Can you enter the market with your own CBD skincare brand? The answer is Yes. This market has yet to peak and is showing steady growth since the legalization of cannabis. In 2021 the market was valued at USD 526.09 million.
Industry reporting suggests this market will reach USD 1.7 billion by 2025. To say there is room to enter this market with your own brand is an understatement.
At this time the North American market has 45% of the market share and is showing the fastest growth so far.
So why has CBD skincare become such a popular purchase you ask? Well CBD (Cannabidiol) oil has natural antioxidants and anti inflammatory benefits that relaxes the body and mind.
From eczema to insomnia, even those suffering from arthritis, psoriasis and acne; all these ailments can be treated with CBD.
It has incredible natural healing properties with a crossover appeal to vegans who are already loyal to cruelty-free plant based skincare and beauty brands. It also appeals to both men and women making it gender neutral.
Let’s get this straight, this isn’t a trend. To suggest this means it’s temporary like most trends. This is a lifestyle choice consumers are making to improve their well being by purchasing skincare and beauty that does what it says.
The consumer is seeking less junk in their products and more holistic ingredients. Consumers have become quite savvy when it comes to their skincare choices.
Cannabis has a long history of medicinal uses but it’s mostly known for its stereotypical stoner culture. Through legalization it has seen many iterations that include the beauty industry.
Luxury by definition has heritage and legacy through consistency of a family. Focus on storytelling and brand building is key to a company’s success.
1. The Tide is Rising CBD Skincare
Small skincare brands are attracting consumers by offering quality products in limited supply. For example launching into the market with one-three product ranges is more lucrative than a large product offering.
Two in one products that perform double duty are extremely consumer friendly by definition. Just one product to start, and build upon that great product is an introductory offering and way to gain a loyal following.
I liken this to Juicy Couture’s story. When they first entered the market, they only sold velour tracksuits. Today they offer a wide range in the fashion, beauty, and lifestyle market.
Skincare is an emotional experience and it can make the consumer forget about the price through its scent, packaging and heritage. Luxury by definition has heritage and legacy through consistency of a family. So building your own legacy CBD skincare brand should have these attributes
Focus on storytelling and brand building is key to a company’s success. Values and vision play a large part in the story telling of every brand that helps to connect with your ideal consumers changing values and priorities.
What is your story and how do you define it? You can grab my free brand style guide here to get started.
How can you start your own CBD Skincare line today? Starting with the brand’s identity is key. What is the heritage? Who is your target audience? Which market do you want to be in? (Hint: aim for affordable luxury). The markeup on skinare and cosmetics is 300%. At least it was when I worked in the industry.
What do you want to offer? Are you going to offer a full product range or a small capsule collection first? (Hint: capsule collections give a feeling of immediate exclusivity).
Have you worked out your budget and revenue projections for the next 2-5 years?
You must start at the beginning and work out all these factors that are part of your branding.
When are you launching? Give a date and stick to it.
2. Statistical Market Growth
The market for CBD-infused skincare products is seeing rapid growth fueled by these factors:
Consumer Demand: Consumers are seeking out cleaner skincare solutions that not only nourishes the soul but eliminates harmful ingredients that irritate the skin. They are paying attention and reading labels to see if it aligns with their lifestyle driving the demand for CBD-infused formulas.
Government Regulatory Changes: With the deregulation of cannabis the use of CBD beauty products have influenced a more favourable environment for product development and market expansion.
Diversified Products: A wide range of CBD skincare products including serums, creams, cleansers and masks has influenced market growth by catering to consumers’ diverse needs.
3. The Benefits of Starting Small
“According to industry insights the CBD skincare market has seen a compound annual growth rate (CAGR) of over 30% in recent years, giving this market a lucrative green light for entrepreneurs to enter this space.”
– thinkmagstudio
Launching a small capsule collection offers many advantages;
Budget-Friendly: Starting with a small offering gives entrepreneurs the opportunity to test the market with a minimal investment reducing the risk of a financial loss.
Brand Identity: Establishing a small brand focused on developing a quality product and highly identifiable branding allows for the consumer to recognise your brand whilst creating loyalty.
Flexible Innovation: Smaller brands have the flexibility to adapt through experimentation allowing a product to evolve through consumer demand more quickly than a larger established brand.
Niche Market: Finding a sweet spot to target is the golden ticket. Concentrating on a particular skin concern, or an underserved and growing demographic, smaller brands can cement a unique position in the beauty industry.
4. Expanding Gradually to Sustain Growth
Once a smaller CBD skincare brand has gained some traction in the marketplace, gradually expanding can offer a strategic approach to sustaining growth. This is beneficial in several ways;
Scale Steadily: Slow and steady growth allows a brand’s operations and product offerings a chance to control the trajectory and avoid sudden pitfalls that affect the bottom line.
Consumer Loyalty: Building a loyal customer base through offering a small collection lends to its exclusivity. A satisfied customer is more likely to support a small batch brand’s growth.
Controlling Quality: Focus on maintaining quality over quantity will encourage customer satisfaction during the expansion phase. Upholding a brand’s reputation is necessary for long-term success.
Adapting to the Market: Expanding gradually to the consumers needs and competition will ensure financial stability in the long run.
Epilogue
Overall the CBD skincare market presents a positive opportunity for entrepreneurs to enter the beauty and wellness industry. Starting small with a premium product offering and gradual expansion is the way to go for small brands that want to capitalize on the growth potential of this market whilst building and sustaining a successful skincare line. Ready to start your own affordable luxury CBD skincare line? Check out my semi-custom brand suite for CBD skincare, it’s definitely a vibe.
