to consumers seeking multifunctional products that enhance both appearance and overall well-being.

The segment extends to fragrances, albeit representing a smaller proportion of the market. CBD-infused fragrances leverage the compound's aromatic properties to offer unique sensory experiences while potentially providing relaxation and mood-enhancing effects. Although still nascent, this segment presents opportunities for innovation and differentiation, particularly in niche and luxury fragrance markets.

Beyond these primary categories, the segment encompasses "Others," comprising a diverse array of CBD-infused cosmetic products ranging from bath and body care to oral care and intimate hygiene. This catch-all category underscores the versatility of CBD as an ingredient in cosmetics, with brands exploring novel applications and formulations to meet evolving consumer demands.

The segmentation of the Global CBD Infused Cosmetics Market by product category reflects the market's dynamism and innovation, with skincare leading the charge followed by make-up, haircare, fragrances, and a spectrum of other offerings. As consumer awareness and acceptance of CBD continue to grow, coupled with ongoing advancements in formulation technologies, the market is poised for further diversification and expansion across these product segments.

Global CBD Infused Cosmetics Market, Segmentation by Application

The Global CBD Infused Cosmetics Market has been segmented by Application into Personal Use and Professional Use.

Personal use encompasses products intended for individual consumers for self-care and daily beauty routines. CBD-infused cosmetics targeting personal use are widely available through retail channels, including online platforms, specialty stores, and pharmacies. These products cater to consumers seeking natural and holistic skincare solutions, leveraging CBD's purported therapeutic properties to address various skin concerns such as inflammation, dryness, and acne. From skincare serums to make-up essentials, CBD-infused cosmetics for personal use offer a wide array of options to enhance both beauty and wellness regimens.

Professional use refers to CBD-infused cosmetics utilized by beauty professionals, including aestheticians, dermatologists, and makeup artists, in professional settings such as salons, spas, and clinics. These products are often formulated with higher concentrations of CBD and may include specialized treatments and procedures tailored to specific skin types and conditions. CBD-infused cosmetics for professional use are designed to deliver targeted results and are often recommended as part of comprehensive skincare routines or treatment plans. Additionally, beauty professionals may offer personalized consultations and services to clients seeking customized CBD skincare solutions tailored to their individual needs and preferences.

Global CBD Infused Cosmetics Market, Segmentation by Distribution Channel

The Global CBD Infused Cosmetics Market has been segmented by Distribution Channel into Online Retail and Offline Retail.

Online retail has emerged as a prominent distribution channel, offering consumers unparalleled convenience and accessibility to a wide array of CBD beauty products. Through e-commerce platforms, consumers can browse, compare, and purchase CBD-infused cosmetics from the comfort of their homes, with the added benefit of doorstep delivery. The online retail channel also provides brands with a global reach, enabling them to target diverse demographics and geographic regions through digital marketing strategies and targeted advertising campaigns.

Offline retail encompasses brick-and-mortar establishments such as specialty stores, pharmacies, beauty salons, and department stores that stock CBD-infused cosmetics. These physical retail outlets provide consumers with the opportunity to experience products firsthand, interact with knowledgeable sales staff, and receive personalized recommendations based on their skincare needs and preferences. Offline retail channels also foster brand visibility and trust, particularly among consumers who prefer to purchase beauty products in-store or seek professional guidance before making a purchase decision.

Global CBD Infused Cosmetics Market, Segmentation by Geography

In this report, the Global CBD Infused Cosmetics Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global CBD Infused Cosmetics Market Share (%), by Geographical Region, 2024

In 2022, North America boasted the largest market share, surpassing 40.0%, driven by a burgeoning demand for CBD skin care products. This demand is expected to continue its upward trajectory, fueled by a sizable clientele base and the legalization of cannabis in both the U.S. and Canada. With approximately 33 U.S. states and the District of Columbia having legalized marijuana by July 2021, the U.S. emerges as the world's largest market for such products. Moreover, the presence of renowned producers coupled with the legalization of the industry is poised to propel further expansion in the region over the forthcoming years.

The Asia-Pacific region is anticipated to witness the most significant compound annual growth rate (CAGR) during the forecast period. This growth is attributed to leading countries in the beauty sector, notably China, India, Japan, and South Korea, which present lucrative opportunities for market expansion. Despite the predominance of stringent cannabis regulations across much of Asia, the region's beauty movements. This trend intensifies competition among industry players to innovate and develop novel products. For example, in May 2019, MGC Pharmaceuticals introduced its CBD-based skincare lines in China, signaling a strategic move to tap into the burgeoning Asia-Pacific market.

This report provides an in depth analysis of various factors that impact the dynamics of Global CBD Infused Cosmetics Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers:

• Legalization of Cannabis
• Rising Consumer Demand for Natural Skincare
• Anti-Inflammatory Properties of CBD
• Antioxidant Benefits of CBD

• Growing of Organic Beauty Products - The growth of organic beauty products represents a significant trend in the cosmetics industry, driven by shifting consumer preferences towards natural and sustainable skincare solutions. Organic beauty products are formulated with ingredients sourced from organic farming practices, free from synthetic chemicals, pesticides, and genetically modified organisms (GMOs). This commitment to purity and transparency resonates with consumers who prioritize health, environmental sustainability, and ethical sourcing in their purchasing decisions.

