Why Is CBD Oil So Expensive

why CBD is so expensive

Have you come across a few CBD oil products and noticed the hefty price tag? Has this left you puzzled and questioning 'why is CBD oil so expensive'?

There are several reasons for this. One of them being that you may be getting ripped off. If you don't understand the process behind it you might be paying way more than you need to.

So in today's article, I will be sharing with you 7 reasons why CBD oil can be pricey.

By the end of it, you will know how to spot overpriced CBD oils. I also have some recommendations if you are trying to buy high-quality CBD oil on a budget.

Top Questions Asked About CBD Oil [2021]

1. Growing Hemp Isn't Easy

To make CBD oil, it all starts with growing the plant itself. This requires farmers to do a lot of manual work.

As Hemp has only been federally legalized recently due to the 2018 Farm Bill, farmers are still new to a lot of the challenges of growing hemp. A lot of these farmers usually grow food crops such as fruits and vegetables. Growing hemp for them is an upgrade from their current skill set which takes time.

Constant Inspection For THC

The first challenge they face is constantly inspecting the plants during the growth cycles. When some plants produce more THC than the legal limit of 0.3% THC, they have to destroy these plants. THC is the only psychoactive cannabinoid in the cannabis plant that gives users that 'high' feeling.

Harvesting Methods

The second challenge they face is harvesting hemp itself. If a farmer is used to harvesting fruits and veggies, expensive equipment is required or they will need to manually do it. Imagine harvesting a massive field of hemp flowers. This is not easy by any means.

Drying Process

So after growing and harvesting, the final challenge is the drying process. This requires large enclosed spaces and the right conditions to ensure proper drying.

All the challenges I've just mentioned thus far all contribute to that final price tag.

2. The Cannabinoid Extraction Process Is Another Challenge

co2 extraction production

Farming is one thing. This process involves everything I mentioned in step 1. When it comes to CBD flower, all that's left after drying is curing. After curing this can be sold as a CBD flower.

However, CBD oil is a hemp extract that results in highly concentrated cannabinoids. So this is another step that influences CBD oil cost.

Solvent Vs Solventless Methods

Hemp-derived cannabis can be extracted in 2 ways. Solvent or solventless. Solvent uses ethanol solutions and solventless methods use supercritical carbon dioxide (CO2 extraction method). CO2 extraction is a large machine that uses highly pressurized carbon dioxide.

When hemp is extracted using a solvent the end product is known as a CBD tincture. The price of CBD is significantly cheaper with this method. Solventless methods require large, expensive equipment which makes the cost of CBD oil a lot higher.

Full Spectrum

Both extracts that I've just mentioned are full-spectrum extracts. This means that both extracts contain all the beneficial cannabinoids and terpenes. These include the 2 major ones, THC and CBD, and the minor ones such as CBG and CBN. However, this extract can be refined into making 2 other types of extracts called broad-spectrum or CBD isolate (pure CBD). 

Broad Spectrum

Many people opt for a broad-spectrum extract that has THC removed. This type of extract is for people who are worried about drug testing. So this is an extra step in producing the final product.

CBD Isolate

CBD isolate is the cheapest to produce out of all of these. However, it's not as effective as the extracts considering it doesn't contain other cannabinoids and terpenes.

3. High-Quality Manufacturing Requires A Solid Investment


Companies that produce a high-quality product invest in good manufacturers' practices (GMP). This involves deep research, development, quality control, and testing.

Third-Party Lab Testing

When a company invests in GMP they pay for services that do third-party testing and evaluation. This means they pay for a team of highly educated and experienced laboratory workers to analyze their final product. By the end of it, they are given something called a Certificate Of Analysis (COA). This verifies the cannabinoid content and safety of use.

Companies that don't pay for these services are selling products that potentially have low cannabinoid content. Or even worse, it could be contaminated with things like heavy metals. Lab testing can cost a lot of money so some brands purposely avoid this to rack up their profit.

When it comes to buying CBD oil from a reputable brand, you want to look out for independent lab testing. They should clearly have a COA on their website.

4. Marketing & Distribution Is A Nightmare


distribution production

Distribution is one of the major reasons why CBD oil is so expensive. A lot of retailers see CBD as a potential liability. So stores like health and supplement stores either refuse to stock CBD products or limit selection. Even large e-commerce stores Amazon don't allow the sale of CBD products.

This creates a barrier between companies and retailers. Which then forces companies to rely on marketing CBD products themselves. More on this in a second.

Back to distribution. When large retail companies buy CBD products themselves, this reduces cost which then drives the final price tag down for consumers.



As I mentioned a second ago when retailers can't sell a CBD product they need to market the product themselves. Even that comes with challenges because most advertising networks restrict the promotion of CBD. This includes Google, Facebook, YouTube, and more.

