Month: August 2022

The cannabinoid market is nothing like it was a decade ago. In 2012, the very first CBD products started to become available, and it wasn’t until 2018 that the CBD industry received an official nod from the US federal government.

On the other hand, the cosmetics industry has stayed relatively stable over the last 10 years. It hasn’t grown considerably, but it hasn’t declined at all. Interest in cosmetic products is the same as it always has been, but the cosmetics people are using are very different than they once were.

In this guide, learn the current size of the US cosmetics industry and the exact ways it has evolved in recent years. Then, discover the best hemp cannabinoids currently on the market that you can add to cosmetic products.

What is the current size of the US cosmetics industry?

According to a recent report from market analytics firm IBISWorld¹, the US cosmetics market is expected to be valued at just over $49 billion in 2022, a 1.5% increase over 2021’s total. As a result, cosmetics is among the larger consumer products industries, but it doesn’t show much room for overall growth.

Has the cosmetics market grown in recent years?

No, the US cosmetics market has not grown considerably over the last decade. The best year for cosmetics between 2012 and 2022 was 2015 at $55.4bn, and the worst year was 2020 at $44.7bn. As you can see, the cosmetics market has floated around the $50 billion annual revenue mark for quite some time.

How has the cosmetics market changed over the last decade?

The cosmetics market may not have gotten any larger or smaller over the last 10 years, but that doesn’t mean it hasn’t changed. Considerable shake-ups have taken place under the hood of the cosmetics industry, and outdated products are being phased out while newer ingredients are being added to the market.

Overall market size has stayed steady

If you look at market conditions closely, it’s surprising that the cosmetics industry hasn’t diminished from its stable $50 billion yearly revenue. During the last decade, the profound dangers of dozens of cosmetic substances² have come to light, and thousands of products have been taken off the shelves permanently.

To make up for the parabens, PFAs, methylene glycol, and other substances that are thankfully no longer present in cosmetics, new ingredients must have emerged within the cosmetics market or else the entire industry would have collapsed. As the raw data suggest, cosmetics manufacturers have ditched synthetic toxins and have started embracing natural healing substances instead.

Natural substances are on the rise

Whether it’s aloe vera, vitamin C, hyaluronic acid, essential oils, or even CBD, cosmetic products are now packed with natural substances believed to be even more effective than the dangerous ingredients they in some cases replaced. Access to the internet and its treasure trove of publicly accessible medical studies has given consumers the tools they need to make their own health and beauty decisions, and they’re starting to recognize the incredible potential present in nature’s unaltered bounty.

The population is aging

The US Census bureau indicates that by 2060, more than a quarter of Americans will be over 65³, an unprecedented “aging-out” of the US population that will have a profound impact on the cosmetics market. Interest in anti-aging compounds that don’t have any side effects will rise, and as budgets become constrained to Medicare and Medicaid, affordability will also be a prime concern.

Can you use cannabinoids in cosmetics?

Yes, you can certainly use cannabinoids in cosmetics, and the practice has become quite widespread. Cannabinoids that are commonly used in cosmetics include CBD, CBG, CBC, and CBN. The latter cannabinoid isn’t used all that commonly, but CBD, CBG, and CBC have all been investigated for their usefulness against conditions commonly treated topically.

What do cannabinoids do in cosmetics?

Consumers don’t just want cosmetics that make them look better anymore. They want cosmetics that actually make them better — in other words, cosmetics with healing properties. That’s where cannabinoids come into the picture.

Most substances present in Cannabis sativa flowers are believed to have at least some anti-inflammatory or antioxidant utility. Since oxidative stress is now widely known to be the primary cause of skin aging, antioxidants have become incredibly popular in cosmetic products over recent years. Anti-inflammatory substances, in addition, can often directly reduce the redness of skin conditions like acne, eczema, or rosacea.

Benefits of adding cannabinoids to cosmetics

As far as cosmetic ingredients go, cannabinoids are practically ideal. Cannabinoid extracts are easy to add to many different cosmetic formulations including lip balms, serums, and moisturizers, and cannabinoids are believed to have an overall positive effect on your skin health without causing considerable side effects.

“CBD” has become a buzzword within the online natural health community, so the inclusion of this cannabinoid often adds value to cosmetic products in and of itself. This effect has expanded recently to also apply to CBG and CBC, which consumers are starting to recognize as potentially being just as, or potentially even more useful in cosmetics as CBD.

What are the best cannabinoids to add to cosmetics?

If you don’t know which cannabinoids to include in your products, learn more about the most popular options below:

1. CBD

The most popular and well-known hemp cannabinoid by far, cannabidiol (CBD) has been investigated extensively⁴ for its potential antioxidant and anti-inflammatory benefits, and consumers generally believe it is at least somewhat useful in this regard. CBD should not have any noticeable psychoactive effects when applied topically in the form of a cosmetic, but it will provide benefits at the site of application for 3-6 hours.

2. CBG

Cannabigerol (CBG) has received a lot of attention recently due to research into its usefulness for bacterial infections⁵. Resultantly, CBG has become a red-hot popular substance in hand creams and other cosmetics designed to prevent transmissible illness. CBG is also rapidly gaining popularity in anti-acne topicals.

