The cosmetics industry is massive, and just like big pharma is faces an array of problems, one of which includes chemicals that make someone look good now, but can be harmful in the long run. Something natural like cannabis, namely CBD, can help the industry create safer products that wont cause long term skin damage. One company capitlizing on this is Yield Growth Corp. (BOSS), and their chart has gone ballistic in the last couple months.
Yield Growth is working to develop, promote, and sell health, wellness, and cosmetic range of products under their brand Urban Juve, which is wholly-owned by their subsidiary company, Urban Juve Provisions Inc.
Cannabis beauty has become so trendy that Wall Street analysts have begun treating it as a stand alone category.
As beauty products laced with CBD, a non-psychoactive compound found in marijuana and hemp, continue to find their way onto the shelves of retailers such as Sephora, Barneys and Neiman Marcus, analysts at Piper Jaffray are seeing further expansion in this”beauty and the bong” sector. The tendency could help boost the overall CBD market, which Piper pegs at worth $50 billion to $100 billion on day.
“This week at Sephorawe noticed that a curated department store for hemp-oriented products featuring brands that have dipped their toe into this area,” Erinn Murphy, Piper Jaffray’s senior research analyst, said in a note on Wednesday. “We have seen a high degree of interest in cannabis beauty from retailers within the past month based on our store checks and incremental launches. We expect further retailer developments in the coming months.”
Only a month ago, Piper Jaffray had seen CBD-infused beauty goods as a subcategory under the organic beauty market, but the hype has convinced the firm to elevate it as a true class.
“Recall that we see the CBD beauty marketplace as an extension of this wider natural & clean beauty motion that is taking hold within the business. Google search trends suggest consumer attention in cannabis attractiveness was picking up over the last year,” Murphy stated.
In addition to the curated section in Sephora, the analyst noted a few department stores also jumped on the bandwagon.
Barneys announced last week that it will carry luxury cannabis accessories including quite a few CBD beauty goods at a Beverly Hills, California, location in March. Neiman Marcus also said it will start carrying a selection of CBD beauty products on the internet and in five stores.
“We continue to see established beauty manufacturers experimenting with hemp seed oil products versus CBD products.