The cannabidiol (CBD)-infused cosmetics market is threatening to burst at the seams, should the current market trend to persist. Recent reports have confirmed a positive growth uptick in the CBD market of about 25% since 2020. [1] This trend is likely to persist for the next three years, heading up to 2024.
The report shows strong fragmentation in the market, which is likely to gain momentum during the forecast period. With stiff competition in the market, cannabis businesses are becoming creative in their marketing strategies, employing both organic and inorganic approaches. Some companies have turned to digital marketing as a better way to engage with customers. Other trends include offering discounts and shopping vouchers and using recyclable packaging that appeals to the eco-conscious consumer.
CBD Infused Cosmetics Market Segmentation
The CBD cosmetics market is segmented into:
- Skincare: lotions, creams, masks, serums, moisturizers cleansers, etc.
- Makeup: lipbalms, lipsticks, mascara, eyeshadow, etc.
- haircare: shampoo, conditioners, hair masks
- Fragrances and candles
Two major factors have fuelled the growth of this category:
1. Increased awareness and sensitization on the importance of skincare globally
Consumers are aware of the dangers that are associated with synthetic cosmetic products. Consequently, they are willing to spend more on organic skincare products, especially those derived from plants , such as CBD. Consumers are also becoming increasingly aware of the health benefits of CBD, both from anecdotal reports and scientific research. These factors have fuelled the demand for natural CBD skincare products that have no harmful ingredients. The demand is unlikely to dissipate throughout the forecast period.
2. Innovative CBD skincare products
Growth in the category has also been fuelled by innovative portfolio expansion. Vendors, in a bid to differentiate their products from those of competitors, have come up with improved CBD products. Such products are easy to use, have greater absorption rates and provide better results in a shorter time. Product innovation is likely to grow the segment to unprecedented levels beyond the forecast period.
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