3. CBC

Cannabichromene (CBC) is still considered to be a rare cannabinoid, but consumers are catching onto research into this cannabinoid’s activity at your TRP receptors⁶, the primary neuroreceptors involved in inflammation. Manufacturers are accommodating this trend by infusing anti-inflammatory cosmetics with CBC.

4. CBN

The THC metabolite cannabinol (CBN) is currently the subject of a clinical trial⁷ into its potential wound-healing attributes. At present, CBN remains very rare in topical products, but hemp brands would be wise to watch this emerging space within the cannabinoid topical industry closely.

5. CBDa, CBGa, CBDV, etc.

CBD, CBG, CBC, and CBN are hardly the limit of the cannabinoids present in Cannabis sativa. Most cannabinoids, for instance, also have carboxylic acid forms with unique properties. CBDa isn’t the same chemically as CBD, for instance, and CBDV is another unique compound in itself. Over the years, the cannabinoid cosmetic industry will widen to accommodate even more of these natural healing substances.

Which cannabinoid-infused cosmetics products are the most popular?

Not sure which product types are best for infusing CBD, CBG, or CBC into? Here are the most popular types of cannabinoid cosmetics currently on the market.

Lip balms

Simple, affordable, and easy to produce, cannabinoid lip balms have been on the market longer than practically any other type of cannabinoid cosmetic. In this day and age, it can be a struggle to make a cannabinoid lip balm product stand out, but the addition of new cannabinoids to your ingredient pool allows new opportunities for diversification.

Moisturizers

It’s relatively easy to add CBD, CBG, or CBC to moisturizers, and there’s a general consensus among consumers that these substances improve moisturization via the reduction of inflammation and oxidative stress. Cannabinoids are common in both face moisturizers and products designed for your body and hands.

Serums

Relatively new to the market are serums: light, water-based cosmetics that you usually apply to your face. Designed to deliver beneficial substances deep into your skin with as few ingredients as possible, serums can be marketed at high prices as long as they feature formulations that are deservingly high-quality. Consumers generally view the inclusion of cannabinoids in serums as a value addition.

Body lotions and oils

Cannabinoid body lotions and oils are essentially no different than cannabinoid tinctures, which makes them affordable and easy to make. Used for massage, moisturization, and other purposes, adding cannabinoids to body oils is believed to make these products more therapeutic.

How to add cannabinoids to your cosmetics line

Using cannabinoids in cosmetics is no longer a risky move. Consumers have had enough time to accept the benefits of these essentially risk-free compounds, and demand for cannabinoid-infused cosmetics continues to rise.

Ten years from now, it’s likely that the US cosmetics market will be roughly the same overall size that it is today. Cannabinoid-infused cosmetics will take up a much larger share of the market, however, and every new cannabinoid cosmetic product launch will serve as a stepping stone along the way.

Pick the right cannabinoid or cannabinoids, choose a formulation type, and find a manufacturer. Within no time, you’ll have claimed your place within one of the biggest cosmetics industry shake-ups of the century.

Cannabinoids & cosmetics FAQs

Which cannabinoid is best for skin?

So far, it’s looking like CBG will shape up to be the superstar of the cannabinoid skincare industry. There’s a lot we don’t know about all of the cannabinoids present in hemp, however, so it’s too soon to decide if one cannabinoid is truly better than all the rest at keeping your skin healthy.

Are cannabinoids absorbed through the skin?

Yes, cannabinoids are naturally absorbed through the skin, but they usually must be accompanied by some form of carrier to achieve ideal penetration. As a result, water-based cannabinoid topicals are often preferred over oil-based equivalents since using a water base allows topicals to absorb with greater efficacy — even if they contain oil-based ingredients.

Does CBD work in skincare?

CBD has not been approved as an ingredient in any skincare products, so we can’t provide any official data regarding its usefulness as a skincare substance. What we can say, however, is that CBD users who apply this cannabinoid to their skin often report incredible results. According to users, these improvements could never have been accomplished with non-cannabinoid products.

Sources

1. 1. IBISWorld – Industry Market Research, Reports, and Statistics. (2022). IBISWorld. https://www.ibisworld.com/industry-statistics/market-size/cosmetic-beauty-products-manufacturing-united-states/
2. 2. Zanolli, L. (2019, July 2). Pretty hurts: are chemicals in beauty products making us ill? The Guardian. https://www.theguardian.com/us-news/2019/may/23/are-chemicals-in-beauty-products-making-us-ill
3. 3. Nasser, H. E. (2021, October 9). The U.S. Joins Other Countries With Large Aging Populations. Census.Gov. https://www.census.gov/library/stories/2018/03/graying-america.html
4. 4. Atalay, S., Jarocka-Karpowicz, I., & Skrzydlewska, E. (2019). Antioxidative and Anti-Inflammatory Properties of Cannabidiol. Antioxidants, 9(1), 21. https://doi.org/10.3390/antiox9010021
5. 5. Aqawi, M., Sionov, R. V., Gallily, R., Friedman, M., & Steinberg, D. (2021). Anti-Bacterial Properties of Cannabigerol Toward Streptococcus mutans. Frontiers in Microbiology, 12. https://doi.org/10.3389/fmicb.2021.656471
6. 6. Izzo, A. A., Capasso, R., Aviello, G., Borrelli, F., Romano, B., Piscitelli, F., Gallo, L., Capasso, F., Orlando, P., & di Marzo, V. (2012). Inhibitory effect of cannabichromene, a major non-psychotropic cannabinoid extracted from Cannabis sativa, on inflammation-induced hypermotility in mice. British Journal of Pharmacology, 166(4), 1444–1460. https://doi.org/10.1111/j.1476-5381.2012.01879.x
7. 7. INM-755 (Cannabinol) Cream for Treatment of Epidermolysis Bullosa. (2022). US National Library of Medicine. https://clinicaltrials.gov/ct2/show/NCT04908215

