Although you can find some really cheap cannabidiol products, CBD items are still considered expensive substances. There are a lot of factors that drive their price up, and even if you see an affordable product, there is a good chance it will be of lower strength or quality.
In order to answer the question of why is CBD so expensive, we have to start from the beginning. In this article, we will analyze all the agricultural processes and production methods that drive the price of medicinal hemp up.
Why is CBD so expensive: The 7 reasons
So, why is CBD so expensive? Here’s 7 good reasons for that:
1. Farming issues
While you may think that hemp is really easy to grow, it is quite the opposite. Even if you’re an experienced farmer, you will have various issues with this species.
One of the biggest issues for newbies is the fact that you need to constantly control your hemp. Otherwise, you’re facing a possibility of major crop loss. In order to harvest hemp, you will need a combine.
You will also need a covered space where you will put hemp to dry out.
2. Extraction and refinement equipment
Extraction and refinement equipment can be so expensive that there are a lot of hemp manufacturers who simply prefer outsourcing the process through the white label and private label services.
Nowadays, most companies opt for expensive CO2 extraction. This process produces the best results and highest-quality products, but the equipment is much more expensive compared to the equipment needed for other processes.
Keep in mind that you need to buy expensive equipment just so you can extract the basic, full-spectrum CBD oil. If you wish to distill this oil or infuse it into some other products, you will need additional equipment, which would drive the costs even higher.
3. Various marketing problems
Although more and more companies are becoming receptive to CBD products, they are still not that common. You can’t buy them in any store, which is a bit problematic for companies that want to spread their influence quickly and overtake the market.
But, this problem pales with all the marketing issues that a hemp manufacturer has to deal with. Producers have a limited number of options if they wish to advertise their products, which is why the price of marketing is usually higher compared to some other industries.
4. Manufacturing practices and product control
Not only do you need pricey equipment, but you also need an educated workforce that would manage this equipment. Producing medicinal hemp can be very expensive in terms of salaries, which is another reason why CBD is so expensive.
Unfortunately, it doesn’t stop there. If you wish to have a reputable brand, you will also need to pay for third-party lab testing. Although this is great for consumers, as they can learn more about your substances, it is another thing that will make a dent in your pocket.
5. Most consumers don’t understand the prices
Another reason why prices may seem so high is that you’re probably not buying the cheapest product. What do we mean by that? CBD substances are packaged based on their dose. Items with higher doses tend to be significantly cheaper when compared to smaller dose products.
In other words, it is much cheaper to buy 1 bottle of 1000mg CBD oil than 2 bottles of 500mg CBD oil. People tend to buy the cheapest product just so they can try it out, and afterward, they tend to stick with it. Needless to say, this can be costly in the long run.
6. Problems with banks and financial institutions
Financial institutions are just starting to accept the concept of medicinal hemp. Unfortunately, there is a long way to go till the market becomes stable. One of the issues that come from this is the fact that it can be really hard to take a loan.
Even if your CBD company is eligible, the interest rates tend to be really high. But, there is more to this. Generally speaking, if you have a hemp or cannabis company, you will have to pay more money for the same type of service.
7. Lack of regulation and monitoring
Lack of regulation and monitoring imposes another layer of issues. First of all, there are all sorts of products labeled as medicinal hemp. As if that wasn’t enough, companies are able to sell these low-quality substances as if they’re CBD items.
In other words, they can ramp up the prices as much as they want. So, until we get a better regulatory frame and monitoring procedures, the consumers will get scammed by these scrupulous organizations.
Will CBD prices become lower over time?
The positive thing about the cannabis and hemp industry is that it’s developing with each passing day. Both from the regulatory, legal standpoint and from the point of consumer acceptance, CBD is slowly becoming mainstream. In other words, the processes are becoming easier and easier.
For example, we are certain that CBD substances will become available in many more retail and wholesale stores. It will become easier to take a loan, and there is a good chance that the price of equipment will go down.
Lastly, a constantly increasing number of companies should lead to a reduction in prices.
How to determine if you’re paying too much for a CBD product?
Luckily, there are a few tricks that will help you determine if a CBD product is overpriced:
- Consider the CBD content. A lot of products present themselves as “medicinal hemp” or “CBD items.” When you scratch the surface, you realize that these items have traces of CBD, and may not be derived from hemp.
- Some items are so weak that they won’t even make a change. You might have to take half of the bottle just to notice a minor impact. Check concentration before making a purchase.
- You should always buy products made from organic hemp. Furthermore, CBD oil should be extracted with the CO2 extraction method.
Now that you know the answer to the question why is CBD so expensive, you will be able to make a much more educated purchase!