Technavio released its latest report, which states that the CBD skincare market value is set to grow by $1.64 billion, progressing at a CAGR of 33% from 2019 to 2024. The market is segmented by type (oils, CMC and MSL), source (hemp and marijuana) and geography (North America, Europe, Asia-Pacific, South America, and the Middle East and Africa).
Key highlights of the report include the CAGR of the market during the forecast period 2020-2024, detailed information on factors that will assist CBD skincare market growth during the next five years, predictions on upcoming trends and changes in consumer behavior, and more.
The skincare benefits offered by CBD are notably driving the market growth, although easy availability of counterfeit products may impede the market growth.
The CBD skincare market share growth by the hemp segment will be significant during the forecast period. The hemp plant has a unique combination of cannabinoids, terpenes, essential fatty acids and other vital nutrients, and its derived products are used for several industrial purposes. Hemp-derived skincare products are used for various health benefits, including the treatment of various types of skin disorders. Growing awareness about the benefits of hemp-derived skincare products among consumers worldwide is expected to drive the growth of this segment significantly during the forecast period.
Forty-one percent of the market’s growth will originate from North America during the forecast period. The U.S. and Canada are the key markets for the CBD skincare market in North America. Market growth in this region will be faster than the growth of the market in other regions. The growing awareness among consumers about the several skincare benefits of CBD-based products will facilitate the CBD skincare market growth in North America over the forecast period.
The skincare benefits offered by CBD is one of the key drivers supporting the CBD skincare market growth. The skin-calming and skin-normalizing properties of CBD make it ideal for sensitive skin by minimizing issues related to skin sensitivity, such as skin redness. It is also a very popular skin conditioning agent that helps in enhancing the overall appearance of the skin by making it soft and smooth. It is considered a natural remedy for treating psoriasis, a chronic autoimmune disease, where skin cells grow at an accelerated rate. Therefore, the numerous skincare benefits of CBD make it a popular ingredient in many skincare products. As a result, CBD-infused skincare products are being increasingly demanded by consumers globally. This, in turn, is a major factor that will drive the growth of the global CBD skincare market during the forecast period.
The easy availability of counterfeit products is one of the factors hindering the CBD skincare market growth. Counterfeiting has increased over the past few years, as consumers prefer low-priced products to expensive ones. The digital era makes it possible for counterfeiters to sell their products without a prior product review or inspection. Therefore, the presence of numerous counterfeit products can lead to market fragmentation, which can lead to the lack of price standardization, an uneven competitive scenario and the erosion of market share held by international vendors. Moreover, there are several countries across the world where the selling of CBD skincare products has not yet been legalized. This has led to the illegal sales of CBD skincare products in these countries where the products offered by the manufacturers do not adhere to the general standards associated with the manufacturing, labeling and selling of these products. Such factors are hindering market growth.
Technavio is a global technology research and advisory company. Its research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.