Using cannabinoids to improve the health of your skin is all the rage. In 2019, Grandview Research¹ valued the CBD skincare market at $698 million with an expectation that it will grow at a rate of more than 27% year over year until 2025. The previous year, fellow market researcher The Benchmarking Company (TBC) performed a comprehensive analysis of how many women would be willing to try CBD skin care and the types of products they prefer. Learn the results of this analysis and what they entail for the future of the cannabinoid beauty product industry.

What are cannabinoid-infused beauty products?

Simply put, cannabinoid-infused beauty products are beauty products that have been infused with non-intoxicating hemp cannabinoids. The most common cannabinoids used in beauty products are CBD, CBG, and CBN, and cannabinoids can be added to a wide variety of different types of beauty and skincare products.

What are the benefits of cannabinoid-infused beauty products?

Cannabinoids like CBD have been researched for their anti-inflammatory and antioxidative effects². Most substances in hemp appear to have at least some antioxidant potential, and reducing oxidative stress is one of the main ways that beauty products improve the appearance of skin and prevent it from aging.

How many women are aware of cannabinoid-infused beauty products?

According to TBC’s report, 64% of women were already aware of the existence of cannabinoid-infused beauty products in 2018. Given the fact that CBD has been a national phenomenon for less than a decade, it’s impressive that the majority of women are already familiar with cannabinoid beauty products.

How many women would be willing to try cannabinoid beauty products?

Out of the women who have not yet tried cannabinoid-infused beauty products, 72% indicated that they would be willing to give them a shot. Let’s break down the willingness of women to try cannabinoid beauty products by generation:

Percentage of Gen Z women willing to try cannabinoid beauty products

Women in Generation Z are just now starting to reach adulthood, and they’re starting to make purchasing decisions. The TBC report indicates that, as of 2018, 68% of Gen Z women were already willing to consider trying cannabinoid-infused beauty products.

Percentage of Millennial women willing to try cannabinoid beauty products

Composed entirely of adults with at least some peripheral awareness of cannabinoids, Millennial women polled at 74% likely to try cannabinoid-infused beauty products. Since Millennials are younger, though, they’re not yet as preoccupied with skin aging.

Percentage of Gen X women willing to try cannabinoid beauty products

Gen X women have witnessed every stage in the saga of modern hemp, and as of 2018, they were 77% likely to give cannabinoid beauty products a shot. Now that Gen X women are making up a considerable component of the middle-aged demographic, they’re becoming increasingly focused on preventative skin aging products.

Percentage of Boomer women willing to try cannabinoid beauty products

Women of the Baby Boom generation still clearly remember when “cannabinoid” was a buzzword associated with illegal drugs. At 60%, they’re still not quite as ready as other age groups to try cannabinoid-infused beauty products. 

How many young women have already tried cannabinoid beauty products?

Keep in mind that the above statistics pertain only to women who had not already tried cannabinoid beauty products. The Benchmarking Company found that 72% of women between the ages of 18 and 38 had already tried cannabinoid beauty products in 2018, indicating that cannabinoid-infused beauty products are remarkably widespread.

Where do women buy cannabinoid beauty products?

Even though women everywhere are using cannabinoid beauty products in droves, they massively prefer certain sources of cannabinoid beauty products to others. According to the TBC report:

• 38% of women who use cannabinoid beauty products buy them from specialty beauty stores
• 34% buy cannabinoid beauty products via multi-brand online retailers like Amazon
• 27% buy directly from brand websites
• 21% buy from conventional consumer packaged goods stores like Walmart

Why do women prefer buying cannabinoid beauty products at specialty retailers?

Women want to make sure that the cannabinoid beauty products they buy are authentic and high-quality. Twenty-four percent of women who buy cannabinoid beauty products say that concerns over authenticity are why they don’t want to buy from a retailer like Amazon.

The subset of women who buy beauty products has often developed buying patterns with certain brands or have personal relationships with clerks at specialty stores. Instead of going through the process of vetting dozens of potential products online, they prefer to discover new cannabinoid beauty products from trusted sources.

Once they’re aware of the benefits a cannabinoid beauty product might offer, though, women aren’t afraid to buy directly from the brand’s website. Women who buy cannabinoid beauty products from major retailers like Walmart generally do so due to convenience and can be steered toward online products that better suit their needs.

How to design and market cannabinoid products for specialty beauty retailers

Wherever you intend to sell it, a cannabinoid beauty product should befit the shelves of an upscale beauty shop. These shops are where women learn about the products they want to buy, and they’ll trust a product that looks and feels upscale.

As long as it’s justified by the ingredients you use, it’s reasonable to charge a premium for cannabinoid beauty products. Women understand that cannabinoids are expensive, and they’re willing to spend considerable sums on preserving their appearance.

