Beauty and personal care is a lucrative market for cannabis-derived products, with North America at the centre of booming demand. Its central narrative of functional wellness makes it a long-lasting trend. However, significant challenges of regulations, marketing, safety, market entry timing, and consumer education are intertwined and may hinder growth. The segment will become more sophisticated as it gets transformed by hemp, an emerging body of research, and beauty-adjacent industries.
Beauty and personal care is a lucrative market for cannabis-derived products, with North America at the centre of a boom for cannabis beauty and personal care. Although there are some developed markets, cannabis-derived beauty is still new in much of Western and Eastern Europe, and Latin America while potential exists in Asia Pacific and Australasia.
Cannabis-derived beauty has the potential to be a long-lasting trend. With health and wellness and naturals at the forefront of growth, brands are positioning products as a cure-all “super ingredient”, emphasising potency, high protein, medicinal value and functional wellness. Its ties to prevention/treatment of certain issues as the crux of its appeal.
The biggest opportunity is in skin care, followed by hair care and bath and shower, particularly among therapeutic and dermocosmetic spaces that respond well to current holistic and health-aligned beauty trends of repair, protection and therapy.
The segment’s greatest challenges are regulations, marketing, safety, timing, and consumer education. If challenges are overcome, cannabis beauty can have broad consumer appeal for scientific, natural, clean beauty, mass, and premium segments.
Cannabis beauty is in the early stages of disruption and will be transformed by hemp, other emerging cannabinoids, and influence from other CPG industries and beauty-adjacent spaces, such as spas. Its longevity hinges on two industry approaches, either using lack of/unclear regulation as a way to gain market share or contribute to solving the challenges that hinder growth of cannabis-derived beauty.
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