Navigating the Middle East’s Hemp Cosmetics Market

While drugs like marijuana are illegal in the Middle East, and the region enforces a zero-tolerance drug policy, CBD-infused skincare products have been legal since 2021. JUANA is the first pioneering CBD-infused skincare brand in the region, with a mission to revolutionize the way consumers in the Middle East perceive, produce, and use CBD-infused products. Since launching nine months ago, the brand has seen over 40% monthly growth, a 14x increase in sales value, and 85% repeat orders from its customers, underlining its undeniable product-market fit.

Just ahead of a hugely attractive second round of funding, BeautyMatter had the opportunity to speak with French-Syrian co-founder Yann Moujawez about how he’s navigating the tough, regulated market that is the Gulf Cooperation Council (GCC) and what he thinks the future holds for hemp-based cosmetics in the region.

JUANA is the first CBD-based skincare brand in the Middle East. Can you tell us what inspired you to start it and where the idea came from?

JUANA was inspired by a vision to bring the benefits of CBD to the Middle East. My journey began when I saw a gap in the market for clinically proven, high-quality, natural skincare solutions that promote wellness and vitality. As a former strategy consultant with The Boston Consulting Group (BCG), wellness became a priority in managing my busy lifestyle. And I sought out products that were clinically proven to improve my overall health and wellness while emphasizing pure and natural ingredients. This led me to explore the potential of cannabinoids to balance the equation between clinical efficacy and purity and natural purity to create the highest quality products. With a family deeply rooted in the medical field, consisting of physicians and surgeons, I had a unique advantage in understanding and accessing the compound from a medical perspective—and access to that knowledge fueled by passion and drive to develop JUANA’s innovative line of CBD skincare products.

What made you decide to enter the CBD cosmetics market in a region with such strict cannabis regulations?

My motivation came from a desire to offer powerful wellness products in the face of strict regulations in the local community. The benefits of CBD for skin health and overall well-being gave me a strong impetus to pioneer this market in the Middle East. Although it was incredibly difficult, I believed that our local community would greatly benefit from access to such products that would improve their health and well-being. As such, at JUANA we are committed to doing and investing whatever is required to make this happen.

Have you encountered any challenges or obstacles along the way and how did you overcome them?

The journey included overcoming regulatory hurdles and educating stakeholders on the safety and benefits of CBD. Overcoming these challenges required perseverance, comprehensive compliance, and robust educational initiatives. We also devoted significant resources to building a solid foundation and providing clear evidence to support all of our claims. Rigorous clinical efficacy studies in France and Germany, prestigious certifications, verifications, and awards, and initiatives to build active and strong support from the medical community were some of the key actions we prioritized to establish a solid foundation.

Could you help us understand how you develop your products, including sourcing raw materials and ensuring compliance with regional regulations?

The philosophy that guides our formulas remains the same: to achieve optimal clinical efficacy and health-improving results without compromising formulation integrity and safety. Efficiency and health safety are two key metrics that we are absolutely passionate about. This means incorporating and sourcing the highest quality active ingredients, such as cannabinoids and hyaluronic acid complex, while maintaining a zero-tolerance policy towards potentially harmful ingredients. You could say we have a fairly minimalist approach to our formulas — and we believe there is no need for a long list of unnecessary ingredients. We also work exclusively with best-in-class researchers, formulators and global dermatological institutes to ensure that our products achieve peak performance. In addition, strict adherence to regional regulations and rigorous compliance underscore our commitment to efficacy and consumer safety.

While the Middle East has a zero-drug policy, CBD-based products are legal as of 2021. However, there are no other cosmetic brands in the region that include CBD in their products. What opportunities do you foresee for CBD-based products in cosmetics and other sectors in the region?

JUANA was a pioneer in introducing and developing CBD in the GCC market. We are the first brand to be legalized and authorized to sell such products in the region, an achievement we are incredibly proud of and feel a great sense of responsibility for. This fuels our commitment to continue to invest, build and lead the future of cannabinoids here and around the world.

How do you educate your customers to understand the benefits of CBD skincare and how important is education when it comes to building and growing a brand like JUANA?

Education has always been at the heart of everything we do at JUANA. It’s a key part of building trust and raising awareness. Sharing knowledge and educating our customers about the benefits and safety of CBD is a priority for us. This mission goes beyond just selling our products; we want to help our consumers understand how CBD-infused products can improve their overall wellness journey. Additionally, we have also gained strong support from the medical community and have established partnerships with esteemed global wellness institutions such as The Lanserhof in Germany and the UK. These alliances have provided us with a great platform to responsibly educate our audiences.

How has the response to your products been in the region so far and how do you think the situation will develop in the future?

The response has been really positive so far, reflecting the growing acceptance of CBD’s health benefits in the region. The future definitely looks bright and I believe that as we increase awareness, the demand for natural, effective skincare solutions like JUANA will continue to grow.