What are the top 5 types of cannabinoid beauty products?

Women are most interested in cannabinoid beauty products they can use to improve the overall health and youthfulness of their skin. They also find themselves in need of certain specialized products like hand creams, lip balms, and even more conventional types of hemp products. Let’s take a look at the five most popular cannabinoid beauty product types The Benchmarking Company identified in its 2018 report:

1. Body lotion

Body lotion and other all-body skincare products are the most popular types of cannabinoid beauty products available. Women who use these products generally believe that they improve or preserve the youthfulness of the skin on their arms, neck, thighs, or posterior, and they commonly apply cannabinoid skin creams as general body lotions.

2. Hand cream

Cannabinoid-infused creams designed to be applied only to your hands are also quite popular. Researchers have looked into the potential ability of cannabinoids to improve hydration³, which is a common reason women apply creams to their hands. 

3. Lip balm

Hydration is also the main purpose of lip balms, and it’s convenient that cannabinoid-rich hemp extracts are oil-based just like lip balm bases. Women generally use cannabinoid-infused lip balms to improve their lip hydration or prevent aging oxidative stress.

4. Bath products

According to the TBC report, women commonly buy bath products that have been infused with cannabinoids. CBD bath bombs are one popular example, and there are also CBD bath salts and CBD bubble bath products to choose from.

5. Oils

Some women use plain-old CBD oils on their skin. Certain CBD oils are specifically formulated with skincare in mind, but it’s also reasonably common for women to use CBD tinctures intended for oral ingestion on their skin instead.

Why do women use cannabinoid beauty products?

According to the TBC report, the primary reason women use cannabinoid beauty products is because they believe hemp is a substance that is good for you. The report also indicates that Gen Z women, the youngest women using cannabinoid beauty products, are highly driven by positive customer reviews as they sift through available cannabinoid beauty products. Overall, TBC found that women generally believe cannabis has medicinal value, so they have no problem using it in skincare products that offer no potential of intoxication.

Which objections might you need to overcome?

To help hemp companies market their products to women, The Benchmarking Company investigated the most common objections women have to using cannabinoid beauty products as part of its 2018 report. Fifty-two percent of women are simply unaware of the potential benefits of using cannabinoid beauty products, and 30% are concerned about the topical safety of cannabinoids. A further 24% were simply content with the products they were already using, and 18% were concerned about potential intoxication.

Some of these objections are based on misconception, and the rest are based on lack of information. For women who simply don’t know what cannabinoids can do for their skin, education is the key. For women who are concerned about safety, certifications and lab reports are useful. Those who like their current routines can be led to understand the unique topical benefits of cannabinoids, and women concerned about intoxication can be assured that cannabinoids like CBD, CBG, and CBC are 100% intoxication-free.

Marketing cannabinoid beauty products to women: The bottom line

The cannabinoid beauty market is growing even faster than the overall cannabinoid market. Women everywhere are becoming aware of the potential topical benefits of cannabinoids, their needs are clear, and their objections are easy to overcome. With the benefits of cannabinoids even clearer than the needs of the women who use them, there has never been a better time to develop and market cannabinoid beauty products.

Cannabinoid beauty FAQ

Learn more about how cannabinoids fit into the beauty industry and the habits of female shoppers below:

What are the benefits of CBD in beauty products?

In beauty products like serums, moisturizers, and makeup, CBD is usually included as an antioxidant or anti-inflammatory compound. Encouraged by initial research into the antioxidant potential of CBD and other cannabinoids, beauty product manufacturers have leapt on this natural substance that seemingly has no serious side effects. CBD is increasingly becoming an affordable ingredient as well, making it ever the more ideal for beauty products.

Will CBD beauty products show up on a drug test?

No, CBD beauty products will almost never show up on a drug test since they are applied topically. Generally, the only types of CBD products that can cause a false positive on a drug test for THC are those that you internally ingest. Topically applied CBD products like beauty products do not enter the bloodstream in sufficient concentrations to pose any danger of accidental THC ingestion.

Is CBD good to put on your face?

Many users believe that CBD is very helpful when applied to your face. People with acne, rosacea, and other inflammatory skin conditions swear by CBD topicals, and topically applied CBD products are just as popular among people who suffer from chronic pain.

Do CBD lotions actually work?

Based on anecdotal testimony, it’s clear that CBD lotions appear to possess a certain level of promising effectiveness.The efficacy of CBD lotions is so widely reported that the likelihood of a placebo effect being responsible is very low. It bears keeping in mind, though, that the inherent benefits of CBD are only kept intact in high-quality CBD lotions that include excellent ingredients.

Sources

1. 1. Global CBD Skin Care Market Size Report, 2020–2025. (2019). Grandview Research. https://www.grandviewresearch.com/industry-analysis/cbd-skin-care-market
2. 2. Atalay, S., Jarocka-Karpowicz, I., & Skrzydlewska, E. (2019). Antioxidative and Anti-Inflammatory Properties of Cannabidiol. Antioxidants, 9(1), 21. https://doi.org/10.3390/antiox9010021
3. 3. Martins, A. M., Gomes, A. L., Vilas Boas, I., Marto, J., & Ribeiro, H. M. (2022). Cannabis-Based Products for the Treatment of Skin Inflammatory Diseases: A Timely Review. Pharmaceuticals, 15(2), 210. https://doi.org/10.3390/ph15020210

For hundreds of years, pharmaceuticals have been understood to be substances that improve your health in some way. Nutraceuticals are the same thing except that they’re derived from natural sources instead of synthesized in a lab.