  One key driver of the growth of organic beauty products is increasing awareness of the potential health risks associated with conventional cosmetics. Consumers are becoming more discerning about the ingredients they apply to their skin, as studies have raised concerns about the long-term effects of synthetic chemicals found in many mainstream beauty products. As a result, there is a growing demand for organic alternatives that offer peace of mind and assurance of safety and efficacy.

  The rise of the clean beauty movement has propelled the popularity of organic beauty products, advocating for formulations that are free from harmful ingredients and are environmentally sustainable. Clean beauty enthusiasts prioritize products that prioritize both personal wellness and environmental stewardship, aligning with the principles of organic beauty. This convergence of health, sustainability, and transparency has fueled the growth of the organic beauty sector, prompting brands to reformulate existing products or introduce new lines to meet evolving consumer demands.

  The influence of social media and digital marketing has played a pivotal role in driving awareness and demand for organic beauty products. Influencers and beauty bloggers often tout the benefits of natural skincare ingredients to their followers, showcasing the efficacy and results of organic beauty products through reviews, tutorials, and endorsements. This grassroots advocacy has democratized access to information and empowered consumers to make informed choices about their skincare routines, contributing to the exponential growth of the organic beauty market.

Restraints:

• Regulatory Challenges and Inconsistencies
• Uncertainty Surrounding CBD Legality
• Limited Research On Long-Term Effects of CBD in Cosmetics
• Potential Stigma Associated with Cannabis-Derived Products

• Supply Chain Complexities for Sourcing CBD - The complexities of the supply chain for sourcing CBD present significant challenges for companies operating in the cosmetics industry. CBD, or cannabidiol, is derived from the cannabis plant, specifically from hemp plants, which adds layers of complexity to its production and distribution. One primary challenge is the regulatory landscape surrounding hemp cultivation and CBD extraction, which varies widely across different countries and regions. Inconsistencies in regulations and legal uncertainties create hurdles for companies seeking to source CBD from reliable and compliant suppliers.

  The cultivation and extraction of CBD require specialized expertise and equipment, further complicating the supply chain. Hemp cultivation must adhere to strict agricultural practices to ensure the quality and potency of CBD extracts, including proper soil conditions, irrigation, and pest control. Furthermore, CBD extraction methods, such as solvent extraction or CO2 extraction, require sophisticated machinery and skilled operators to yield high-quality CBD oil or isolate.

  The global demand for CBD has surged in recent years, outpacing supply and leading to shortages and price fluctuations in the market. This imbalance in supply and demand exacerbates supply chain complexities, as companies must navigate competitive sourcing environments and secure reliable suppliers to meet their production needs. Additionally, concerns about product consistency and quality control arise when sourcing CBD from multiple suppliers or regions with varying agricultural practices and extraction techniques.

  The traceability and transparency of CBD supply chains pose challenges for companies seeking to verify the origin and authenticity of their CBD ingredients. Given the prevalence of counterfeit and adulterated CBD products in the market, companies must implement robust supply chain management systems to track and trace the journey of CBD from cultivation to finished product. This includes rigorous testing and certification processes to ensure compliance with regulatory standards and quality assurance protocols.

Opportunities:

• Development of Customized CBD Formulations
• Online Retail Expansion to Reach Wider Consumer
• Strategic Partnerships with Beauty Influencers and Celebrities
• Integration of CBD with Emerging Beauty Trends

• Expansion into Emerging Markets - Expansion into emerging markets presents both opportunities and challenges for companies in the cosmetics industry, particularly those offering CBD-infused products. Emerging markets, characterized by rapidly growing economies and evolving consumer demographics, offer immense growth potential and untapped opportunities for companies seeking to diversify their geographic footprint and capture new market share.

  One significant opportunity in emerging markets is the rising disposable incomes and purchasing power of consumers, particularly in regions such as Asia-Pacific, Latin America, and the Middle East. As economies continue to develop and urbanization accelerates, consumers in these markets are increasingly prioritizing personal care and beauty products, including CBD-infused cosmetics, as part of their lifestyle choices. This growing consumer demand creates a favorable environment for companies to introduce and promote their products in emerging markets.

  Emerging markets often exhibit less saturation and competition compared to mature markets, providing companies with a first-mover advantage and the opportunity to establish brand presence and loyalty. By strategically positioning themselves in emerging markets, companies can capitalize on early adopters and trendsetters, gaining market share and shaping consumer preferences before competitors enter the fray.

  The digital revolution has democratized access to information and e-commerce platforms, facilitating market entry and expansion into emerging markets. Companies can leverage online retail channels and digital marketing strategies to reach consumers in remote areas and bypass traditional distribution barriers. This omnichannel approach enables companies to engage with diverse consumer segments and tailor their marketing messages to local preferences and cultural nuances, driving brand awareness and customer acquisition in emerging markets.

  Expansion into emerging markets also presents challenges and risks for companies, including cultural differences, regulatory complexities, and logistical hurdles. Cultural nuances and consumer preferences vary widely across different regions, necessitating market research and localization strategies to ensure product relevance and resonance. Moreover, regulatory frameworks governing cosmetics and CBD products may differ significantly from established markets, requiring companies to navigate complex compliance requirements and obtain necessary approvals before entering new markets.

Key players in Global CBD Infused Cosmetics Market include:

• Cannuka LLC
• Earthly Body
• Josie Maran
• Kapu Maku LLC
• Kiehls
• LEEF
• Lord Jones
• Sephora USA
• The CBD Skincare Co
• Kush Creams

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis