(MENAFN- Baystreet.ca) New products containing the non-psychoactivecannabinoid CBD is boosting an already booming beauty industry. Consumerspending for the Total Beauty Market isprojectedto reach $758 billion in sales by 2024 . But it's the potential from the infusion of CBDproducts into the fold that is drawing in the efforts of several producers andretailers into the CBD beauty space, including The Yield Growth Corp. (CSE:BOSS)(OTC:BOSQF), Green Growth Brands (CSE:GGB) (OTC:GGBXF), Cronos Group Inc. (NASDAQ:CRON)(TSX:CRON), American Eagle Outfitters, Inc. (NYSE:AEO) and TheEstée Lauder Companies Inc. (NYSE:EL).
Perhaps leading the way with some ofthe most innovative proprietary formulas and products is The Yield Growth Corp.(CSE:BOSS) (OTC:BOSQF), whose thriving line of products that includes thepopular brands Urban Juve Wellness and Wright & Well, as well as other white-labelagreements. To date, the company has acquired or developed more than 200cannabis beauty, wellness, and beverage formulas for commercialization, and hassigned C$3.7 million worth in agreements over the past14 months .
The marriage of cannabinoids andcosmetics is already underway, with analysts at Piper Jaffray seeing a beautyboost to CBD sales potentially culminating in a$100 billion market . Even more conservative estimates such as one fromresearch group Jefferies predicts the CBD Market alone will reach$25 billion in 10 years , while a study from Arcview Market Research andpartners BDS Analytics pegged worldwide sales of legal cannabis to reach$57 billion by 2027 .
Retailers and consumers alike canlikely expect to see more products from The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF)in the months to come, while many of the company's much larger competitors haverecently gotten into the action.
Mall shoppers are already startingto see more Seventh Sense brand kiosks from Green Growth Brands (CSE:GGB)(OTC:GGBXF) that sell all types of CBD products in high-traffic mall locations.As well, GGB products are also being sold in American Eagle Outfitters, Inc.(NYSE:AEO) which is expected to launch a fullbeauty business prior to holiday seasonthat will include CBD-infused lotions, muscle balmsand aromatherapy products.
The move by AEO is expected to takearun at Sephoraas a one-stop shop for teens. Sephora has already beencarrying CBD products for months, starting with the Lord Jones brand—now ownedby Cronos Group Inc. (NASDAQ:CRON)(TSX:CRON)— and more recently theCBD Calm face mask from Estée Lauder (NYSE:EL).
CBD BEAUTY: BEHIND THE SCENES
Before each product hits retailershelves and lands in the consumers' baskets, plenty of development, testing,and prep needs to be done. Perhaps one of the most prolific producers of thesenew cannabis beauty and wellness products is The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF).
As it continues to develop itsproduct catalogue, Yield Growth currently has 26 new products in stabilitytesting with an additional 13 products on deck due to begin testing in upcomingweeks.
"Stability testing is a crucial part ofthe production process. It guarantees that the formulation works as intended byproviding a two-year shelf life. To ensure their efficacy, we use a minimumamount of clean, plant-based preservatives in all our products." says BhavnaSolecki, Director of Product Development at Yield Growth. "In order to createthese high-quality, natural products, Yield Growth invests a lot of time inresearch and development. R & D is a major facet of our operations, seekingto develop and enhance the existing products, while creating new formulations."
Included in the licensing agreementsannounced and signed in the past 14 months were: a C$1 million 3-year exclusiveItalian rights deal to distribute brands and infuse products with CBD and THC; aC$1 million agreement for US rights to infuse products with CBD and THC; a C$800,000deal for international rights to products for a hemp-infused men's line; and anotherC$900,000 for European rights deal to infuse formulas with CBD.
"We continue to negotiate morelicensing and distribution agreements, and we plan on signing several new dealsbefore year end," said Penny White, CEO of Yield Growth. "Our continueddevelopment of our catalogue of hemp formulas for CBD and THC infusion supportsour international licensing strategy."
The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF)continues to development its catalogue with 26 newproducts in the process of stability testing at a laboratory in BritishColumbia, including: Six (6) essential oil perfumes, four (4) natural remedyblends with essential oils, foot cream and hand cream made with proprietaryhemp root oil and exotic botanicals. The company has also developed eight (8) men'sproducts, including four essential oil colognes, shaving cream, hair balm,beard oil, and eight (8) white label versions of men's products without hemproot oil.
All formulas in Yield Growth'scatalogue are cruelty free and made with high-quality essential oils andbotanical extracts. They're also free from harmful substances, includingsulfates, SLS, SLES, parabens, formaldehydes or formaldehyde-releasing agents,phthalates, mineral oil, artificial fragrances, dyes, retinyl palmitate,oxybenzone, coal tar, hydroquinone and triclosan.
The company's products capitalize onthe growing consumer trend to seek products with natural, pure ingredients.Many of Yield Growth's beauty and wellness formulas contain hemp root oil madewith the company's patent-pending extraction technology, and are designed to beinfused with cannabinoids, such as CBD and THC.
The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF)will participate in theupcoming Jefferies Fitness and Wellness Summit in NewYork .
MAINSTREAMCBD POTENTIAL
Growing popularity of the Urban Juveline from The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF) has spread to thebenefit of other products in the space. Much of the Yield Growth's team'sexperience comes from mainstream global brands including Johnson & Johnson, Procter & Gamble, M·A·C Cosmetics, Skechers, Best Buy, Aritzia, Coca-Cola and PepsiCorporation.
Nowwe're seeing American Eagle Outfitters, Inc.(NYSE:AEO) get into the CBD beauty fray, selling a variety of CBD-infusedproducts including those of Green Growth Brands (CSE:GGB) (OTC:GGBXF). Abrick-and-mortar mall mainstay, AEO has launched its attempt to become aone-stop-shop for teens, that includes fashion, and beauty and wellnessproducts.
GGB will also be aggressivelyrolling out more kiosks and stores for its Seventh Sense line of CBD products. Injust the first seven months of the year, the company successfully opened morethan 100 CBD shops in the United States.
Starting with its Calm face mask, EstéeLauder (NYSE:EL) began selling CBD products on the website of popular cosmeticsretailer Sephora. The first CBD brand to launch on Sephora's sales options wasLord Jones, which Cronos Group Inc.(NASDAQ:CRON) (TSX:CRON) acquired earlier this year. Cronos plans to capitalizewith Lord Jones on a growing number of consumers clamoring for beauty products,foods and oils containing the cannabis compound in the fast-growing US CBDmarket.
Estée Lauder has since gone on toexpand its Sephora CBD offerings to include CBD-infused lotions. There islikely even more to come from EL, given that Estée Lauder Labs were the firstto present that cannabidiol has positive effects on eczema.
The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF)will likely be at the forefront of many of these new products, given itsproprietary, patent-pending extraction technology that produces its Urban JuveWellness hemp root oil.
Thanks to the way it's produced,hemp root oil is one of the most compliant sources of CBD available, and UrbanJuve is unique in its ability to produce it. Look for more CBD beauty andwellness products in the months to come.
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