According to recent surveys, an increasing number of consumers are seeking health help from nutraceuticals, not pharmaceuticals. The nutraceutical industry is now worth tens of billions of dollars, and the popularity of nutraceuticals has synergized with an overall increase of interest in natural approaches to health.

What are nutraceuticals, exactly, and how are they changing the health industry? Find out everything you need to know about this class of natural health aids — including the details regarding their relationship with cannabinoids.

What are nutraceuticals?

Strictly speaking, a nutraceutical is a food that contains substances believed to improve your health. Nutraceuticals don’t have to come in the form of whole meals. It’s important to stipulate that nutraceuticals come from foods because pharmaceuticals usually don’t.

The term “nutraceutical” has generally evolved to encompass all naturally derived supplements believed to have health benefits. To denote this wider group of substances, the alternative term “bioceutical” is sometimes substituted.

How does the FDA define nutraceuticals?

The FDA generally uses the term “dietary supplement” instead of “nutriceutical.” While academic papers¹ insist that this federal regulatory agency acknowledges the existence of nutraceuticals, the FDA doesn’t have an official definition for them. Instead, nutraceuticals generally fall under the FDA’s definition of dietary supplements, which reads (in part): “[a] product (other than tobacco) in the form of a capsule, powder, softgel or gelcap intended to supplement the diet to enhance health.”

What is the difference between nutraceuticals and pharmaceuticals?

Nutraceuticals are derived from entirely natural sources, but pharmaceuticals can be produced using artificial means. The term “nutraceutical” also generally infers that a substance has nutritional value, but this isn’t always the case.

Since industry leaders started referring to natural supplements as nutraceuticals, our understanding of human health has developed quite a bit. It’s now recognized that hundreds of different natural substances might have health benefits — even those that don’t have any nutritional value.

What types of nutraceuticals are there?

Nutraceuticals are all alike in that they’re derived from natural sources that are often used for food, but the similarities end there. Some nutraceuticals — like the terpene limonene, for instance — can be directly derived from citrus fruits used for food. Others, however, come from yeast, mushrooms, or even rocks².

For the purpose of industry analysis, nutraceuticals are generally divided into three categories: dietary supplements, functional foods, and functional beverages. Put another way, the three main economic categories of nutraceuticals are products you swallow, products you eat, and products you drink.

Are cannabinoids nutraceuticals?

Cannabinoids are natural substances derived from Cannabis sativa, a plant with seeds that are often used for food purposes. As a result, cannabinoids loosely fit the definition of nutraceuticals, but the exact regulatory category cannabinoids belong in is currently a subject of considerable debate.

For personal or scientific purposes, it’s perfectly fine to consider cannabinoids nutraceuticals. Be careful how you describe cannabinoid products currently offered for sale, though, since mischaracterizing hemp products could get you in trouble³.

Are nutraceuticals popular?

Nutraceuticals have massively shot into popularity over the last few years. Market research analysis conducted in 20174 found that the US nutraceutical industry had already swelled from $58 billion to $71 billion over the previous three years, and it predicted the industry would be worth over $105 billion in 2022. By 2025, analysts believe the nutraceutical industry will be valued at $133.39 billion.

With the nutraceutical industry set to more than double in size in just over a decade, it’s safe to say that nutraceuticals are most definitely popular and are only getting more popular with time.

What is the nutraceutical industry worth?

In 2017, the nutraceutical industry was estimated to be worth just over $383 billion worldwide. At the time, market analytics firms suggested that it might be worth more than $561 billion by 2023.

Based on just-released research, it appears these predictions were right on the money. In April of 2022, Zion Market Research released a report estimating that the global nutraceutical industry is now worth $449.5 billion⁴ and is expected to grow to $745.5 billion by 2028.

How fast is the nutraceutical industry growing?

It’s difficult to pinpoint the exact rate of growth the nutraceutical industry is currently undergoing, but we know one thing for sure — it’s growing fast. Led by a breakneck-rate growth of interest in alternative medical care in Western countries, the global nutraceutical industry is set to double in value over the course of the decade between 2017 and 2028, mirroring recent rates of growth seen in the US.

The nutraceutical market in 2025

By 2025, the American nutraceutical market will be twice the size it was in 2015, and statistics indicate the same will be true for the global market as well. That means brands now emerging into the nutraceutical industry have twice the opportunity as brands that launched a decade ago, but they’re also facing a modernized industry with lots of competition. The best way to prepare for the nutraceutical market of 2025 is to launch an excellent brand today.

Nutraceuticals by product type

For the purposes of industry analysis, nutraceuticals are often broken down into the three subcategories we mentioned earlier: dietary supplements, functional foods, and functional beverages. As we learn about the growth of the nutraceutical industry, it can be useful to examine the growth of each individual subcategory:

What are dietary supplements?

Dietary supplements are generally classified as nutraceuticals that you take in the form of a tablet, capsule, or another concentrated product, not in the form of food or beverages. This is the type of nutraceutical for which the FDA has provided the clearest regulations.

What are functional foods?

