13/10/2024

The enormous potential of CBD-based wellness products

In recent years, cannabidiol (CBD) has emerged as a revolutionary ingredient in the beauty industry worldwide. Functioning as a non-psychoactive compound derived from the cannabis plant, CBD is known for its potential therapeutic properties, including anti-inflammatory and antioxidant effects. It is no surprise that this has led to the rise in popularity of CBD-infused beauty and skincare products. In Brazil, notably one of the world’s largest consumer markets for cosmetics, CBD beauty products represent an exciting opportunity for companies looking to innovate and expand their product lines, as our industry is renowned for its quality, both domestically and internationally.

Understanding the current consumer market in Brazil

Brazil’s beauty and personal care market is already the 3rd largest in the world¹, and we are also the third largest globally in the world in terms of product launches, behind only China (2nd) and the USA (1st).² Brazilian consumers are always on the lookout for trends and new products, and in addition to this, there is also a strong demand for beauty products that are more natural and sustainable, perfectly aligned with the benefits that CBD offers. As consumers become more and better informed about the potential benefits of CBD, there is a greater curiosity around these products and, consequently, a positive acceptance that leads to the emergence of a demand for CBD-infused beauty products. In other words, there will be no shortage of opportunities for those who want to invest in the combination of cannabis and well-being in the country.

Main benefits of CBD applied to well-being products

The possibilities for applications in skin care are immense. All of this without any chance of “getting high”, since the substance from hemp has, at most, 0.3% tetrahydrocannabinol (THC), the element responsible for the psychoactive effect in other species of cannabis. The main benefits of CBD applied to beauty products are:

• Anti-inflammatory properties: CBD is known for its ability to reduce inflammation and soothe irritated skin. This makes it ideal for products that aim to alleviate acne, eczema and rosacea, concerns reported by Brazilian consumers;

• Antioxidant effects: CBD is rich in antioxidants, which help protect the skin from environmental damage and premature aging (especially relevant for the Brazilian public, where high exposure to UV rays can accelerate skin aging);

• Moisturizing and nourishing: CBD has moisturizing properties that can help maintain skin hydration, making it suitable for a wide range of skin care products, from creams to serums, among other products;

• Balancing oil production: For people with oily or acne-prone skin, CBD can help regulate sebum production, leading to a more even and balanced looking skin.

Why should Brazilian companies invest in CBD-based beauty products?

Imagine the role that national companies could play in the production of CBD-based cosmetics. The possibilities are limitless, especially with the plant being produced in the country. This industry could generate new business, revenue and jobs in Brazil on a large scale. Firstly, by producing for export right away, in addition to also working to build a more favorable business environment domestically. Some of the most relevant factors are:

• Increased consumer demand: As awareness of the benefits of CBD grows, so does consumer interest. Companies that invest in CBD-based beauty products can take advantage of this growing market segment, serving consumers looking for natural alternatives;

• Innovation and differentiation: The introduction of CBD-infused products allows companies to differentiate themselves from their competitors. By offering unique formulations and solutions, brands can position themselves as pioneers in the beauty industry (including opportunities for both industry giants and small businesses that produce in an artisanal way);

• Alignment with global trends: The global shift towards more sustainable and natural beauty products is undeniable. By incorporating CBD into their products, Brazilian companies can align with international trends and appeal to a wider audience;

• Regulatory advancements: While the regulatory environment surrounding CBD in Brazil is still evolving, there is strong support for updating legislation on the subject. Companies that are more aware of regulatory developments early on can establish themselves as market leaders;

• Potential for market expansion: As the CBD beauty trend gains momentum, companies that invest now can leverage their experience to expand into other markets – especially within Latin America – where similar trends are emerging.

Conclusion

The Brazilian beauty market is ripe for innovation, and CBD presents an unprecedented opportunity for companies willing to embrace this trend. By investing in CBD beauty products, brands can not only meet the demands of already educated consumers, but also reach those who are not yet aware of its potential. As the global market continues to evolve, those who take proactive steps to explore the benefits of CBD on home soil are likely to reap significant rewards.

As we continue to witness the transformative power of CBD in beauty, now is the time for our companies in the industry to begin investing in developing quality products – starting with high standards in research and processing, as well as the proper development of the market’s production ecosystem – to pave the way for offering Brazilian consumers the sustainable, natural and effective solutions they are seeking.

1. Euromonitor, 2023. ↩︎
2. Mintel, 2023. ↩︎

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