Cannabidiol is an innovative component in the global organic beauty market. Will the new product conquer consumers in the Russian Federation as quickly as in the USA, Europe and Asia?
Cannabidiol is a natural extract of industrial hemp that is not psychotropic. In the period 2017-2019. This product, previously known only to representatives of the pharmaceutical industry and medicine, literally blew up the global Health & Beauty industry. The world market in just 4 years has grown more than 10 times, and for some countries (USA, Canada) the growth has reached 15-20 times.
The success, according to the estimates of foreign manufacturing companies, is primarily due to the impressive consumer properties of cannabidiol, including sebum-regulating, anti-inflammatory, and regenerating, which is important for anti-ance, anti-oil and pro-health cosmetics lines.
The second aspect that determines the popularity of cannabidiol is the total enthusiasm of the population of developed countries for pro-health philosophy, organics and healthy lifestyle. In addition, experts highlight the presence of some “bohemian” component of the image in cannabidiol due to its origin from cannabis, which is especially attractive for millennials.
Note that, starting in 2017, WHO recommends countries to exclude cannabidiol from the list of controlled substances and recognizes it as an effective drug for the treatment of a number of diseases, as well as a valuable component of dietary supplements and cosmetics.
Until now, however, the legal status of cannabidiol has been different for each country. In Russia, CBD extract in cosmetic products for external use is not prohibited for use, provided that there are confirming certificates of the permitted THC concentration of less than 0.1%. At the same time, the use of cannabidiol dietary supplements and pharmaceuticals is not permitted as of August 2023.
Despite the de facto legal status of cannabidiol in cosmetics, the market for products based on CBD extract in Russia as of August 2023 is still practically absent.
The volume of current consumption, partially formed by shadow products that do not have the necessary certificates, at the end of 2023 is estimated from 24.8 to 250 thousand dollars, or from 1.8 to 18 million rubles.
The current saturation of the Russian market, according to experts, in 2023 ranges from 0.1% to 1%.
The positive development of the Russian market for organic cosmetics based on CBD extract in the long term is determined by the influence of the following factors:
- Galloping growth in demand for cosmetics containing CBD in developed countries in 2016-2020 and projected intensive positive dynamics in 2023-2025.
- Rapidly growing demand for CBD-based skin care products in Eastern Europe, where consumer behavior is largely similar to that in Russia.
- Popularization of a healthy lifestyle and an environmentally friendly lifestyle among citizens of the Russian Federation.
- Intensive growth of the market for organic cosmetics and cosmetics based on hemp seed oil in Russia.
- Growth in the number of consumers in the Russian Federation informed about the beauty properties of CBD.
According to experts, by 2025 the volume of the Russian cosmetics market based on CBD extract will be about 1.8 billion rubles, by 2035 its volume will exceed 15.4 billion rubles.
Thus, in the future until 2035, the capacity of the Russian market for cosmetics based on CBD extract will increase in monetary terms by 8.5 times. The development of demand for CBD in Russia, according to Smart Consult, will follow the trends in the markets of Eastern Europe, especially Poland.
