CBD is a popular, holistic choice for people struggling with pain, inflammation, and sleep problems, but many first-time users wonder, why is CBD so expensive? Some people might think it’s a good idea to purchase the cheapest CBD they can find, but high-quality CBD oil products take time and money to produce, and it’s worth it to purchase more expensive products.
Since CBD is a new product, the price of CBD is subject to price fluctuation and inflation, but that doesn’t mean it will always be expensive!
Read on to learn some of the complicated reasons why CBD oil is expensive, and whether or not it will stay that way.
Why Is CBD So Expensive?
The answer can’t be solved with just one answer. In fact, the reason for CBD’s high price is actually due to a variety of reasons, including novelty, the difficulty of growing and producing the product, and the number of fees that growers and distributors have to pay.
Thankfully, many of the reasons CBD is so expensive are only temporary, which means prices for this product can be expected to lower as time goes on.
It’s a New Product
One of the biggest reasons why the cost of CBD is so expensive is because it’s a new product. The production of hemp only became legal in 2018, and like any product that’s only recently hit the market, CBD oil products are experiencing some price inflation.
It will also take a little while for growers and distributors to streamline the process of manufacturing and selling CBD. Right now, farmers are still learning the best way to produce hemp without incurring a lot of costs, and it might take a few years for the process to become cheaper and easier.
This will surely drive the cost of CBD down.
Until then, CBD oil prices need to be high enough that growers and distributors can make a profit.
Hemp Is Difficult to Grow
Many farmers are transitioning to growing and selling hemp, but despite the increased popularity of this product, it presents its own agricultural challenges. Firstly, switching over to a new crop will always result in new expenses.
For example, the most efficient way to harvest hemp is with a combine. However, farmers who have previously grown crops that don’t require combines, such as strawberries, can’t afford to purchase a combine right away.
As a result, they need to hire people to help harvest the hemp, which drives up prices.
It’s also important to note that hemp requires more time and labor to grow. Farmers need to inspect their crop closely as it grows.
After hemp is harvested, though, there are still expenses to take into consideration. To produce CBD, you need to extract the cannabidiol, which is a difficult and expensive process on its own.
The processors of CBD oil need to use either ethanol or supercritical carbon dioxide (CO2 extraction). The extraction and refinement process requires special machinery and takes a long time – which all drives up CBD oil cost.
Sure, CO2 extraction is (by far) a superior method of extraction, but it isn’t cheap. You really get what you pay for in this industry.
CBD Is in High Demand
Another reason why the price of CBD oil is so expensive, is that it’s in high demand.
In fact, according to Grandview Research, “The global CBD market size was estimated at USD 2.8 billion in 2020 and is expected to reach USD 3.5 billion in 2021.” That is a MASSIVE market size.
People want their broad spectrum CBD, or full spectrum CBD, and they want it now.
This product only became legally available in 2018, and since then, a lot of research has proven that it’s a wonderful, holistic option for people suffering from a variety of problems, including chronic pain, inflammation, and sleep problems.
Naturally, however, high demand for any product will drive up the price, especially since it takes time and care to produce.
The basics of economics tell us that as the demand for pure CBD increases, the cost of CBD will increase, too.
Growers and Sellers Pay Extra Fees
One thing people need to keep in mind, is that growers and sellers incur a lot more fees than they would with most other products. Pure CBD oil and other hemp-related products are subject to a lot more government influence and inspection.
Unfortunately, fees are also a part of this process.
The government includes a lot of regulatory fees, such as licensing fees, which can cost up to $50 per acre every two years.
Furthermore, CBD rich hemp crops are taxed much higher than other products, contributing to the overall price.
Another thing that adds to the cost is the need for CBD companies to have a third party lab analysis on every product sold. These lab reports produce a certificate of analysis, which shows the exact cannabinoid content in the product.
The labels of excellent CBD products will always have a QR code on them. This is scannable via a smart phone to a third party lab analysis.
There’s a lot more to a third party lab result and CBD oils, but we won’t get into them here.
It’s Difficult to Distribute
The history of cannabis criminalization has resulted in a bad reputation that makes the product more difficult to sell. CBD oils, and other CBD products, have earned a bad reputation over the years, and this has made a huge impact on distribution.
