Jefferies expects CBD beauty market to reach US$25 billion in 10 years

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Jefferies expects CBD beauty market to reach US$25 billion in 10 years via TheGrowthOp

After initiating coverage of the cannabis industry Feb. 25, Jefferies analysts have followed up with their take on the CBD segment, particularly CBD beauty products. The research firm estimates that the CBD category could reach US$25 billion globally in the next decade and will amass 15 percent of the total skincare market.

Retailers are also developing multi-brand assortments of CBD products to test consumers’ response. Analysts expect that CBD products will likely replace existing, non-CBD products and, therefore, they won’t significantly enlarge the market size. Some examples of products entering the space: the Origins Hemp Mask from Estee Lauder Companies Inc EL 0.03 percent, Murad’s Hemp Serum from Unilever NV ADRUN 1.3 percent, and Keihl’s Cannabis Serum from L’oreal CO/ADR LRLCY 1.27 percent.

In addition to infusing CBD into existing labels, companies could also further augment their offerings through mergers and acquisitions.Improving market pathwayClaims regarding CBD beauty products will likely mirror those for SPF products, Jefferies said: the claims will be validated, but not necessarily based on scientific evidence or clinical trials.

 

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