Since last year, the European and American regions, especially the North American market, have begun to pay more attention to hemp beauty products. At the beginning of this year, this hemp trend from Europe and the United States also began to affect the Chinese market, especially the domestic capital market related to industrial cannabis.
CBD Market Analysis
1.The legalization of global hemp continues to advance, and the CBD has broad growth potential
In the past two years, many countries have gradually liberalized the legalization of hemp, mainly in the fields of medicine and research. In 2017, hemp extracts were legal in Germany. In October 2018, the legalization of cannabis (drugs) in Canada directly impacted the world's perception of cannabis, and Canada became the second country in the world to fully legalize cannabis. In January of the same year, the British government approved the use of medical hemp, and South Korea became the first country in East Asia to legalize medical hemp.
By the end of December 2018, the United States had legalized the medical hemp in 33 states and legalized marijuana in 10 states. In addition, on December 20th, US President Trump signed the 2018 "Agricultural Bill", industrial marijuana in the United States is fully legalized, and cannabisdiol is also fully legalized in the United States. Up to now, 34 countries in Germany, Australia, Israel, and South Korea have achieved full legalization of medical hemp, and some medical hemp regulations in 9 countries including the United Kingdom, France, and New Zealand have been legalized.
2. CBD product line is rich, market growth is fast
Developed countries and developed countries have already produced related terminal products (medicine, health products, cosmetics) in the market, and have a wide range of uses. Take the United States as an example, the United States CBD products are dazzling, such as medical oil, tincture, VAPE pen, capsules, ointments, topical stickers, skin care products, soft candy, beverages, etc.
According to statistics, about 23% of users in the United States monthly It costs 21-50 US dollars to purchase CBD products. With the current legalization of CBD in the United States, the CBD has broad prospects.
According to investment research firm Cowen, the retail sales of CBD consumer goods in the United States in 2018 is estimated to be between $600 million and $2 billion. If conservatively estimated, the sales of CBD consumer goods will reach 16 billion US dollars by 2025. Among them, health and wellness products will lead the trend, and food, beverage, beauty and tobacco products will also be favored.
At the same time, data from the British Cannabis Industry Association show that in the past 12 months, the number of people using CBD oil in the UK has doubled, from 125,000 to 250,000.
The application and development of CBD in the cosmetics industry
At present, the market of cannabis cosmetics products are mainly divided into two categories, one is the addition of hemp seed oil, the function is to lock water and moisturizing, water and oil balance; in addition to hemp seed oil, in recent two years, many European and American brands began to add CBD In cosmetics, especially skin care products.
Overview of the cannabis cosmetics market
(1) Adding cosmetics based on hemp seed oil
Hemp seed oil contains antioxidants, proteins, vitamins, phospholipids and various minerals. In the past two years, many well-known brands of large companies have entered the market of cannabis. The market is also more mature and more mature. Oil components are used as a test for the market.
(2) Adding cosmetics with CBD ingredients
In addition to hemp seed oil, due to the strong anti-inflammatory effect of CBD, under the influence of beauty editors and KOL, healthy consumers regard CBD as an effective ingredient. Of course, many brands are also scrambling to put them into products, especially in Europe and America.
2. The size and characteristics of the CBD skin care market
In the cosmetics market, based on the anti-inflammatory, antiseptic, analgesic and anti-anxiety effects of CBD, the products with CBD ingredients are mainly based on skin care products. According to the latest CBD Skin Care Market research report by consulting firm FMI :
(1) The CBD skin care market will grow rapidly with a compound growth rate of 33%. In 2017, the global CBD skin care product market will be nearly 370 million US dollars. It is expected that the market size will reach 645 million US dollars in 2019. The global CBD skin care product market will expand by a compound annual growth rate of more than 33% from 2019 to 2027.
(2) North America is the largest market for CBD skin care products. North America has the largest consumer group of CBD skin care products and CBD product manufacturers and brands, and will continue to be the most profitable market for CBD skin care by 2027.
(3) CBD skin care oil is still the first choice for CBD skin care products. CBD skin care oils are gaining popularity in the CBD skin care market due to ease of use, anti-aging and other acne-removing features.
The development trend of CBD in the cosmetics market
1. More cannabinoids are applied to the product, not just the CBD
In industrial cannabis and medical cannabis, there are two main types of cannabinoids: THC and CBD, and the others are relatively small. Despite this, recent studies of these cannabinoids have shown that they are expected to be effective ingredients for health. Jessica Assaf, Prima's co-founder and chief education officer, explained: “The main functional ingredients are CBD and THC. Other cannabinoid ingredients can be based on assistance.” This is not to understand the structure of plants (marijuana), but to find out How these compounds work together and reference their construction in the product formulation ingredients.
In fact, the current brand in the US market has paid attention to terpenes (another chemical component in cannabis) that synergizes with the CBD to enhance the role of the CBD.
2. Prove the effectiveness of CBD products and make brands stand out from the competition
A large number of studies have also found that the CBD content of many products is not correct. However, there is currently no law in the United States that requires product companies to test CBD content, whether they are used in cosmetics or food. The CBD has gradually become a market buzzword with little supervision, and sometimes it is difficult to know whether the CBD products sold contain effective ingredients. Therefore, it can prove the effectiveness of CBD products and will enhance the competitiveness of the brand.
3. The proliferation of CBD cosmetics products
In the field of health and beauty, the emergence of CBD products is mainly to relieve pain, anxiety and skin care, but the products of major brands are launching more cosmetics containing CBD ingredients.
4. Professional beauty agencies are actively embracing CBD products
On the professional line, SPA and salon are eager to embrace CBD products, and the combination of facial beauty and manicure is rapidly developing.
Dermatologists and medical spas are another area of CBD products. Mainly CBD ingredients can help after skin treatment. From micro-slip and micro-needle to waxing, lip injection, fillers and botulinum, CBD is a powerful ingredient in accelerating healing and recovery.
5. Independent brands rise when big brands wait and see, but big brands will soon enter the market.
Well-known brands of big companies have entered the skin care market of cannabis ingredients, but they have not been involved in the CBD. They are more cautious on the CBD. Because large companies usually face many risks, once they are handled, they will have a serious impact. This is also the current situation of large enterprises. The main reason for not entering the CBD cosmetics market. However, in the near future, whether through incubation, acquisition, small investment or joint venture, the cosmetics giant is developing strategies for entering the CBD cosmetics field in the future. However, in the process of watching the giants, mainly independent start-up brands and many small and medium-sized brands dominated by women are competing for the market share of the CBD. But the time for the giants to wait and see will not last long. When they are ready, they will see that they will put a lot of resources into the field of CBD cosmetics.