This is mainly because a vast majority of people believe that hemp and marijuana are the same thing, which is WRONG!
Both plants are part of the cannabis plant species, but hemp and marijuana are definitely different plants.
The criminalization of marijuana meant the product was in much higher demand on the black market, driving up prices.
It’s a vast improvement that efforts are being made to legalize it across the United States, but the fact remains that the criminalization and prohibition of these products have not only caused a large number of people to be imprisoned for nonviolent crime but it’s also given these products a bad reputation.
Attitudes are slowly shifting when it comes to cannabis-related products, but many large companies view selling cannabis-related products as a liability and refuse to carry them in stores.
Sites like Amazon have even prohibited the sale of CBD products altogether. As a result, CBD oil has to be distributed on a much smaller scale.
Large companies usually swallow distribution costs like shipping, which lowers the price of CBD oils for customers. Smaller companies, however, can’t afford this and have to factor distribution costs into the end price of their products.
Not All Products Are Created Equal
It makes sense to charge more for well-researched products that contain high-quality ingredients. Many sellers of CBD charge so much because it took a lot of time and money to produce the result.
That being said, the CBD market has it’s fair share (to put it mildly) of shady companies.
In other cases, however, poorly made CBD oil products are sold for high prices because people know they can get away with it.
Some companies are taking advantage of the high demand for CBD products, as well as the fact that information about such products isn’t widely distributed.
There’s a lot of misinformation about cannabis-related products, and some people use this as a way to falsely advertise and sell products that don’t even contain much (if any) cannabidiol.
On the other end of the spectrum, many companies, including New Phase Blends, are dedicated to creating quality products.
Due to all the factors listed above, however, the price involved with creating premium, pure CBD oil takes a lot of time and care.
Since there isn’t as much widely distributed research surrounding these products, companies also have to do a lot of research of their own.
This ensures the creation of safe products that work well. While the end product is worth all the extra expenses along the way, it does result in a pricier product.
Is It Worth It to Buy Cheap CBD?
It’s possible to find CBD products for much cheaper in some locations, but it’s usually not worth purchasing.
Growing and manufacturing high-quality CBD oil takes time and money, which is why the product is so expensive in the first place.
Cheap CBD is produced by cutting corners, and these products are usually highly diluted.
A lot of people will use false advertising to convince customers that their “hemp extract” will help with pain or sleep problems, when in fact the product doesn’t even contain any cannabidiol.
Many companies are currently selling hemp seed oil, or cannabis sativa seed extract, and claiming it is CBD oil. This is a pure scam.
Hemp seed oil contains a lot of healthy fats, but no cannabinoids, like CBD.
If you’re looking for high-quality CBD, then you’ll have to accept that it will be a little pricey. Otherwise, you’ll end up purchasing a product that contains little to no cannabidiol, and it might even contain other ingredients that you probably won’t want to put in your body.
New Phase Blends CBD might be more expensive than some of the cheap CBD oil you can find at gas stations or e-commerce sites, but you can guarantee that the products you buy from us are made with time, effort, and proper research.
Is CBD Getting Cheaper?
If you’re disappointed by the current price, then don’t worry! Many of the factors that increase this product’s price are only temporary.
The startup price of growing hemp is steep, which means farmers have to charge more. Over time, however, farmers will end up incurring fewer expenses, and they can sell their hemp to other companies for less money.
The difficulties of processing and manufacturing a new product will also be smoothed out over time, and in turn, the price will decrease. Overall, CBD products will become cheaper as demand and growing and manufacturing prices decrease.
Many customers wonder, why is CBD oil so expensive? These products take a lot of time and money to manufacture, so while they might be pricier than you’d like, it’s well worth it for a high-quality product. Many of the reasons CBD oil is so expensive are only temporary, though.
Since CBD is a recently legalized product, manufacturers and distributors are still working on streamlining the process.
Furthermore, the recent legalization means these products are in high demand, which naturally drives up the prices. Over time, however, we can expect the price of CBD to lower into something more affordable for everyone.