Insight Report 6 minutes Premium

Beauty Insights, Part 4: Cannabis and Beauty—The High Science of Health and Wellness

Executive Summary

  • A variety of companies are increasingly using the cannabis plant in beauty brand formulations, as well as in health and wellness products.
  • In September 2018, Sephora launched its “High Beauty” brand, with two products, High Expectations, a cannabis face oil and High Five, a cannabis facial moisturizer.
  • The companies claim these ingredients ease a variety of ailments, such as inflammation, acne, rosacea, dry skin and eczema. Athletes use CBD oil and hemp balm to reduce inflammation.
  • Cannabis startup investment funding more than doubled, from $278 million in 2016 to $598 million in 2017. The number of cannabis deals increased 60%, from 119 deals in 2016 to 191 deals in 2017, according to CB Insights.
  • Beauty products span multiple categories and now cross into health and wellness as consumers turn to beauty products that offer perceived health and wellness benefits.
  • The global market for legal cannabis products is expected to grow at a 21.1% CAGR, according to Ameri Research, from an estimated $20.1 billion in 2018 to $63.5 billion in 2024.
  • Customers pay premium prices for cannabis beauty, health and wellness products.
  • With cannabis already legal in 10 US states, and several more states as well as entire countries (such as Canada) planning to legalize, there are opportunities for health, wellness and beauty brands to expand product formulations to include THC, which may further expand the retail market.

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