The founder, CEO, and formulator for CBD skincare brand Pura Vida shares a comprehensive overview of where the sector is heading in regulatory, consumer behaviour, and technological innovations.

Celebrating ten years this year, Pura Vida expands its range with haircare and has moved its production facility to Croatia in order to work with co-ops and be closer to the hero ingredient—crops of hemp.

– Our botanical extracts are all plant-based, and we get hemp, wild lavender, and a really famous ingredient—helichrysum, or otherwise known as immortelle—from Croatia, says Deegan. We produce topical CBD skincare, and in the last 3 years, we’ve broadened that to cannabinoid skincare because there are more cannabinoids that are allowed to be used in skincare. Legally, there’s only CBD (Cannabidiol) and CBG (Cannabigerol)—THC (Tetrahydrocannabinol) is not allowed, although it’s amazing on the skin.

Can you explain more about where we are now in CBD skincare? What’s the regulatory situation?

– In Europe, we are allowed to have CBD and CBG in skincare as long as there’s no THC—you’re not allowed to have any trace amounts of THC if you want to register it as a cosmetic. Full spectrum oils or full spectrum products, that are legal but in the gray area, are not allowed to be registered as a food supplement or as a cosmetic because they contain various levels of THC. Generally, (the level of THC approved in full spectrum products, Ed’s note) it’s 0.2%, but some countries are different. Italy used to have 0.6% THC, but now they’ve they’ve lowered it to 0.3%. In Scandinavia, it’s 0.2%.

– In Europe, cosmetics are strictly regulated, requiring a safety report, mandatory product registration, and compliance with GMP standards. Products cannot be sold in the EU without these elements in place, and companies are subject to audits and inspections.

– The US operate very differently from Europe in terms of cosmetic legislation. In the U.S., cosmetics are self-regulated by companies with no pre-market approval, safety report, or mandatory adherence to GMP standards. Registration of products is voluntary, and the FDA typically intervenes only after products are on the market if there are safety concerns.

– Each state in the U.S. can have its own set of laws regarding the sale and use of CBD and hemp products, creating a fragmented regulatory landscape. CBD and hemp businesses face ongoing challenges with payment processing and banking because these products are still often viewed as being related to controlled substances. Many financial institutions and payment processors are hesitant to work with these businesses due to the classification of CBD as a drug and ongoing legal uncertainty. The lack of clear federal regulations around CBD in foods, beverages, and supplements adds to the confusion, leading to further challenges for businesses in navigating the legal landscape.

– For America, recreational and wellness sectors are the primary drivers of demand for CBD, while cosmetics is a growing secondary market. They’re producing a lot and have flooded the market with lots of CBD, which is what has crashed the prices. 5 years ago, 1 kilo of CBD acid was 2000 USD. Now you can buy it for 250, 300. It’s huge supply so the price came down, which is great for consumers and producers, who can operate efficiently, but it also puts pressure on less efficient producers.

– In conclusion, the rapid growth of the CBD market, combined with oversupply, has caused prices to fall dramatically, which benefits consumers but also challenges producers.

And you as an entrepreneur, are you optimistic? We see movements in the right direction if you want more CBD skincare and some in another direction. What do you forecast?

– I am optimistic, especially in the growing sectors of CBD skincare and wellness products. The demand for CBD cosmetics is rising due to its anti-inflammatory and antioxidant properties, and stricter regulations are ensuring safer and more compliant products. The wellness market is also expanding, with consumers increasingly seeking natural solutions for stress, sleep, and pain. This trend will drive demand for CBD oils, gummies, and capsules.

– As the regulatory landscape becomes clearer, with stronger EU-wide guidelines and more clinical studies, we expect greater mainstream retail distribution and e-commerce growth, making CBD products more accessible. However, challenges like market saturation and price pressure will require companies to differentiate through quality and branding. Overall, the market is poised for steady growth in the next 3-5 years, driven by innovation, clearer regulations, and expanding consumer awareness.

More in general, what’s the hot topic in the CBD beauty sector now?

– The growing focus on CBD’s anti-aging and skin-soothing properties. As consumers increasingly seek natural alternatives for skincare, CBD’s potential benefits in addressing skin inflammation, reducing redness, and promoting healthier skin have made it a standout ingredient in anti-aging and sensitive skin care products.

Key trends within this space include:

1. CBD’s Anti-Inflammatory Benefits: CBD’s ability to reduce inflammation and irritation is highly sought after in beauty products aimed at sensitive or acne-prone skin, as well as those targeting conditions like eczema or rosacea.
2. CBD’s Antioxidant Properties: Antioxidants help protect the skin from environmental damage, and CBD is being highlighted for its role in reducing oxidative stress, which is a key factor in premature aging.
3. Clean Beauty Movement: With the rise of clean beauty, consumers are looking for natural, cruelty-free, and sustainable ingredients, and CBD fits well into this demand as a plant-based ingredient.

