FILE PHOTO: A sign is seen outside a Dollar General store in Chicago, Illinois, U.S. May 23, 2016. REUTERS/Jim Young

(Reuters) - Discount store chain Dollar General Corp DG.N said on Tuesday it would sell cannabidiol (CBD) cosmetic products in more than 1,000 stores in Tennessee and Kentucky, as demand for the products grows.

CBD is a non-psychoactive chemical found in cannabis plants that is known to ease anxiety and other ills without causing a high, and is becoming popular with millennials.

The demand has led several companies, including French luxury goods maker LVMH's LVMH.PA Sephora beauty chain, ULTA Beauty Inc ULTA.O and American Eagle Outfitters Inc AEO.N, to sell CBD-infused creams and lotions.

Dollar General’s CBD assortment is limited to topical cosmetic products, including bath bombs, bath salts and face masks, and it has no plans to provide ingestible or edible CBD merchandise, the company said.

“Our decision to offer CBD products is based on customer interests or demands,” Dollar General Chief Merchandising Officer Jason Reiser said.

The company is planning to expand the availability of its products to seven more U.S. states by spring 2020.