CBD and it’s Domination of the Beauty Marketplace

Our UrthLeaf specialists bring you this fascinating article on CBD and the Beauty Marketplace. 

Why CBD in the beauty marketplace?

To fully understand why CBD is on the rise within the beauty marketplace, it’s important to appreciate what it is and the benefits of using it in beauty regimes.

CBD is a cannabis plant extract, which is comprised of about 80 cannabinoids. Unlike THC (tetrahydrocannabinol) – the psychoactive cannabinoid which gives people the notorious cannabis high – CBD is thought to contain calming and anti-inflammatory properties without having to alter someone’s state of mind. These beneficial qualities of CBD make it a great ingredient to include in beauty and skincare products.

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History of the Rise of CBD

Not long after cannabis was legalized in different states across America, beauty products that contained CBD began to appear on the marketplace. The CBD makeup sector has experienced fast growth and the market in the States for CBD is expected to be worth $22bn by 2022. In our opinion, this is a prediction not to be ignored! The popularity of the substance reflects the prevalence of today’s anxiety economy as most consumers are looking for products that can help them relax. CBD suits the lifestyle of Gen Z and Millennial consumers – both demographics appear to have less interest in attending parties or drinking alcohol than previous generations.

So today, people value the ability to relax but the rise of CBD can also thank legal events. After the 2018 Farm Bill passed, more businesses are currently free to create products that contain CBD. As it is a non-psychoactive ingredient, it is regarded highly for its natural health properties without the risk of getting high.

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CBD and the Endless Possibilities

There should be no surprise that CBD is a rapidly growing and emerging classification within the entire marijuana industry! From make-up to facial creams to perfumes and shampoos, there is a vast range of cosmetic products within this classification. An increasing quantity of investors are watching the growth of CBD within the beauty industry, especially as it takes on and stands up against the multibillion-dollar traditional beauty marketplace. As this is a massive sector to penetrate, how large of a market is CBD beauty exactly?


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CBD and its Domination

The possibility of the CBD beauty marketplace is huge. One enormous benefit is that most products might be sold over the counter without the need for a prescription. This means most customers can easily gain access to CBD products. As mentioned before, between 2018 and 2019, major names in the beauty retail business have seen this marketplace potential and have ventured into this swiftly growing space.

Here are some names you might recognize:

  • Sephora (owned by LVMH Moet Hennessy Louis Vuitton SE) came out with a specially curated segment that is entirely committed to CBD products within its stores.
  • Ulta Beauty, known for its chains of beauty stores selling skincare products and cosmetics, has shown an interest in the world of CBD.
  • Barneys, in February, has said that it is set to place a variety of CBD beauty products within its store in Beverly Hills. As well, the department store will sell and design high-end cannabis accessories, from vaporizers and marijuana flowers to bongs that are worth $950!

In addition to the above, some luxury retailers have begun CBD-infused products. For example, L’Oreal has released Kiehl’s Cannabis Serum, Unilever have Murad’s Hemp Serum and Estee Lauder created the Originals Hemp Mask.

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Even Wall Street has noticed CBD

CBD beauty products are so popular that Wall Street analysts have begun to sit up and take notice. They have stated that CBD beauty products may sit within a whole different category from medical and recreational marijuana. Major names within the financial industry have begun to cover CBD beauty-associated stocks.

One month after Jefferies analysts began to cover marijuana stocks, they realized that retailers and consumers are gravitating toward CBD’s benefits within the natural beauty and wellness industry. They discovered that search trends for ‘CBD Beauty’ online had risen by 370% in January and February of 2019. They have predicted that the CBD beauty industry might reach $25bn in the next 10 years. This would take up 15% of the marketplace, which was once dominated by the traditional skincare marketplace, presently sitting at $167bn.

To put this into context, research performed by Brightfield Group a couple of years ago put the whole cannabis market – cosmetics, medical and recreational combined – at a value of $22bn by the year 2022. Jefferies is now predicting that this combined market value will only be for CBD within the beauty industry.

UrthLeaf Hemp Healing Salve

Where does CBD growth go from here?

Looking back, when there were only a few States legalizing recreational cannabis, CBD use within beauty products was restricted to high-end customers and celebrities. For example, Alessandra Ambrosio (of Victoria’s Secret) utilized CBD oil to maximize sleep to appear refreshed for fashion shows. Mandy Moore used CBD lotion on her feet to endure hours of wearing high heels. Olivia Wilde also swore by the exact same product and used it to have the ability to perform in multiple shows upon Broadway.

Brightfield Group has said that with celebrity attention, beauty industry revenues have soared 340% over the years. While figures were just under $4m in 2017, revenues for CBD skincare and beauty products in 2018 were already at $17m.

It’s important to understand how the conventional cosmetic marketplace is currently evolving. Today, the market is saturated with natural beauty products. Natural beauty skincare and cosmetics – using natural ingredients rather than strong chemicals – has risen over 5 times from the $230m in annual sales it produced in 2013, to $1.3bn in 2017.

Clearly, to us and to observers of the market, natural beauty is rapidly taking over from conventional cosmetics. If that is how the market is moving, then CBD beauty products, using natural ingredients, can only get stronger and eat up the beauty product sales which are currently out there for mainstream consumers.

If the popularity of CBD continues at its present rate, its use will probably become mainstream and normalized. Be prepared to see CBD within more beauty products from major brands and the launch of even more CBD-centred beauty brands. Urthleaf is a premier supplier of CBD products so why wait for the big brands to catch up?

So don’t hesitate to explore this high-quality product that’s lab-tested to ensure it’s premium ingredients are consistent and safe.


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