CBD Cosmetics in China: A Long Way to Go

According to a rundown of the critical trends in cosmetics in 2019 by Global Cosmetics News, "Unless you’ve been living under a rock, you’ll know that CBD has been one of the biggest trends within the beauty and personal care industries over the past year.”^[1] According to Adroit Market Research, the global cannabidiol cosmetics market is predicted to grow by 31.3% CAGR during 2015-2025. ^[2] It is undoubtedly a promising market globally. But how about in China?

Cannabis contains hundreds of bioactive component. The two most studied and headlining grabbing elements are tetrahydrocannabinol (THC) and cannabidiol (CBD). THC is primarily responsible for the psychoactive effects of Cannabis. A THC content of higher than 0.5% is the cutoff point generally used by different governments to classify the substance as a narcotic. Cosmetic products, therefore, use raw materials derived from low THC cultivars of Cannabis and take advantage of the CBD components.

Strictly speaking, cannabis cosmetics refer to cosmetics that use three leading derivatives of the cannabis plant: fruit, seed oil, and cannabis leaf extract. Cannabis sativa seed oil has excellent antioxidant and anti-aging effects as a high-end oil in washing skincare products. Still, it has little advantage over other high-end skincare oils. Cannabis leaf extract has garnered the most attention in terms of the application of Cannabis in cosmetics. The main cannabinoid in cannabis leaf extract is CBD. CBD has some essential functions when applied topically to the skin including anti-inflammatory, antibacterial, anti-acne, antioxidant, anti-aging, soothing and repairing, whitening and brightening skin, analgesic, anti-anxiety, stress relief, deep repair of basal cells, and cleansing of the skin. CBD has an excellent safety profile, a large body of research, and has no potential for abuse or addiction. CBD is, therefore, the ingredient with the highest utility in cosmetics.

Market dynamics

Due to the multiple effects of CBD, cannabis skin care products can be used in a variety of scenarios. At present, there are many types of skincare products containing CBD in foreign markets, including various forms such as lotions, creams, CBD creams, etc., mainly from some independent start-up brands and small and medium-sized brands. Some high profile examples of relatively successful products include a CBD essence from the well-known British brand, Revolution, and a CBD oil from Veritas Farms. These are the two most popular products in the European and American markets. ^[3] Besides CBD oil, popular skincare products in the North American market include Lord Jones body lotion containing 100mg CBD, KANA Lavender CBD sleeping mask that moisturizes, and brightens wrinkles, and Leef Organics soaps that clean pores and oils.

In stark contrast to the bold attempts of precocious CBD cosmetics start-ups, most large multinationals are choosing to sit on the fence and wait for the dust to settle before embracing the CBD revolution. Regulatory uncertainty is still a significant obstacle, and given the rapid expansion in the scope of products utilizing CBD, safety is always a concern. The braver multinationals that are testing the CBD waters are generally are erring on the side of caution and tend to use low concentrations and seed oil. Kiehl's has launched a series of cannabis seed oil skincare products. Estée Lauder's brand Origins and Sephora have launched a "Hello, Calm" mask containing cannabis seed oil.

In China, when ChemLinked searched in the notification and filing system for non-special use imported/domestic cosmetics, we found the following results:

We can see that domestic manufacturers have been trying to develop some cannabis products while foreign players are almost absent.

In the meantime, some original design manufacturers (ODMs) in China, such as Nox-Bellcow, COSMAX, and Ridgepole, have claimed to have the technology to produce cannabis products.

Regulations

Recently, the U.S. Food and Drug Administration (FDA) issued warning letters to 15 companies warning them that selling CBD-containing products was in violation of the Federal Food, Drug, and Cosmetic Act (FD & C Act). It suggests that the U.S. government holds a cautious attitude toward CBD-containing products. ^[4]

In China, on December 23th, 2015, the State Food and Drug Administration (CFDA, now NMPA under SAMR) issued Inventory of Existing Cosmetic Ingredients in China 2015 (IECIC2015), including cannabis Sativa fruit, cannabis Sativa seed oil, and cannabis Sativa leaf extract. This change to the IECIC opened the door for the research, development, production, and sale of cannabis cosmetics.

Key challenges

China’s government holds a very cautious and even strict attitude to cannabis products since China has some of the harshest narcotic control laws. Cannabis ingredients are subject to strict supervision by the anti-narcotics department of the public security bureau, which means that there are more procedures to follow when producing cannabis products in China(CBD is 100% forbidden to be used in food). Imported products are almost non-existent in the market, and it's difficult to say whether this is due to market issues or regulatory issues.

China’s domestic cosmetic sector also lacks the technical capacities and experience to produce state of the art cannabis products. Its unfortunate association with criminality also taints consumer perception of cannabis cosmetics. Although China is the world's leading producer of industrial cannabis fiber and seeds, there is still a big gap between China and European countries &the U.S. in the extraction and application of CBD.