Non-medicinal CBD has been a thing for a while now â and itâs set to take over the beauty industry.
Jefferies analyst Stephanie Wissink thinks that beauty products containing cannabis compound cannabidiolÂ â or CBDÂ â will generate up to $25 billion (USD) in revenue around the world over the next decade. That means a total of 15% of the $167 billion (USD) skincare market will be monopolized by cannabis-infused cosmetic products.
âConsumersâ interest in wellness, natural ingredients, medicinal benefits and the legalization of marijuana in several states/countries have catalyzed interest in CBD beauty,â Wissink predicted earlier this week.
While it is psychoactive, CBD is a non-intoxicating, cannabis-derived phytocannabinoid that doesnât result in a âhighâ like tetrahydrocannabinol (THC), one of its more notorious counterparts.
CBD products are already flooding the market (with varying legality), with items like food, beverages, topicals, pet treats and supplements seemingly turning up on every shelf, and major retailers such as Sephora jumping on the bandwagon.
CBDâs therapeutic benefits are touted as including anti-inflammatory, mood-enhancing, and anxiety-reducing properties.
Wissink believes that federal cannabis legalization in Canada and American legislation such as the Farm Bill have played a big part in CBDâs ever-expanding popularity.
âFrom recent discussions with numerous CBD beauty brands, the pathway to market is improving (quality supply, consumer awareness/education/acceptance, retailer support),â said Wissink.
âAs with prior themes, as demand growth and TAM are established, a raft of competition is likely to enter the market. But early evidence suggests a more sustainable trend is forming.â
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