American Eagle Outfitters Inc will start selling cannabidiol (CBD)-infused personal care products in the United States later this year, entering a fast-growing market for daily consumer goods made with cannabis derivatives.

The apparel retailer will sell CBD-infused lotions, muscle balms and aromatherapy products developed and supplied by Green Growth Brands Inc, the Toronto-headquartered cannabis company said on Thursday.

The market for cannabis-based personal care is already crowded. French luxury goods maker LVMH's Sephora beauty chain has been selling CBD-infused products since 2018 and ULTA Beauty Inc launched sales of similar products earlier this year.

Green Growth said American Eagle is expected to start sales of the products in nearly 500 stores and online in October.

This is the third major wholesale deal for Green Growth since the passage of the U.S. farm bill in December. It legalized the cultivation and sale of hemp, a cannabis plant different from marijuana.

CBD, which is derived from hemp, is a non-psychoactive chemical found in cannabis plants that is reputed to ease anxiety and other ills without causing a high.

(Reporting by Uday Sampath in Bengaluru; Editing by Sriraj Kalluvila) ((UdaySampath.Kumar@thomsonreuters.com; within U.S.+1 646 223 8780, outside U.S. +91 720 478 6795; Reuters Messaging: UdaySampath.Kumar.thomsonreuters.com@reuters.net))