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Новости/Аналитика

Hemp beauty industry in the world and Ukraine

23.01.2020

Specialists of the HempConsulting information and analytical platform , together with a number of companies working in the domestic as well as in the global cosmetic market , initiated the study “ Hemp beauty industry in the world and Ukraine (from the use of grain derivatives, young shoots and roots to cosmetic formulations to "Green mass" cannabisa ").

Cannabinoid cosmetics radically changes the rules of the game in the global beauty industry, becoming the most destructive force of stagnation in the industry that arose in the 21st century. The rapidly growing demand for cosmetic products , the recipe of which includes drug-free cannabinoids as ingredients, according to the forecasts of individual market analysts , could reach a billion US dollars in the next five years (based on recently published materials from one of the consulting companies specializing in researching the global hemp market ) .

Regulatory framework governing the use of cannabinoids in cosmetic formulations

As in other branches of modern hemp business , the regulatory support of the activities of business entities in this market depends on the legislation of each individual state . As a good example, one can demonstrate the rapid growth of the possibilities for the use of cannabinoids in the formulation of cosmetic preparations by improving the regulatory framework of Canada . This refers to the amendment of the law “On Cannabis”, which regulates the possibility of using cannabinoids in the formulations of food products , drinks, and also cosmetic preparations . In turn, the Office for sanitary inspection of the quality of foodstuffs and medicines (Food and Drug Administration, FDA) US examines closely the international as well as domestic market cannabinoid products derived from hemp , in order to determine whether there is a need to establish rules and regulations governing their use in food or cosmetic preparations , or similar products should be banned on the market . In both of the aforementioned states, manufacturers are obliged to avoid mentioning the benefits of cannabinoids during advertising campaigns or on packaging of manufactured products .

European Union officials consider drug-free cannabinoids (including cannabidiol ) acceptable for use in cosmetic preparations if the extracts were isolated from hemp seeds and leaves, and not from plant flowers. There are no restrictions on the use of technical hemp extracts in cosmetic products, since it is believed that the extraction of cannabinoids from malonarcotic hemp initially implies a socially safe, extremely low amount of tetrahydrocannabinol (THC) with a small amount of cannabidiol (CBD) or other drug-free cannabinoids . 

The study focuses on the fact that there is a fundamental difference between hemp and cannabinoid oil obtained from plant materials . It is the correctness of the use of the names of derivatives from various parts of hemp that is the subject of the fiercest conflict in the international cosmetic market . Certain cosmetic companies position their products in such a way that cannabinoid oil is included in the formulation of manufactured cosmetic preparations , although in fact the headings are made either using hemp oil or generally using synthetic cannabinoids. In fact, the above companies take advantage of the hype in the market in order to mislead customers by positioning their products as those that have significant therapeutic properties . In fact, in such situations, this is just a marketing move that has nothing to do with the therapeutic properties of the plant, invented in order to significantly increase sales . 

Because at the moment on the world market, there is no generally accepted standards for quality monitoring and therapeutic properties of cosmetic products , saturated beznarkoticheskimi cannabinoids , at the moment the company involved in the use of "brand of the plant" is not required to disclose the recipe produced cosmetic products , thus hiding the actual the presence of drug-free cannabinoids in their products .

Startups are developing the cannabinoid cosmetics sector

Major cosmetic brands are wary of cosmetics , which include drug-free cannabinoids , including CBD. Industrial giants, such as Estée Lauder and L'Oréal, experimented with cosmetic products that included hemp oil , but the difficult legal situation with cannabinoid products dampened the interest of multinational cosmetic companies in the production of cosmetic lines based on non-drug cannabinoids, primarily Cannabidiol lineup. As a result, while the small startups dominate on the market cannabinoid cosmetics . 

Currently, skin care products have become topical tools in the cannabinoid cosmetics market . It was they who became the basis of the hemp cosmetic market thanks to the innovations introduced and the specialization of products for use on the skin of the face , arms , legs , etc. Subsequently, the range of cosmetic preparations was expanded to include cannabinoid hair care products , tanning products, soap, as well as makeup products with the addition of various cannabinoid ingredients.

Consulting firm that prepared the study through interviews with leading experts in the beauty industry , and conducted an analysis of available materials is determined that the global market of hemp products for skin care products in 2018 amounted to about $ 710 million. In the opinion of foreign experts is expected that by 2024 the volume of sales only cannabinoid cosmetics will be about $ 959 million. The increase in sales will occur due to large retail chains , such as CVS, Walgreens or large pharmacies, such as Kroger, which are in close proximity the next few years will enter the market and make these products more accessible to the general consumer.

Depending on future changes in the current legislation , large cosmetic brands will begin to participate in the cannabinoid cosmetics market through the creation of joint ventures or the acquisition of the most successful startups . Outside the cosmetic market, transactions of this kind are already being concluded. For example, Canopy Growth and CannaGlobal acquired well-established cosmetic brands in the market with the aim of launching new lines of CBD cosmetics based on them .

The presence of an effective regulatory framework will become the basis for the further development of the cannabinoid cosmetics market

For companies seeking to participate in the beauty industry , the basis of which is cannabinoid cosmetics , issues of regulatory support for their activities are vital. The key factor is the agility of state structures, which either allow law enforcement agencies to destroy this type of business , or create conditions under which this kind of activity can become highly profitable even in a rather tough world beauty market .   

Commentary by the Association of Ukrainian Technical Hemp

Cannabinoid cosmetics has already outgrown the “panties” of sales in small boutiques, as well as in natural cosmetics stores and in countries where the regulatory framework providing this market has been created , has come to shopping centers with special product sections using drug-free cannabinoids, beauty studios and massage salons, pharmacy chains, luxury stores (Barneys and Neiman Marcus), producing their own brands of products , the recipe of which includes drug-free cannabinoids. Over time, the hype surrounding cannabinoid cosmetics will decline and brands will remain on the market , for which consumers will vote with money from their own pockets. 

That is why such analytical reviews are interesting not only for hemp / cannabinoid cosmetics manufacturers , but also for consumers in order to understand market trends or to figure out which products really have significant therapeutic properties and which products on the market are made using synthetic cannabinoids and despite solid advertising budgets are not for sale, as they negatively affect the human body. In addition, it is necessary to provide relevant analytical information to government agencies so that they can regulate the cannabinoid cosmetics market by creating a platform where speculative brands of poor quality cannot be present, and companies that can introduce the latest technologies, as well as improve the quality of cosmetic products manufactured based on the therapeutic properties of hemp plant .

Considering the above, as well as 4 years of experience in the hemp cosmetics market of Ukraine , experts of the HempConsulting information and analytical platform , together with a number of companies operating in the domestic as well as in the global cosmetic market , initiated the study “ Hemp beauty industry in the world and Ukraine (from the use of grain derivatives, young shoots and root in cosmetic formulations to “cannabisa green mass ”).

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