Beauty connoisseurs may now be on the lookout for a new ingredient in their products: cannabidiol (CBD).
The CBD market has been steadily developing, with several of the big players in the industry — like Canopy Growth (NYSE:CGC,TSX:WEED), Aurora Cannabis (NYSE:ACB,TSX:ACB) and Aphria (NYSE:APHA,TSX:APHA) — developing new CBD products to add to their portfolios.
Now, more Canadian cannabis companies have been moving to create CBD-infused skincare, cosmetics and topical products for commercial sale.
On Wednesday (July 17), AgraFlora Organics (CSE:AGRA,OTC Pink:PUFXF) announced that its personal care line, Whole Hemp Health, would be distributed throughout the continental US. It is also now being sold in over 20 brick and mortar locations across Canada. With the anticipated purchase orders in Q3, the company expects the product line to sit on shelves in 100 retail locations.
The Vancouver-based cannabis company will be selling its products through its wholly-owned subsidiary, Canutra Naturals. Canutra will be equipped with cannabis from AgraFlora’s facility in Kent County, New Brunswick.
In the press release, Brandon Boddy, chairman and CEO of AgraFlora, said that Canutra’s diverse product line, “is situated at the nexus of the US$130 billion global cosmetics/skin care market, and the burgeoning North American cannabinoid market.”
Products in the Whole Hemp Health line contain 100 percent organic Canadian hemp-seed oil, according to the press release, and the line will include items like body lotions, face serums and hand soaps.
AgraFlora will be working with Covault Technologies, a digital marketing firm, to increase its presence in the online retail space.
Alongside the online marketplace, physical retail outlets are also being targeted for CBD-infused cosmetics.
Breaking into the cosmetics industry is one of the latest trends for CBD producers. A recent report from cannabis research firm BDS Analytics and Arcview Market Research projected that CBD sales in the US will surpass US$20 billion by 2024, making it an attractive space for both American and Canadian cannabis companies. The rise in the US CBD market has been attributed to the passing of the Agriculture Act of 2018 — the Farm Bill — in December 2018, which lifted the prohibition on hemp plants.
Earlier this month, Green Growth Brands (CSE:GGB,OTCQB:GGBXF) announced that it received a purchase order from American Eagle Outfitters (NYSE:AEO) to sell its hemp-derived CBD personal care products, including lotions and muscle balms, in nearly 500 American Eagle stores and online.
Green Growth also announced a partnership with another well-known American retailer, Abercrombie & Fitch (NYSE:ANF), in June. After trying out Green Growth’s Seventh Sense Botanical Therapy products, the clothing retailer moved to carry the products in over 160 stores.
Aphria (NYSE:APHA,TSX:APHA), another Canadian cannabis company, also threw its hat into the cosmetics ring in April with the introduction of its personal care line into the German market. CannRelief is Aphria’s first CBD-based cosmetics line and will be sold through the company’s German subsidiary, Aphria Deutschland.
With cannabis companies moving into cosmetics, the CBD personal care industry will be an interesting space to watch as it continues to grow alongside interest in CBD consumer products.
Want more details? Check out these articles for more INNdepth coverage.
- A CBD Investment Guide
- Investor Guide to Canadian Cannabis Extraction Stocks
- Cannabis Extraction Execs Share Metrics for the Sector
Want an overview of investing in cannabis stocks? Check Investing in the Cannabis Industry
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Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Green Growth Brands is a client of the Investing News Network. This article is not paid-for content.