The Beauty of CBD
Competing in the luxury beauty industry / Story: CBDFollow
Beauty products infused with CBD (cannabidiol) are predicted to be one of the biggest trends for 2019. According to Forbes, the US beauty retail market was valued at $56.4 billion for 2018. Last year, the Brightfield Group estimated CBD beauty products to reach $1.6 billion by 2020. Currently, skincare products have the largest share of the beauty category with 37% of the market.
Our skin is our largest organ and is equipped with an endocannabinoid system making CBD a natural agent for skincare. CBD can be found in topicals, bath bombs, lip balms, lotions, body oils, mascaras and other cosmetics. With its conditioning, anti-inflammatory and calming properties, CBD makes for a perfect ingredient in beauty products.
Mainstream cosmetics company Estee Lauder has launched Origins, a new celadon green face mask that contains cannabis sativa seed oil from hemp. Former alumni of Goop recently launched Fleur Marché, which is a website geared toward women. The site sells CBD products for skincare, menstrual pain relief, tinctures, edibles and lotions.
Lord Jones became one of the first CBD brands to launch on Sephora.com and Neiman Marcus just introduced eight CBD brands in its “trending beauty” shops in five locations. Last year also brought an exclusive offering of the CBD based beauty line “Lab to Beauty” making it the first beauty line sold in Barneys New York. However, In order for stores like Barneys New York to sell CBD products, they must undergo certain testing requirements. Brands must disclose who grew their hemp and it must be tested at less than 0.3 percent concentration of THC.
Along with proper testing, CBD brands are also having to improve their packaging. Existing luxury brands have already built brand loyalty and brand awareness. Their packaging is elevated and is displayed behind the beauty counter. The benefit of being sold in this surrounding lets their customer engage with beauty experts, try product and gives them an experience that they would not get online or in an organic foods store. With that being said it is clear that CBD independents that are vying to be in this space need to step up their branding game.
As more and more leading high-end department stores start carrying CBD beauty products, the market will continue to grow. Mainstream fashion brands have not fully committed yet, like many industries they are awaiting clearer pathways from federal regulation. However, It is just a matter of time before they too start to expand their offerings with CBD infused beauty products. For now the opportunity is there and independent CBD brands that know how to market to the high end luxury consumer can benefit.