A brief analysis of the national market for hemp cosmetics (part 1)

Taking into account the antimicrobial, antibacterial, antiviral properties of hemp ingredients, which can be enhanced by adding special natural substances to the formulation of a cosmetic product, it is recommended to develop, register, produce and market precisely professionally made hemp soap, placed in a package that prevents oxygen access to the cosmetic product.

In June 2020, the editors of the profile electronic edition of Ukrainian cannabis growers announced the study “ Hemp beauty industry in the world and in Ukraine (from the use of derivatives of grain, young shoots and roots in the formulations of cosmetic preparations, to the“ green mass ”of the hemp plant) " conducted by specialists of the information and analytical platform Hemp Consulting. This event was based on the results of 4 years of experience in the market of cosmetic preparations made on the basis of various components of the hemp plant obtained by technologists, marketers, as well as the study of the dynamics and sales of these products. With the permission of the customers of the above study, we publish its individual theses and recommendations, which were provided to the editors by the Hemp Consulting staff.

The need to revise the sales policy for certain categories of hemp cosmetics already on the market

The sales volumes of hemp cosmetics made on the basis of various hemp grain derivatives indicate that a number of products on the market have found their consumers, and several product positions need to change packaging, retail / wholesale margins, partly the recipe, it is possible to completely "remove" from production in due to the fact that the dynamics of sales of the aforementioned category of cosmetic products does not correspond to the existing dynamics of sales on the market.

Hemp cosmetics sales market in Ukraine

Recommendations : radically revise the sales policy for hemp cosmetic products, sales of which do not exceed 4-5%. Consider the creation of a universal cosmetic product, the effect of which is partially duplicated by three out of five names of cosmetic products that are not well sold on the market.

Competitive environment

Competitor companies either make similar mistakes over the course of 4 years, corrected by the customer, research (development exclusively in the premium segment of sales, implying a small amount of products with high added value), or trying to comply with global trends, introduce foreign-made cosmetic preparations with synthetic cannabinoids to the Ukrainian market or using extracts of certain non-natural cannabinoids purchased abroad, producing cosmetic products in the country. Therefore, the initially chosen niche is the minimum price (assuming the legal use of various components of a plant grown in Ukraine), subject to the maximum quality parameters (the formulations developed and introduced into the final product not only received the corresponding sanitary and hygienic certificates, bar codes, but also obtained from the results of experiments positive feedback from the participants of the test groups, and later buyers) speaks of the correctness of the initially chosen strategy. The focus on the therapeutic effects of a line of cosmetic products made on the basis of the therapeutic properties of various components of hemp seeds (oil, concentrate, cake, protein, extract) is currently justifying itself.

Recommendations : do not try to work in the market for cosmetic products that use synthetic cannabinoids due to the fact that:

- a significant number of national as well as foreign cosmetic companies are already present in this segment;

- taking into account the negative impact on the human body of non-natural cannabinoids, which merely mimic the therapeutic effect on the body of therapeutically active elements obtained directly from the plant, the brand image has already won consumer confidence in the market as one that represents products with significant therapeutic potential, will be significantly degraded;

- taking into account the rapidly changing legislation of economically developed countries of the world (primarily those that are part of the EU) that regularly add to the lists of prohibited goods, including cosmetic preparations made using synthetic cannabinoids, the export prospects of the above cosmetic preparations are extremely doubtful.

Lack of a classic cosmetic product on the national market - high-quality hemp soap

The absence of fundamental research of market needs previously conducted on this topic, as well as an analysis of the experience of foreign companies, indicates a number of niches filled with low-quality products or such market segments that national players do not pay attention to at the moment. In particular, in the product line of the customer company there is no such category of goods as hemp soap, despite the fact that the market contains only products of rather dubious quality, produced by Hand Made (manually), which do not take into account the peculiarities of the therapeutic properties of the hemp plant (derivatives of hemp grain found in the composition of formulations of various types of detergents coming into contact with the air extremely quickly “oxidize” (lose their medicinal qualities.) Packing such products in paper or polyethylene not only does not save, but also aggravates the situation. 

Recommendations : The COVID-19 pandemic raging in Ukraine suggests a significant increase in the use of this particular category of cosmetic products. Taking into account the antimicrobial, antibacterial, antiviral properties of hemp ingredients, which can be enhanced by adding special natural substances to the formulation of a cosmetic product, it is recommended to develop, register, produce and market precisely professionally made hemp soap, placed in a package that prevents oxygen access to the cosmetic product.

Promising projects

Research initiated by the customer company on the development of recipes for the use of hemp root, as well as experiments carried out outside Ukraine to create recipes for cosmetic preparations made on the basis of the leaves and inflorescences of technical hemp of therapeutic orientation, as well as the results of experiments and feedback from participants in experimental test groups speak of promising this niche of the cosmetic market in our country. 

Promising samples of hemp cosmetics based on the root and flowers of industrial hemp

"Cannabinoid footprint" of cosmetic preparations made using the leaves and inflorescences of industrial hemp of the "Mriya" variety registered in Ukraine, obtained using the express analysis method. In the center is an analogue of tetrahydrocannabinol (a white surface indicates an insignificant amount of a controlled substance in a cosmetic product). The picture indicates the presence of a range of therapeutically active cannabinoids in the sample under study, the work of which has a synergistic effect.

Recommendations : The launch of this kind of product on the market should be started with small batches that will demonstrate the preference of the end user. It makes sense to start bringing to the market 1-2 cosmetic preparations made with the use of hemp root, which are in maximum demand by the consumer, and have also proven themselves well during test sales. It is necessary to raise the question before the relevant government agencies about the need to amend the current regulatory framework regulating the legality of the use of leaves and inflorescences of technical hemp for therapeutic purposes.

Commentary of experts of the Association "Ukrainian technical hemp"

Within the framework of the round table “ Experience of using the therapeutic elements of technical hemp as raw materials for food, cosmetic preparations, biologically active or feed additives ” held for the students of “ Hemp University ”, representatives of the information and analytical platform Hemp Consulting will clearly present certain aspects of the research “ Hemp the beauty industry in the world and in Ukraine (from the use of derivatives of grain, young shoots and roots in the formulations of cosmetic preparations, to the “green mass” of the hemp plant) ”.