Most CBD companies have to rely on organic growth and it makes it hard for them to really scale their business.

Can you see why all of this would influence the price of CBD oil? This is almost the worse business model to jump into if you're not a creative marketer.

5. Lack Of Financial Support

cbd oil is expensive and requires financial support

When starting any business, if you don't have capital you would need some sort of support. Whether it be a loan, credit, or some sort of crowdfunding.

A lot of banks and other financial institutions see hemp companies as a risk. Because of this, banks and credit services often charge more for their services. So some CBD companies may seek private investments. Investors want to make their money back so this can result in inflated prices.

6. Prices Are Misunderstood

prices confusion

When it comes to CBD oil, most people haven't got a clue about prices. On top of that, they don't think about long-term costs.

Here are some common mistakes people make:

  • Get the smallest concentration month after month
  • Not taking advantage of first-time/auto-shipping discounts, coupons

The cost of CBD is determined by mg. So the lower the cost is per mg the more value you're getting. Most people make the mistake of getting a small bottle because it's their first time. The smaller the concentration is the more money you will pay per mg.

So if you compare 300mg bottle it may cost $0.1 per mg but a 1000mg bottle may cost $0.06. The 1000mg bottle is cheaper because you're getting more CBD per mg and the bottle will last you longer. The whole concept is, pay slightly more upfront and it lasts you longer.

Another huge mistake people make is not taking advantage of discounts. They are there for a reason. If you get auto-ship discounts you can get sent the same product every month at a cheaper rate.

Hopefully, all this changes your perspective on how you see the cost of CBD oil. 

7. Purely A Scam

looking for scams

The CBD industry is not regulated by the Food and Drug Agency (FDA). This leaves doors open for scam artists to enter the market to make quick profits.

One of the best examples of how they do this is exaggerating CBD content for a low price. They lead customers on by making them think they're getting all this CBD for such a cheap amount. It just doesn't work like that. Yes, you might see a low price tag but you'll be paying for no active cannabinoids.

Down below I will explain 5 ways how you can spot a scam or low-quality product.

1. Disguising hemp seed oil as CBD oil

Hemp seed oil is an extract of the hemp seeds only. Whereas CBD oil is an extraction of the entire plant. The difference between the two is the active cannabinoids present.

2. Free Offers

This is also very common. A lot of companies will say "just pay for shipping and handling". All these people want is your credit card information so they can charge you hidden fees.

3. No Third-Party Testing

This is the biggest giveaway. If a company's products aren't tested then run as far away as you can. This is the only way to know the amount of CBD in their products. So testing is a must for companies to build trust with their customers.

4. No Trial/Money-back guarantee

At the end of the day, the whole point of buying CBD oil is to benefit from the compounds within it. If they don't offer any sort of money-back guarantee then why pay for something that didn't work for you?

5. Exaggerated Medical Claims

The research on CBD is still in its infancy stage. There are a lot of anecdotal claims but what some companies will try and do is claim it to be a miracle product. They'll use purposely use buzzwords to lure you into believing that CBD has some sort of secret medical benefit. CBD that isn't prescribed by a medical cannabis clinic is viewed as a supplement. One of the biggest reasons why people buy CBD oil is for overall health and wellness.


Whew. That was a lot to write. I hope you now understand why CBD oil is expensive and what goes into determining the overall price of CBD.

If you're looking for some high-quality CBD products that don't break the bank, take a look below.

Best Inexpensive CBD Oils

CBDPure (Full-Spectrum CBD Oil)


CBDPure is the best full-spectrum CBD product that doesn't break the bank. Their products are grown 100% organic, all lab tested, and come with a 90-day money-back guarantee. This is the longest trial in the entire industry and one of the most trusted brands.

Keep in mind that this product contains a small amount of THC. So if you're worried about drug testing take a look at the next product.

cbdMD (Broad-Spectrum CBD)


cbdMD is the best broad-spectrum CBD product on the market period. That means none of their products contain THC. Like CBDPure, all of their products are lab tested and they have other offers which cannot be ignored. Here's a list of what they offer:

  • Potencies ranging up to 7500mg
  • 60-day money-back guarantee
  • Auto-ship discounts (free shipping, huge savings)
  • They have military and disability programs that provide special discounts
  • Bundle discounts


Why is CBD so expensive?

A lot of things contribute to why CBD is so expensive. But a common reason is that a lot of CBD companies are looking for capital to invest in. Investors want to make their money back so prices become inflated.

How much should I expect to pay for CBD oil?

The average cost of CBD oil is per mg is between $0.07 to $0.150. The average price tag of CBD oil for a 300mg bottle is between $30 to $40. Larger concentrations are cheaper overall in the long run.

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