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CBD Skin Care Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global CBD skin care products market size was valued at USD 5.6 billion in 2022 and is projected to expand at a CAGR of 24.2% from 2023 to 2030. The rising consumer preference for natural and organic products is a key factor driving the market growth. The use of natural ingredients has become a trend in the personal care industry. This is providing a major boost to the market as consumers are becoming more aware of the health risks associated with synthetic and chemical-based skin care products.
CBD skin care products are gaining traction for their therapeutic and aesthetic benefits. Cannabidiol (CBD) is a natural compound derived from the cannabis plant that has a range of therapeutic and aesthetic benefits. CBD is known to have anti-inflammatory, antioxidant, and analgesic properties, all of which can be beneficial for skin health. As such, CBD is increasingly being used in skin care products such as creams, serums, and balms to treat various skin conditions, such as acne, eczema, and psoriasis. In addition, the growing demand for natural and organic skin care products has further fueled the growth of the market.
Moreover, increasing awareness about the medicinal benefits of CBD is driving the demand for CBD skincare products. Manufacturers are launching new products with the latest technologies to meet the changing needs of consumers. For instance, in October 2021, CannaCeuticals, a manufacturer of CBD skincare products, launched a new line of facial serums and creams infused with CBD oil. The company also declared that it would be launching new products every month in order to keep up with the changing needs of customers.
The growing trend of premiumization is also contributing to the growth of the market. Premiumization refers to the increasing trend of consumers willing to pay more for higher-quality products. Manufacturers are launching high-end CBD skin care products to meet the increasing demand for premium products. For instance, in April 2021, Cannuka, a manufacturer of skin care products, launched a new high-end line of CBD skin care products. The new line includes facial creams, eye creams, and serums.
Furthermore, increasing investments in research and development to develop better and safer products is expected to boost the market growth in the coming years. Moreover, the growing popularity of social media channels, such as Instagram and YouTube, is providing a platform for manufacturers to promote their products. This is expected to further boost the market growth in the coming years.
Product Insights
The CBD skin care segment held the largest market share in 2019 and is likely to expand at the fastest CAGR of 16.3% from 2020 to 2026. Increasing use of CBD-infused skin care products among consumers is expected to drive the segment growth. According to an article published by Forbes, in December 2019, the US hemp-derived CBD market is projected to reach USD 2.6 billion by 2022. Moreover, the growing popularity of CBD-infused skin care products, such as face creams, lotions, and serums, is expected to boost the market growth.
The facial care segment held the second-largest market share in 2019. Increasing adoption of facial care products, such as face creams, lotions, and serums, is driving the segment growth. According to an article published by ASEAN Biodiversity, in June 2019, facial care products accounted for the largest market share among the total skin care product sales in the Asian region. Furthermore, rising demand for CBD-infused facial care products is expected to fuel the segment growth over the forecast period.
Distribution Channel Insights
The supermarkets and hypermarkets segment is estimated to account for the largest share of the overall market in 2022. Supermarkets and hypermarkets offer a wide variety of skincare products, including CBD-based skincare products, to meet the needs of customers. In addition, these stores offer a wide range of products under one roof, making it convenient for customers to shop for a variety of items in a single visit. Moreover, customers can also compare and choose from a wide range of products as per their preferences.
The online segment is projected to expand at the highest CAGR of 14.4% during the forecast period. The increasing number of e-commerce websites and mobile applications have made it easy for customers to purchase CBD-based skincare products from the comfort of their homes. Moreover, customers can also compare different products and prices offered by various websites, which helps them to make informed decisions. In addition, various discounts and offers on the online platforms have attracted a large number of customers to purchase CBD-based skincare products online.
Type Insights
The organic segment accounted for the largest revenue share of 57.3% in the year 2022. The growing awareness among consumers about the side effects of synthetic products has increased the demand for organic products. Furthermore, the increased application of organic products in the health and wellness industry has positively influenced the growth of the segment. For instance, in June 2022, CBD American Shaman, a manufacturer of CBD products, launched a skincare line containing CBD-infused herbal ingredients such as aloe vera, green tea extract, and chamomile extract.
