• 2021-04-08
  • 阅读量:1592
  • 来源|CBO
  • 作者|Li Jianzi

Cannabidiol(CBD) skincareboom has been officially paused by the national regulations.

On March 26th NIFDC issued the Notice of the NIFDC on Public Opinions on Revising Prohibited Components of Cosmetics (the Notice).


According to the Notice and there quirements of the Chinese anti-drug management policies, raw materials such as cannabis sativa kernels, cannabis sativa seed oil, cannabis sativa leaf extract and cannabidiol are proposed to be listed as banned components of cosmetics, for which the public opinions are sought.


One raw material of popular CBD skincare products in recent years is cannabidiol which is listed as a banned component.

Will cannabis skincare products be done?
 

01

The Mysterious CBD


Hemp and cannabis are two synonymous terms, and the difference between them is their THC content.

Unlike the narcotic cannabis, the hemp market has always been legal. Tetrahydrocannabinol (THC) has the risk of causing hallucinations and addiction. At present, the application of cannabis components in industry is mainly cannabidiol (CBD).

Industrial hemp refers to a type of cannabis with tetrahydrocannabinol (THC) content less than 0.3%. Another effective component of cannabis is cannabidiol (CBD). As a compound naturally existing in flowers of cannabis, CBD is a safe and non-addictive substance, and one of more than one hundred varieties of the "phytocannabinoids".



CBD is rich in a variety of bioactive components. Besides phytocannabinoids, it also contains a large number of terpenoids, polysaccharides and phenols, which have strong anti-inflammatory and antioxidant properties.

In the past two years industrial hempextracts including cannabidiol (CBD) have attracted widespread attention in the cosmetic field because of their remarkable skincare efficacy, and have been popular among more and more brands and European and American consumers.

The main function of CBD is anti-inflammatory effect and anti-oxidation to prevent aging, so it can treat skin problems related to inflammation, such as acne, atopic dermatitis, eczema, and prevent aging caused by free radical oxidation. However, it is worth noting that at present, these studies are only cell experiments in vitro, and there is no real effective human experiment.


02

Booming Hemp Skincare Market


In 2015 NAPA issued the Catalogue of Usable Cosmetic Raw Materials, which included "hemp leaf extract", legalizing its application in cosmetics. Industrial hemp extract has a wide development prospect in the field of cosmetics.

According to Euromonitor International's data, the global legal market for hempin 2018 is about 12 billion USD (cosmetics are only one part of it); by 2025, the market size of legal hemp products will reach 166 billion US dollars, while the demand for CBD will increase, and the growth rate is expected to approach 80% in the next two years.

In recent years, with the increase of "ingredients focused consumers", the market of functional skincare has been expanding, and the hemp skincare with CBD as the main core and selling pointhas come to China. According to statistics, in 2020 in the record filings of products with hemp ingredients, there was an increase of 1783 new records, which was four times that of 2019.



In skincare products CBD is widely used and brands such as Origins under Estee Lauder, Avon and the Body Shop have already launched CBD products. In China, Man Ting, Zhi Mei Cun, One Leaf, HARUKI and other brands have launched products with hemp ingredients.

At the same time, the CBD market attracts the inflows of capital, which gives birth to brands such as CANNA FEVER, Simpcare, etc.

According to public data, CBD skincare brand Simpcare has obtained 6 rounds of financing in 18 months, of which the financing amount in January was as high as tens of millions of US dollars. In December of last year CANNA FEVER, a hemp skincare brand, completed strategic financing amounting to tens of millions of RMB, and the brand valuation after the financing exceeded RMB 100 million. Earlier in 2019 INBRIZ CBD, which mainly developed CBD skincare products, completed a round of financing worth RMB 10 million.

03

What Is The Future of CBD Skincare Business?


It is worth mentioning that as early as February of this year, Quanzhou Customs seized three bottles of essential oils containing phytocannabinoids in an inbound express mail, which were identified by professional institutions ascontaining THC (tetrahydrocannabinol). After the news broke, a number of industry insiders expressed their opinions that the CBD skincare market may be subject to stricter supervision by the authorities. Now it seems that it was an early warning for the ban.

What is the indication to the CBD market when the national policy is suddenly introduced? Where should this capital and these brands that have entered the market go?



Our CBO reporters promptly contacted a leader of a new CBD skincare brand. He said: "This notice is issued too suddenly!"

He told reporters that there was no warning sign before, and their brand and investors had no special plan responding to this. "What we can only do is to wait for the regulation details stipulated in the next step. At present we have nothing to do." As to whether the brand's business core will be changed in the future, the leader said that it was uncertain.

As of press time, another well-known new local CBD skincare brand had made no comment for this Notice.

A leader of an upstream enterprise said that at present the domestic hemp market is not mature in terms of education or production mechanism, and “It might be agood thing to curb losses right now.”.

"First of all, the hemp raw materials is under extremely strict regulation. All hemp raw materials are subject to supervision by the anti-drug department of the public security, and the license certificate is required for the transportation of hemp CBD, which undoubtedly increases the transportation cost of raw materials. The enforcement of high-intensity supervision is difficult to execute in small and medium-sized cosmetics enterprises. "

He also thinks that the costs for transportation of CBD and the cost of the extraction of raw materials are extremely high. In addition, CBD as an oil-soluble substance is easy to change color after meeting water and light.  Its further treatment thus will undoubtedly increase the cost, which will increase the cost of enterprises and hinder the advancement of the whole market.

"The most important thing is that there is no definite academic study on what the effect of CBD skincare products have on human skin.".

推荐阅读

0