Reasons Behind High Price of CBD & Its Products
The price of CBD products out there must have made your eyes go round the first time you went shopping. What is the reason behind the high price? Read on!

If you are like us, the price of CBD products out there made your eyes go round the first time you went shopping. It’s a fact that surprises many. You see a tiny bottle with 200 mg of CBD oil going for as much as $300, and you can’t help gawping. It’s crazy, we know.

But, as they say, there is a method to the madness. That one-ounce bottle of CBD might look like it should cost the price of a movie ticket, but in reality, a lot goes into creating it. And, a lot can turn out to be costly. The processes used from the ground right to the shelves are usually labor-intensive and expensive.

After you are through with this article, you’ll understand why some top-tier brands are brazen enough to charge top dollar for their CBD products. You will also get why some CBD products seem too cheap to be true—and perhaps they are.

Now, let’s take a look at some of the reasons why CBD is so expensive.

Reasons Behind High Price of CBD & Its Products
Two CBD oil bottles @layman_gaugercbd

1. High Demand For CBD and Its Products

CBD’s popularity has skyrocketed in recent years. The demand for this new and almost miraculous remedy has been steadily rising without any signs of slowing down any time soon.

Let’s look at some of the facts on the ground. The CBD industry is relatively new; the product seems to be working wonders and is hugely promising with unbelievable future projections. Everyone is using CBD from regular folks to celebrities, and the demand is crazy. Basic economics says that when the demand is high, the supply will be high.

But apart from the demand driving the prices up, it has also attracted a lot of companies.

According to an article on Forbes, the CBD industry could be worth $20 Billion by 2024. Now, who doesn’t want a piece of that pie?

The sheer rate at which companies are hopping into the CBD business makes stabilizing the price of CBD products difficult. It’s like, we know the benefits, but we are still trying to figure out how much value to slap on them. It seems like it will take time and a balance of demand and supply before we see price stability.

Reasons Behind High Price of CBD & Its Products
A bottle of CBD oil @deni.kou

2. Agricultural Processes and Regulations

The costs of CBD production start in the farms, long before the hemp seeds are planted. The legal requirement for growing industrial hemp where CBD is sourced from dictates that the THC content should be 0.3% or less. This calls for a highly controlled environment. And building and maintaining such an environment is not cheap.

You have not added the seeds, required farming equipment, labor, regional licenses, etc. The financial strain from these necessary practices tends to add up fast even before the hemp is out of the farms.

Some manufacturers do grow their hemp as well as extract CBD themselves. This might make the process a little cheaper (theoretically), but it is not always the case.

Not too sure between the differences of hemp oil and CBD oil? Check out “Main Differences Between CBD Oil & Hemp Oil You Should Know” for more info.

Reasons Behind High Price of CBD & Its Products
A CBD oil bottle held over a pool @shopsolubleoils

3. The Extraction Process

So, there are two basic methods used to extract CBD from hemp. They are ethanol extraction and C02 extraction.

The ethanol extraction method is the less expensive of the two. Because of the low cost involved in ethanol extraction, most low tier brands prefer to use it to reduce their production cost.

In ethanol extraction, the hemp is dipped in ethanol or any other solvent used to separate it from cannabinoids. The ethanol is then evaporated. CBD products made using this technique are less potent and may still contain traces of solvent. Trying to remove the traces of the solvent would add some extra expense to the company.

When companies chose to use ethanol extraction, they sacrifice potency for cost. In some cases, it’s a great trade-off, but in other cases, it’s not. If you want a potent CBD product, then the ones made by ethanol extraction aren’t for you.

On the other hand, C02 extraction is the most popular method and also quite expensive. In this technique, CBD oil is extracted from hemp by the use of pressurized carbon dioxide.

In CO2 extraction, the temperature is controlled, which makes it easier to target specific cannabinoids and ensure full-spectrum properties are also extracted. CBD extracted in this way is usually very potent. If you love potency in your CBD, then CBD extracted in this way is perfect for you.                                                                                                       

4. Intensive Labor in CBD Production

It might come as a surprise, but producing CBD demands a lot of labor even outside of the farm. While it is easy to make CBD products at home, it’s another beast entirely to make CBD products in a factory.

Processes such as C02 extraction are labor-intensive and time-consuming, and the result is usually a small amount of CBD. Although a lesser amount is produced, it is generally of very high quality. Even the relatively simpler ethanol extraction still requires expertise to carry out.

Add to that the chromatography process required to remove traces of THC like in broad-spectrum CBD, and you are looking at more demand for skilled labor.

And skilled labor doesn’t come cheap. Hiring enough people with enough knowledge of how to safely operate the equipment is imperative.

Find out “How to Flavor CBD Oil And Make it Tastier” for ways to make that CBD oil more appealing to your liking.

Reasons Behind High Price of CBD & Its Products
CBD oil bottle in a planter @pawcbd

5. Third-Party Testing and Why It’s Important

Testing is expensive, but it is necessary before hemp is extracted for CBD. Let’s talk about why hemp needs to be tested for purity and concentration.

Hemp has this special ability for absorbing toxins, pollutants, and heavy metals from the soil it grows in. This is why the agricultural phase has to be controlled. You are looking at a plant, that when grown in areas with contaminated soils, it automatically absorbs the impurities. This means that any oil extracted from contaminated hemp will also contain those contaminants.

So, third party testing is necessary as it will determine a product’s purity, as well as CBD levels. Without these tests, there is no telling what risky substances you will be blindly ingesting into your body.

However, this process of quality and safety control increases costs, which in turn results in a high price of CBD products.

6. Product Distribution and Operational Costs

While the manufacturing phase covers the bulk of expenses in CBD production, distribution, and operational costs also play a part.

 For instance, CBD manufacturers need to have in-house compliance personnel. Their work is to ensure that CBD products meet the legal requirement in a particular area. These strict regulations in the production process tend to increase expenses.

The company also needs to figure out how to get the product to you, the consumer. This distribution cost can drive the price of CBD and its products even higher.

Be sure to not miss our piece on “7 Things to Consider When Shopping For CBD Oil” for tips to consider when looking for your bottle of oil.

Reasons Behind High Price of CBD & Its Products
CBD bottle held by hand @purethrive_essentials

The next time you are out there shopping for CBD products; don’t let the prices affect your decision that much. We have already seen that there are factors that influence these prices, and that cheap is probably not the best option after all. All these factors translate into reasonably high prices for quality CBD products.

Thank you for reading with us today! Let us know in the comments below if you’ve also noticed how CBD products may have higher looking prices. Be sure to check out related content to boost your CBD knowledge like “Can You Use CBD For Menstrual Cramps?” or even “Did You Know That CBD Can Act as a Hangover Cure?“. Check ’em out!


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