You mentioned the THC limit, 0.2%. Is that the optimal level?

– Yes, it’s good. A lot of people are not using THC recreationally, so they’re sensitive to its psychotropic effect. 0.2% is enough to have beneficial effects, whereas 1% is too much—you just feel high, though some people can handle it. If you slowly build up your dose, your tolerance level is great. And if you’re a cancer patient, you must have a 1 to 1 ratio of THC to CBD, while if you’re using a full spectrum oil, 0,2 is great. But if you were allowed to use THC in topical products, I would like to have 1% at least, because when you put it on your skin, you can’t get high, and you’d have great results for pain.

We’ve also seen concerns around the quality of CBD due to import from, for instance, China of lower quality. What’s your view on this?

– The concerns are valid and important to address. Quality control is essential in the CBD industry because of the potential risks associated with contaminants like heavy metals, pesticides, and solvents. Since hemp plants are phyto-remediators (they absorb and accumulate substances from the soil), if the soil isn’t properly tested, it can lead to toxic compounds being present in the plant and, consequently, in the final product.

– Working with local producers is a wise approach, as it allows for greater control over the production process, including testing the soil and ensuring the use of good agricultural practices. This ensures that products are not contaminated with harmful substances and meet quality standards, Deegan shares. She continues:

– The price drop and market expansion, driven by mass production in countries like China and the U.S., has made CBD more accessible and affordable. While this is beneficial in terms of consumer access, the trade-off is that quality may suffer in some cases. The increased supply has allowed for higher doses of CBD in products, making them more effective without being prohibitively expensive. However, it’s crucial that brands and consumers prioritise quality assurance over price, as low-quality CBD could undermine the benefits that consumers seek.

– There’s also a significant distinction between synthetic and natural CBD. Natural CBD from hemp has a complex profile, including other cannabinoids and terpenes, which work synergistically to enhance its therapeutic effects—what is known as the entourage effect. Synthetic CBD, though chemically identical in structure, lacks this complexity and may not provide the same efficacy or safety, as your tests have shown. This is why natural CBD is often preferred in the wellness and cosmetic sectors for its holistic benefits.

– In conclusion, while the rise in demand for CBD has created an opportunity for more affordable products, the focus should remain on quality and transparency in sourcing. Working with trusted, local producers and prioritising natural, full-spectrum CBD will ensure that consumers benefit from the full therapeutic potential of the plant.

Can you share a forecast for the CBD industry?

– As of 2025, it continues to evolve rapidly, shaped by shifting consumer behaviors, regulatory updates, and broader macro trends.

– Consumer preferences are increasingly driving the development of the CBD industry. Key trends include:

– Health and Wellness Focus

• Natural and Organic Products: Consumers are becoming more health-conscious and are leaning toward natural, organic, and plant-based remedies. CBD fits perfectly into this trend as a natural product, and there is increased demand for certified organic CBD products, as well as transparency around sourcing and extraction methods.
• Preventive Care: CBD has been embraced by people looking to improve their well-being through preventive care. Rather than waiting for ailments, users incorporate CBD into daily routines to manage stress, anxiety, inflammation, and sleep issues.
• Mental Health Awareness: Rising mental health concerns post-pandemic have led to more consumers exploring natural remedies for anxiety and depression, with CBD seen as a safer alternative to pharmaceuticals.

– Product Customisation

• Personalised CBD: Many consumers are seeking personalised CBD formulations based on individual health profiles. This includes the combination of CBD with other cannabinoids—CBG, CBN—or natural supplements to target specific concerns like sleep, pain relief, or focus. DNA-based personalised formulations are an emerging area where products are tailored to a person’s genetic predispositions.

– New Consumer Segments

• Mainstream Adoption: CBD has shifted from niche markets to more mainstream consumer bases, including working professionals, athletes, and elderly populations looking for alternatives to traditional medicine.
• Older Demographics: Older generations, particularly those aged 50+, are becoming significant consumers of CBD due to its potential benefits for chronic pain, arthritis, and insomnia, and an increasing openness to alternative treatments.

– Increased Demand for Convenience

• On-the-go Products: Consumers are opting for convenient, ready-to-use CBD formats, such as CBD beverages, gummies, and capsules, rather than oils or tinctures. The demand for CBD-infused snacks and drinks has risen sharply in line with the overall trend towards convenience in consumer products.

When it comes to wider industry trends, Deegan highlights the expansion into functional and specialty products and cannabinoid diversity.