Functional foods are edible products that are boosted with nutraceutical substances. Some functional foods, such as turmeric root, naturally contain the substances that make them nutraceuticals — in the case of turmeric, the potent antioxidant compound curcumin. With other functional foods, nutraceutical substances are added to food items to create infused edible products.

What are functional beverages?

Functional beverages are drinks that contain nutraceutical substances. The popular fermented drink kombucha, for instance, is commonly considered to be a nutraceutical due to the probiotics it contains. In other cases, conventional drinks like sparkling water are infused with cannabinoids, adaptogens, or other substances commonly considered to be nutraceuticals.

What is the fastest-growing nutraceutical product type?

In 2014’s United States, functional beverages were worth $11.2 billion, functional foods were worth 17.6 billion, and dietary supplements were worth $29.8 billion. By 2017, these subcategories had swelled to $14.8bn, $21.7bn, and $35.2bn. In 2022, functional drinks, functional foods, and dietary supplements are projected to be worth $21.7bn, $30.8bn, and $52.5bn respectively.

While dietary supplements still make up the lion’s share of the nutraceutical industry, functional drinks are actually the fastest-growing subcategory. The functional nutraceutical drink market is projected to have nearly doubled in size during the eight years between 2014 and 2022, exceeding the growth rates of other subcategories substantially.

Key takeaways

There’s a mounting trend of consumers wanting to get their health supplements from drinks. The overall benefits of staying hydrated are more well-known than ever before, and consumers are both concerned about the dangers of soft drinks and energy drinks while remaining accustomed to their sweetness and energizing benefits.

As a result, drinks designed to make you feel energized using nutraceutical substances are becoming increasingly popular. However, anti-anxiety and anti-insomnia nutraceutical drinks are just as in-demand.

Even though functional drinks represent the fastest-growing nutraceutical subcategory, this category is still the smallest overall. There may be more competition and less growth potential in dietary supplements and functional foods, but that’s still where most of the capital is invested.

The growing importance of nutraceuticals

Nutraceuticals aren’t going away. Even the verbiage surrounding this class of substances is archaic, so it’s understandable that regulatory agencies are taking a while to grapple with this facet of the natural health revolution. It’s a fact that hundreds of natural, edible substances have massive health benefits, though, leading to an enhanced focus on nutraceuticals among health-conscious consumers.

So far, projected growth rates for the nutraceutical industry have been right on track. They may, in fact, have been a bit pessimistic. Right now, the idea of a $130 billion-per-year US nutraceutical industry can sound far-fetched, but there’s a lot going for nutraceuticals.

Especially in these pandemic-impacted times, people are looking for new ways to improve their immunity or boost their overall health. The benefits of nutraceuticals speak for themselves, and they’ll start speaking even louder over the coming years.

Nutraceuticals FAQs

1. What are the basics of nutraceuticals?

In a nutshell, nutraceuticals are “natural pharmaceuticals” — they’re substances with near-pharmaceutical potency that are nonetheless found in nature. The name “nutraceutical,” however, etymologically comes from the words “nutritional” and “pharmaceutical,” which is to say that nutraceuticals are medicinal foods.

So, put all together, nutraceuticals are natural pharmaceuticals that you eat. Not all products described or labeled as “nutraceuticals,” however, have nutritional value or are even orally ingested. Therefore, despite the implications inherent to the name, nutraceutical can only truly be said to mean “natural healing substance.”

2. What are the most commonly used nutraceuticals?

Some of the nutraceuticals that average people use most commonly are vitamins, minerals, and plant oil extracts like terpenes and cannabinoids. While some definitions of the term do not include vitamins and minerals, nutraceuticals are widely understood as bridging a wide spectrum of different medicinally beneficial, orally ingested substances.

Vitamins and minerals have been used as supplements for decades. It’s only more recently, though, that plant extracts like essential oils, terpenes, and cannabinoids have also entered the nutraceutical market in full force. Shoppers now understand that many plant extracts have benefits on par with or even exceeding those of vitamins and minerals.

3. Did the FDA approve nutraceuticals?

The FDA has approved certain substances sometimes known as nutraceuticals for certain conditions. This government agency, however, has not approved nutraceuticals as a general category of substances.

The FDA does not even have an official definition of nutraceuticals. On the agency’s official website, the only mention of the word “nutraceutical” is in association with public postings of false claim filings against offending supplement producers.

4. Are nutraceuticals regulated in the US?

As a general category of substances, nutraceuticals are not regulated by any federal government agency in the United States. The same is the case in Europe, wherein the European Union likewise does not define nutraceuticals as a distinct product category for regulatory purposes.

Specific substances labeled as nutraceuticals, though, are very likely to be regulated in the United States. When determining the regulatory procedures for a certain nutraceutical substance, research its status individually.

Summary: Nutraceuticals and cannabinoids are converging

Directly calling cannabinoids “nutraceuticals” can be a regulatory risk, but it’s worth noting how seamlessly the hemp industry is being enfolded within the overall nutraceutical market. CBD is now a popular substance in all manner of dietary supplements, and we’re even starting to see the emergence of food and drink products infused with rarer cannabinoids like CBN and CBC.

