Are CBD-infused cosmetics going to be the next big trend in the industry? It certainly looks that way across the pond.
A new report has found the sector is expected to be worth $2.22bn by 2024 with over 40% of that in North in America alone.
Analysts at Technavio, a US-based market analysis company, estimate the market will sustain a compound annual growth rate of almost 25% over the next three years.
While Europe is expected to lag behind North and South America, the report identified both France and Germany as potential growth markets.
According to CBD retailer Alphagreen, cosmetic products containing the cannabinoid are exempt from the ongoing novel food process being overseen by the Food Standards Agency as they are not consumed.
However, the market does still have to contend with a raft of regulation covering the wider hemp industry.
Shomi Malik, external affairs director at the Association for the Cannabinoid Industry, said the industry could boom in Europe – but it must change in order to do so.
He told Cannabis Wealth: “The future looks bright for the cannabinoid cosmetic sector just like it does for the rest of the industry.
“We’re really pleased about recent regulatory changes and they could benefit cosmetic businesses, especially on the EU’s recognition of CBG which potentially could be more effective in a topical application.
“But ultimately the real winners in this area going forward are going to be the businesses who invest in collecting data and carry out studies into technical aspects like absorption rates.
“Cosmetics is an underserved part of the market right now and the industry is suffering from a lack of expertise in terms of manufacturing.
“That’s what the industry needs to invest in going forward rather than relying on aspirational brands making bold claims – it needs more data.”