The CBD skincare market is expected to hit $3.4 billion globally by 2026, with a compound annual growth rate (CAGR) of 24.8% during the forecast period, according to a report from Allied Market Research. For comparison, the market was valued at just $633.6 million in 2018.

Growth will likely be attributed to the rapid rise in consumer knowledge toward CBD-infused products, as well as overall product availability.

The global CBD oil segment specifically was valued at $219 million in 2018 and is anticipated to reach $1.13 billion by 2026, with a CAGR of 24% during this period.

“Legalization of cannabis and cannabis derivatives including cannabidiol (CBD) and hemp oil have increased the popularity of these ingredients among wellness and personal care products industry,” the report states. “Consumers are looking for CBD-infused products with natural active ingredients over other chemical based cosmetics. As a result, the cosmetics and personal care industries are expected to witness significant growth in cosmetic product infused with CBD and hemp oil.”

North America is expected to dominate the CBD skincare market share, with a CAGR of 24.3%.

Specifically, the departmental stores distribution segment is expected to dominate the global CBD skincare market analysis, with a CAGR of 23.5%. And the e-commerce segment is estimated to grow at a CAGR of 27.4% during the forecast period. Retailers, specifically small- and mid-sized convenience retailers, will have to work hard to compete with online and specialty store sales.