Whether it’s nutraceuticals or cannabinoids, the infused food and drink market shouldn’t be overlooked. Today’s consumers don’t always want to take health supplements in pills: They want to eat or drink them the same way they would anything else. If there’s one prediction you should take away from this analysis, it’s that nutraceutical and cannabinoid-infused food and drinks will become even more popular than anyone currently expects over the coming years.

Sources

1. 1. Santini, A., Cammarata, S. M., Capone, G., Ianaro, A., Tenore, G. C., Pani, L., & Novellino, E. (2018). Nutraceuticals: opening the debate for a regulatory framework. British Journal of Clinical Pharmacology, 84(4), 659–672. https://doi.org/10.1111/bcp.13496
2. 2. Carrasco-Gallardo, C., Guzmán, L., & Maccioni, R. B. (2012). Shilajit: A Natural Phytocomplex with Potential Procognitive Activity. International Journal of Alzheimer’s Disease, 2012, 1–4. https://doi.org/10.1155/2012/674142
3. 3. Office of the Commissioner. (2022, May 6). Warning Letters and Test Results for Cannabidiol-Related Products. U.S. Food and Drug Administration. https://www.fda.gov/news-events/public-health-focus/warning-letters-and-test-results-cannabidiol-related-products
4. 4, Nutraceuticals Market Size, Trends, Growth | Industry Analysis (2022–27). (2022). Mordor Intelligence. https://www.mordorintelligence.com/industry-reports/global-nutraceuticals-market-industry
5. 5. Research, Z. M. (2022, April 20). Growth Scope of Nutraceuticals Market Size Worth USD 745.5 Billion By 2028 At 8.8% CAGR – Industry Trends & Forecast Report by Zion Market Research. PR Newswire. https://www.prnewswire.com/news-releases/growth-scope-of-nutraceuticals-market-size-worth-usd-745-5-billion-by-2028-at-8-8-cagr—industry-trends–forecast-report-by-zion-market-research-301529003.html

Members of older generations may not be familiar with newer cannabinoid product types like edibles. More and more, however, average consumers are recognizing edibles as an effective and convenient way to take cannabinoids that don’t have to get you high.

Market researcher, Ipsos, recently released a report¹ covering the main reasons cannabinoid users choose edibles. Understanding the factors that are driving the results of this survey will make it easier to cater to a cannabinoid market increasingly drawn towards edibles.

What are edibles?

The term “edibles” once only referred to food items infused with the intoxicating cannabinoid THC. Today, this term has expanded to include any type of cannabinoid-infused product that you chew up or swallow.

What types of edibles are there?

Some of the most common types of cannabinoid edibles include:

1. Brownies

2. Cookies

3. Hard candies

It’s also possible to infuse cannabinoids into orally ingested products like:

1. Gummies

2. Jellies

3. Chocolate

4. Tablets

5. Tinctures

6. Capsules

What are the benefits of edibles?

Edibles make taking cannabinoids easy and delicious. Many consumers are concerned about the potential negative health effects of smoking, and they’re leery of other methods of inhaling cannabinoids like vapes. Topicals are great, but they only offer effects in targeted areas. Edibles are known for offering reliable effects and they taste good to boot.

Why do cannabinoid users use edibles?

According to the Ipsos report, there are five main reasons consumers choose edibles over other types of cannabinoid products. There are quite a few additional reasons as well that we’ll make sure to cover at the end:

#1. Convenience

Out of the cannabinoid consumers Ipsos surveyed, 38% cited the convenience of edibles as the reason they chose this type of product over other ways you can use cannabinoids. It’s true: Especially for novice users, taking an edible is much easier than juggling the complicated paraphernalia involved in smoking or vaping.

Depending on the situation, edibles can definitely be more convenient than inhaling cannabinoids, but they’re generally considered to be just as effective. It’s well-known that edibles take a while to kick in, but once they do, the effects edibles offer last longer and are often stronger than the effects of inhaling cannabinoids.

#2. They think it’s healthier

As the second-most-popular reason for using edibles as opposed to another kind of cannabinoid product, 25% of cannabinoid consumers said they thought edibles were a healthier way to use THC, CBD, or their cannabinoid of choice. 

Given that so many consumers feel edibles are healthier, cannabinoid producers would be wise to focus on natural ingredients and reduced sweeteners in their edible products. Doing so reinforces one of the main benefits users of edibles seems to value quite highly.

#3. Easy to share

Lots of people use cannabinoids socially. Smokeables can be hard to share and therefore can be less desirable amongst larger groups of people. Edibles, on the other hand, are easy to break into smaller pieces, and many cannabinoid edible products contain enough doses to share with friends. The Ipsos survey found that 19% of cannabinoid users preferred edibles for their shareability.

Edibles have evolved significantly in recent years, these days, cannabinoid users are moving towards gummies, tablets, and other bite-sized products.

#4. Easy to buy

When you choose edibles, it’s easy to know the exact potency of each serving of cannabinoids you ingest. This straightforward dosing reduces indecision consumers face when choosing other cannabinoid products. 19% of edible users to prefer taking their cannabinoids this way due to ease of acquisition.

Strains of flower change by each phenotype and small brands dominate the flower and vape space. Topicals and edibles, on the other hand, are often offered by bigger brands with products that are easy to find in many different cities and states.

#5. Accurate dosing

Coming in close behind the previous two reasons, 18% of the respondents to the Ipsos poll said they preferred edibles because they allow easier and more accurate dosing. 