• Functional Beverages: One of the hottest trends in the CBD industry is the growth of CBD-infused beverages. These include functional drinks like CBD-infused water, energy drinks, or adaptogenic beverages where CBD is combined with other functional ingredients like mushrooms or nootropics. The appeal lies in the convenience and ease of consumption compared to tinctures or topicals.
• Beyond CBD: The market is seeing diversification beyond just CBD. Minor cannabinoids like CBG (Cannabigerol) and CBN (Cannabinol) are gaining attention for their unique properties, such as pain relief or sleep aid. Brands are leveraging these compounds for targeted effects, creating more niche products that go beyond broad-spectrum CBD.

CBD companies, she continues, are increasingly looking at functional and adaptive wellness, combining cannabinoids with other wellness trends like nootropics (brain-enhancing supplements), probiotics, and vitamins to create products that offer multiple health benefits beyond just relaxation or pain relief.

Topical Applications and Skincare

• CBD Skincare Boom: The use of CBD in skincare and beauty products has grown significantly. CBD’s anti-inflammatory and antioxidant properties are attractive for consumers seeking relief from skin issues like acne, eczema, and general inflammation. CBD beauty is being positioned alongside established natural skincare brands, targeting consumers who are wellness-driven.

Sustainability and Transparency

• Eco-conscious Consumers: Sustainability is a significant consideration. More consumers demand sustainably farmed CBD from regenerative agriculture practices. There is also increasing interest in low-carbon or zero-waste packaging.
• Transparency and Testing: The trend toward full transparency is a response to consumer concerns about product quality, sourcing, and dosage accuracy. Companies that provide third-party lab test results and clear labeling about CBD potency, THC content, and ingredient sourcing are winning consumer trust.

Pet Products

• CBD for Pets: Pet owners are now turning to CBD for animals to address issues like anxiety, arthritis, and pain in pets. The demand for CBD pet products has surged, especially for older pets or those dealing with chronic health issues.

For macro and regulatory trends, we’re heading towards normalisation and legislation.

• Decriminalisation and Global Legalisation: Legal changes in multiple countries are further normalising CBD. In the U.S., the FDA has been gradually setting more comprehensive guidelines around CBD usage, but some ambiguities remain. As more states and countries legalise both CBD and THC products, the broader cannabis market is growing. European countries and Canada, in particular, are making strides toward further opening the market.
• Global Markets: CBD legalisation continues to expand globally, particularly in countries like Mexico, Germany, Australia, and South Africa. Each region brings its regulatory challenges, but global trade opportunities are increasing as restrictions loosen. Latin America and Europe have become attractive new markets for CBD brands, especially as regulations catch up.

Consolidation and Corporate Entry

• Corporate Expansion and M&A: Major pharmaceutical companies, big wellness brands, and beverage companies are entering the CBD market. With increasing consolidation, smaller players are being acquired by larger corporations looking to leverage established brands, or join forces to scale production and distribution.
• Pharmaceutical Influence: There is increased interest in pharmaceutical-grade CBD for clinical trials and therapeutic applications. Companies are investing in medical-grade CBD formulations for use in prescription medications, especially for conditions like epilepsy, anxiety, and pain management.

Data and Research-Driven Approach

• Scientific Studies: As more clinical research is conducted on CBD’s efficacy for specific conditions (sleep disorders, pain, anxiety), there is greater confidence in its therapeutic potential. New scientific data is playing a critical role in winning over healthcare professionals and more cautious consumers. The rise of personalised health data is helping brands deliver customised CBD regimens based on individual needs.

E-commerce Boom and Digital Transformation

• Online Sales Dominance: CBD’s continued growth in e-commerce is fueled by the shift toward direct-to-consumer (DTC) models. E-commerce platforms have made it easier for smaller CBD brands to flourish, allowing them to reach a global audience. However, advertising restrictions remain an issue on platforms like Google and Facebook, pushing brands to invest in content marketing, SEO, and influencer partnerships.

Retail Expansion

• Mass Retail and Specialty Stores: More mass retailers are stocking CBD products, from grocery chains to wellness-focused specialty stores. In 2025, CBD products have moved from niche headshops to the shelves of mainstream grocery and pharmacy chains, although compliance with local regulations remains a key challenge in some markets.

Lastly, within technological innovations, the CBD industry is looking at advanced extraction techniques, such as Nano-CBD.

– Nano-technology is being used to create water-soluble CBD and increase bioavailability. Nanoemulsion technology allows for quicker absorption and longer-lasting effects, making it particularly popular in beverages and cosmetics, Deegan explains. She adds:

– Blockchain is increasingly being employed to create end-to-end traceability for CBD products. This appeals to consumers seeking detailed information on the source of their product, from cultivation to sale. The use of blockchain is also helping brands ensure compliance with evolving regulations.