Booming Demand for CBD Creating a $25 Billion Market Opportunity
CBD has quickly become one of the most industry-disruptive forces.
Multi-billion-dollar industries are already being uprooted by cannabis, including beverages, pharmaceuticals, tobacco, and the health and wellness industry, as the cultural renaissance just gets underway. All thanks to growing acceptance following Canada’s October 2018 legalization, broad approval for its recreational and medicinal use throughout the U.S., and corporate interest.
One of the strongest areas of growth can also be found in CBD beauty products.
In fact, analysts at Jefferies say the CBD beauty market alone could be worth $25 billion over the next decade, and could account for up to 15% of the skincare market.
With sizable consumer demand, CBD is quickly emerging as one of the most popular wellness ingredients in skincare products. In fact, demand is becoming so strong analysts at Greenwave Advisors estimating $3 billion global CBD market value by 2021. Analysts at Transparency Market Research say the market could double in value to $2.5 billion by 2026.
“The bulk of this growth is coming from large retailers like CVS, Walgreens, and Kroger entering the market and providing that availability to consumers,” says Brightfield Managing Director, Bethany Gomez.
So, it’s no wonder major retailers have been quick to jump on the CBD sales bandwagon.
To date, Neiman Marcus, Vitamin Shopper, Kroger’s, Barney’s, DSW, CVS, and Walgreen’s will all carry CBD products. Most recently, American Eagle Outfitters announced it would sell CBD-infused personal care products in 500 stores and online starting in October 2019.
Now, even Sephora consumers are able to buy products containing CBD in their stores.
The beauty chain began selling the Lord Jones’ high CBD formula body lotion online in 2018. Now, that product is being sold in 170 Sephora locations. “At Sephora, we consistently strive to bring first-to-market product trends, innovation and experiences of the highest quality to our clients, and the growth of our CBD category is one such example of this,” Cindy Deily, Sephora’s vice president of skincare merchandising said, as quote by GreenState.
Better yet, Cronos Group just announced that it’s investing $300 million in the U.S. hemp market by acquiring Redwood Holding Group – the company behind Lord Jones. The deal gives Cronos a good stake in the fast-growing U.S. CBD market, where consumers are clamoring for beauty products, foods and oils containing CBD.
However, it appears this is just the start of an incredible CBD retail boom.