The process of eating cannabinoids is inherently slower than inhaling them, allowing you to take the time necessary to get your dose just right. Good cannabinoid edibles come with clearly labeled dosing information.

Other reasons

The five reasons we just covered were the most commonly chosen among cannabinoid users who prefer edibles, but Ipsos provided a few additional selectable options. Fourteen percent of respondents, for instance, indicated that they only preferred edibles because a friend liked them, and 12% believed edibles offered faster onset of effects.

A further 6% indicated that they believed edibles helped better with the condition they were trying to treat while causing fewer side effects. Ipsos reports that another 11% chose reasons that weren’t provided in the poll.

Key takeaways

Across every cannabis market — recreational, medical, and the online hemp industry — cannabinoid users often prefer edibles first and foremost because they’re more convenient. Most hemp products you can buy online are either edible or topical anyway, and cannabinoid users indicate that they have an easier time finding the edibles they need while other product types can be more elusive.

Sharing is a big priority for many edible users, and cannabinoid consumers appreciate how easy it is to dose accurately with edibles. Given the fact that so many edible users are concerned about their health, using only safe, natural ingredients should be a major priority for edible manufacturers.

Which cannabinoids are available in edibles?

When you hear the word “edible,” the first thing you think of might be THC. That isn’t the cannabinoid at the center of our discussion, though. Edibles now include orally ingestible cannabinoid products containing CBD, CBG, CBN, and other non-intoxicating hemp substances that are now becoming popular worldwide.

CBD

Technically, the term “edible” includes any type of CBD product you ingest orally. In this sense, tinctures, capsules, gummies, and tablets all fall under the same overarching category, composing the largest segment of the online CBD industry.

CBD is no longer something you can just brush off. The CBD industry has expanded massively over recent years, and demand for edible CBD products has skyrocketed along with it.

CBG

Lots of edible hemp products you can buy online now contain CBG. Farmers are producing this cannabinoid at a record pace, and it’s now common to see CBG provided in the form of tinctures, gummies, capsules, and other orally ingested products.

Scientists are very interested in the potential anti-inflammatory properties of CBG — particularly as they might pertain to gut diseases². As a result, demand for CBG products that are processed through the gut is steadily rising.

CBN

CBN isn’t as popular as CBG yet, but that just means this cannabinoid has more room to grow within the online hemp market. Users are convinced that CBN helps with sleep, and scientists are keenly researching³ this cannabinoid’s purported ability to help with sleep conditions.

At present, CBN is usually offered in the form of orally ingested products. This cannabinoid is usually included with CBD since the two hemp substances are believed to interact cohesively.

Summary: Convenient edibles come in many cannabinoids

Since the earliest days of cannabis, edibles have been there for people who either they didn’t like to smoke, or they thought that eating edibles was simply the more convenient option.

Non-intoxicating cannabinoids are now readily available online and the convenience of edibles hasn’t changed. However, according to the latest consumer data, it doesn’t show any signs of going anywhere anytime soon.

Whether it’s CBD tinctures or CBG gummies, people love edibles for their convenience, potency, and easy dosing. They love sharing edibles with friends, and they certainly appreciate edibles that are designed with their health in mind.

Cannabis edible shopper habits FAQs

Learn more about how and why shoppers use edibles below:

1. What feeling do edibles give you?

In contrast to inhaled cannabinoid products, which offer intense effects with rapid onset, edibles provide long-lasting effects that can take a while to kick in. Depending on the dose, edibles might provide effects that are just as potent as smoking, less potent, or even more potent.

In the event that edibles feel more intense than other products, they’ll continue to feel that way for quite a while. For this reason alone, it’s important to exercise caution when choosing an ideal cannabinoid edible dose.

2. Is it healthy to take edibles?

The relative safety or healthiness of taking cannabinoid edibles depends on the ingredients present in the edible. Some cannabinoid edibles only contain high-quality, organic ingredients and contaminant-free hemp extract.

Others, though, could contain dangerous synthetic ingredients or pesticide-contaminated extracts. Assuming you choose the right product and ingredients, the overall dangers posed by cannabinoids appear to be low.

3. What do 1:1 edibles feel like?

If an edible product contains a 1:1 ratio of one cannabinoid to another cannabinoid, it should provide a balanced fusion of the effects of both compounds. In the case of a 1:1 CBD and CBG edible, for instance, users should expect to feel both relaxed and energized while the shared benefits of the cannabinoids intensify. 

Sources

1. 1. IPSOS Report. (2019). Ipsos. https://www.ipsos.com/sites/default/files/ct/publication/documents/2019-06/wtf_cannabis_us_webinar_jrs-v2-1.pdf
3. 2. Borrelli, F., Fasolino, I., Romano, B., Capasso, R., Maiello, F., Coppola, D., Orlando, P., Battista, G., Pagano, E., di Marzo, V., & Izzo, A. A. (2013). Beneficial effect of the non-psychotropic plant cannabinoid cannabigerol on experimental inflammatory bowel disease. Biochemical Pharmacology, 85(9), 1306–1316. https://doi.org/10.1016/j.bcp.2013.01.017
5. 3. Corroon, J. (2021). Cannabinol and Sleep: Separating Fact from Fiction. Cannabis and Cannabinoid Research. https://doi.org/10.1089/can.2021.0006