The synthetic segment is expected to expand at the highest CAGR of 11.6% over the forecast period. The increased focus of manufacturers on developing innovative products using synthetic ingredients is driving the demand for synthetic CBD skin care products. For instance, in April 2022, Kosmetics Naturals, a manufacturer of CBD skincare products, launched a new product range, which is infused with synthetic CBD. The new product range included a CBD-infused facial serum, body lotion, and a facial scrub.
Regional Insights
Europe is expected to dominate the global CBD skin care products market and is expected to account for the largest revenue share of over 38.2% in 2022. This is attributed to the presence of a number of players operating in this region and the early adoption of CBD skin care products by consumers in the region. For instance, in January 2021, Swiss company, Joyance Partners, launched a new CBD skincare line in the U.K. In addition, the growing demand from countries such as Germany, France, and the U.K. is also expected to drive the growth of the market in Europe.
Asia Pacific is expected to be the second-largest market and is expected to witness a lucrative growth rate over the forecast period. The increasing demand for CBD skin care products in countries such as China, India, Japan, and Australia is driving the growth of the market in this region. For instance, in December 2019, CBD cosmetics brand, Cannabliss, launched its CBD skincare line in Australia. In addition, the increasing disposable income among consumers in the region is expected to further contribute to the growth of the market.
Financial Projections
In this part of the CBD skin care products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your skin care products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a CBD skin care products business comes from the sale of products, both online and in store. Here you will find a list with a description of each of them and other possible sources of profit such as subscription services, wholesale, marketing services, and custom packaging.
Projecting Expenses
In this section, all the regular expenses related to keeping the skin care products business running will be described. The list of operating expenses includes product sourcing, packaging and labeling, shipping, marketing and advertising, website costs, rent, payroll, taxes, and other overhead expenses.
key companies & market share insights
Some of the key companies operating in the CBD skin care products market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In May 2022, Kiehl’s launched its Cannabis Sativa Seed Oil Herbal Concentrate, a hemp-based skincare product.
– In June 2022, Cannuka launched its CBD-infused lip balm.
– In July 2022, The Body Shop launched its Hemp Heavy-Duty Lip Care, a CBD-infused lip balm.
Some of the prominent players in the CBD skin care products market include:
– Kiehl’s
– Cannuka
– The Body Shop
– Sephora
– Estee Lauder Companies, Inc.
– Lush
– Kana Skincare
– Cannabliss Organic
– Cannuka
– CBD For Life
Global CBD Skin Care Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global CBD Skin Care Products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Skin Care
– Hair Care
– Body Care
– Sun Care
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Specialty Stores
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Mass
– Premium
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Major Drivers of the Global CBD Skin Care Products Market?
[A]: The global CBD skin care products market is expected to be driven by increasing consumer awareness of the therapeutic effects of CBD and its potential applications in skin care products. Furthermore, increasing acceptance of CBD-based products among consumers is expected to drive the market. In addition, rising demand for naturally derived skin care products and the presence of various product variants are expected to propel the growth of the market.
[Q]: What are the Key Strategies of Market Players?
[A]: Key strategies adopted by market players include product launches, collaborations, and mergers and acquisitions. For instance, in November 2019, CBD American Shaman, a leading U.S.based CBD skin care product supplier, announced the launch of a new line of CBD-infused skincare products.
[Q]: Who are the Key Players in the Global CBD Skin Care Products Market?
[A]: The key players operating in the global CBD skin care product market include CANNAPRESSO LLC, CBD American Shaman, Green Roads of Florida, LLC, Lord Jones, Medical Marijuana, Inc., Kannaway LLC, Sunsoil, Abacus Health Products, Inc., Elixinol Global Limited, and Endoca BV.
[Q]: What is the Market Outlook?
[A]: The global CBD skin care products market is expected to grow at a CAGR of more than 24% during the forecast period 2020-2026. Rising demand for naturally derived skin care products, increasing consumer awareness of the therapeutic effects of CBD, and the presence of various product variants are expected to drive the market.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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