The global CBD skin care market is predicted to reach a value of $3.48 billion USD by 2026, according to a new report from Allied Market Research.
The report which values the global skin market currently at $736.6 million USD, in 2019, estimates that the industry will grow by a CAGR of 24.8% during 2019-2026, in response to the growing awareness and potential of these products.
The research suggests that driving this growth will be the rise in preference toward sustainable skin care products, and increase in awareness and acceptance of cannabis/hemp. Growth in revenue through online sales channels are expected to usher in a number of opportunities for the key players in the industry.
The report authors also acknowledge some of the factors that may hinder growth potential including, high probabilities of product contamination and regulatory imposition on product manufacturing and marketing which may combine to curtail down the growth to some extent.
The hemp segment accounted for more than half of the global CBD skin care market revenue in 2019, and is anticipated to rule the roost during the study period. The fact that hemp seeds possess various healthy properties such as essential vitamins, minerals, flavonoids, and fatty acids has boosted the growth of the segment. Simultaneously, the marijuana segment would grow at the fastest CAGR of 25.8% till 2026.
When it comes to product type, the departmental stores segment contributed to nearly one-third of the global CBD skin care market share in 2019, and is expected to dominate throughout the forecast period. CBD skincare products have been made available by the market players in small departmental shops, and hence they are attracting a large number of customers through the same. This factor has driven the growth of the segment.
The e-commerce segment, on the other hand, would cite the fastest CAGR of 27.4% during 2019–2026. Online distribution has emerged as a key sales channel for CBS skincare market.
North America held the major share in 2019, generating nearly two-fifths of the global CBD skin care market. After the passing of the 2018 Farm Bill, hemp cultivation, manufacturing, and distribution has become legal in the U.S. which has fueled the market growth. At the same time, the region across Asia-Pacific would register the fastest CAGR of 26.7% during the estimated period. Asia-Pacific is one of the untapped CBD markets and it represents enormous market opportunities to benefit from the global trend toward the legalization of cannabis.
The report list some of the main manufacturers who currently hold a significant portion of market share, particularly in North America:
Medical Marijuana Inc.
Fab CBD Company
Kapu Maku LLC
Elixinol Global Limited