From The Editor's Desk

Latin America paves the way for CBD cosmetics

By Simon Pitman

- Last updated on GMT

Latin America paves the way for CBD cosmetics
The market for CBD skin care is rapidly opening up in Latin America thanks to a growing acceptance by regulators in countries like Colombia and Mexico, pointing to plenty of opportunities

In recent months a string of new launches and business ventures targeting the CBD skin care category in Latin America looks likely to trigger further growth in this area in the future.

In the US and Europe much progress has been made to overcome regulations hurdles for CBD cosmetics, but there is still plenty of gray area which makes launching brands there challenging.

In the US the Farm Bill that is being considered by the government could pave the way for a fully legalized hemp industry, which is likely to trigger similar moves in Europe, but in Latin America, regulation can move faster because it is decided on a country basis, instead of regionally.

What's happening in the region

So let’s look at some of the recent developments in the Latin American region, which have involved larger-sized players targeting the market for CBD skin care on a country-by-country basis.

Many of these players are moving in on countries where regulators have a more open approach to CBD cosmetics, in the hope that approval in one market will lead to regulators giving the nod in other countries in the region.

To avoid complications, many of these companies are headquartering their operations in Canada, where cannabis was made legal for both recreational and medicinal purposes thanks to the Federal Cannabis Act, which came into effect in October 2018.

Khiron moves in with its own brand and a JV

Cosmetics Design has detailed several of the biggest moves for CBD cosmetics market in the region in recent months, which has included companies such as Blueberries, Khiron, Dixie brands and Aurora.

One of the most significant launches in the region has been the Khiron CBD Skin Care Brand, from Canada-based Kuida.

The brand was launched in Colombia last year at the Belleza Y Salud​ event, and at the time company executives said they wanted to expand the launch to include other major markets in the Latin American region.

Then in April of this year, Khiron announced a joint venture with US-based Dixie brands​ in an effort to tap into Khiron’s distribution platform in the Latin American market to expand Dixie brands reach of its CBD cosmetics lines there.

Khiron is likewise aiming to tap into Dixie brands distribution network in the US market.

Aurora targets Mexico opportunities

In addition to the moves by Khiron, in January of this year, Canada-based Aurora Cannabis announced that it would be breaking into the Mexico market with the acquisition of Farmacias Magistrales​.

Farmacias Magistrales is currently the only business in Mexico with a license to import cannabis materials containing less than 1% THC and is also licensed to product CBD containing cosmetics in the country, making it an ideal partner for Aurora Cannabis to develop a range of CBD containing cosmetics targeting the whole Latin American region.

Meanwhile, just this month, the latest development in this area is the announcement that Canada-based Blueberries has been given approval by Colombian regulators​ to sell its line of CBD-derived skin care products in the country.

The company also believes that this move will give it the chance to secure similar approval in other major Latin American countries, giving it the chance to make the business regional.

The Cosmetics Design team will be keeping you up-to-date with all developments in the fast-growing CBD trend worldwide in the coming year, but we also expect to be bringing you plenty of news outlining further similar developments to the ones outlined in this article, very soon.

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