2021 CBD Update: How beauty businesses can take advantage of this growing market

2021 CBD Update: How beauty businesses can take advantage of this growing market

Cannabidiol (CBD) and cannabis continue to be hot in the beauty industry, with more and more salons, spas and cosmetic manufacturers seeking ways to integrate this ingredient into their menu offerings. In fact, according to a recent study, the CBD-based skin care market is expected to exceed $3.45 billion by 2026, a staggering figure indicative of this product’s growth within the industry in recent years.

As the CBD market continues to grow, salons and spas may be wondering if they should jump in. With competitors offering CBD massages, skincare products, infused beverages, eye patches and more, it is certainly worth beauty businesses evaluating whether the product is right for their operation.

First, it’s important to look at what benefits CBD products offer. According to Skin Inc., CBD can support the skin by stabilizing glands that get clogged and cause acne. Since CBD is anti-inflammatory, it’s also useful in keeping skin less irritated and inflamed, which can help reduce acne and redness.

Beyond skincare, CBD is also a valuable offering for beauty businesses looking to expand their massage services. Some have started offering massages using CBD oils and lotions. According to Massage Magazine, CBD massages can offer significant pain relief to clients in need, in addition to helping with anxiety, tension and inflammation.

Since CBD use is growing and offers several benefits to customers, it may seem like the obvious move to add it to your salon or spa repertoire. Before doing so, however, it’s important to examine whether the product offers any risks to your business.

According to the FDA, CBD products are legally allowed for use under the U.S. Farm Bill, as long as they contain less than 0.3 percent THC. If salons and spas are offering CBD treatments within that limit, there isn’t additional risk.

However, the true risk for businesses comes in the marketing behind their CBD products. The FDA noted in its review of CBD products that several businesses have marketed their CBD products and treatments in ways that have placed the health and safety of customers at risk.

Beauty businesses should make sure they are careful with their marketing efforts, avoiding making promises they can’t keep, such as advertising their product as a cure-all or guaranteeing success. They should also reach out to their insurer to confirm they aren’t incurring any new risks by expanding their menu to incorporate CBD.

The CBD market is growing fast and now is a great time for beauty businesses to jump in — as long as they temper their marketing messaging, make sure they’re using products within legal regulations and speak with their insurer to assess if they’re adding any significant risks to the business.

Kathy Lopez, Account Manager for SASSI, the Salon and Spa Specialty Insurance program at Brownyard Group. She can be reached at klopez@brownyard.com.

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