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1 June 2022

What Factors Affect CBD Oil Price?


CBD oil prices are still high despite its rising popularity. Premium companies like
cbdMD usually set prices for their products because their products go through like organic farming, clean extraction methods, and third party testing. In this article, we’ll take a close look at the factors that affect CBD price.

Hemp Farming

Since the legalization of hemp in 2018, farmers have faced new challenges, especially those switching from cultivating fruits and vegetables. Hemp farming requires intensive labor and constant monitoring of the THC levels of the plant. Moreover, harvesting is a manual process that requires many hands to complete the task.

 

Finally, plants with high concentrations of THC must be destroyed, leading to huge losses for farmers. This and other challenges increase the cost of cultivating hemp. The high cost of growing hemp is reflected in high CBD oil prices.

 

Surprisingly, hemp is a very popular product in the U.S., which means it's less expensive to use American hemp than to import hemp from Europe. As the hemp industry keeps on expanding, CBD costs will reduce.

 

1.     Extraction and Refining technology

The process of extracting CBD from hemp is intensive and requires specialized equipment. CBD is extracted from hemp using two primary methods

 

  • Dissolution in ethanol
  • Supercritical carbon dioxide extraction (CO2 EXTRACTION)

 

While ethanol extraction is less expensive than co2 extraction, they both result in safe products. Carbon dioxide extraction method is costly and leaves no room for mistakes. Therefore, small batches of CBD oil that result from this method are generally more expensive. Manufacturers pass these costs to the consumer, making CBD oil prices rise.

 

2.     Distribution and Marketing

CBD manufacturers suffer from regulatory issues, and the stigma surrounding hemp. CBD brands have low marketing opportunities both online and offline. Social media platforms like Facebook don’t allow the advertising of CBD products on their platforms. This makes it difficult for retailers to reach potential customers and causes high advertising costs as retailers look for expensive alternatives.

 

3.     Research, Development, and Quality Control

CBD oil requires extensive research and development practices in its production process. Moreover, CBD oils and capsules also undergo extensive testing in independent testing facilities to ensure safety and efficacy. Moreover, CBD must meet the requirement of less than 0.03 THC to be licensed for commercial purposes. These practices require experts who are usually expensive to hire. Ensuring the quality of CBD products requires constant funding, which increases CBD oil prices.

 

How Much Does CBD Oil Cost?

Prices on high-quality CBD tincture by CBDfx can range between $0.09 and $0.17 on average. However, depending on your budget, you will always find a high-quality CBD product at a reasonable price. Keep in mind that high-quality CBD oil doesn’t necessarily mean a high CBD price.

 

Bottom Line

Many factors affect CBD oil prices but how much is CBD oil? It varies. Premium brands price their products a little bit higher than the market standard while offering many options to save money on their oils.

 


Michael Levin is a CBD enthusiast, a researcher, writer and editor in the cannabis space, experienced CBD user and educator. He believes CBD can help improve our overall health and wellbeing.

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