Why Is CBD So Expensive?

Have you ever wondered, “why is CBD so expensive”? You’re probably interested in buying a CBD product such as CBD oil, and then you look at the price tag and wonder if it’s worth it.

There are a few things that you need to know as a consumer so that you understand the value of CBD products and don’t get ripped off.

Most people do little research on CBD and end up buying products that are poor quality and then blame it for not working.

Luckily for you, you can learn from these common mistakes so that you don’t end up:

  • With an overprices and low-quality CBD product
  • Complaining that CBD doesn't work
  • Possibly harm your health

Today I’ll be sharing with you four reasons why CBD is expensive, and the steps to take to avoid overpaying on “premium products.”

What is CBD explained

CBD is a cannabinoid that exists in the Cannabis plant, along with hundreds of others. A cannabinoid is a chemical that provides different effects on the body. We have something called an Endocannabinoid System, which is activated when we consume Cannabis.

The effects that cannabinoids have on the body

Each cannabinoid has different effects on the body

When people hear cannabis, they automatically assume that it’s marijuana.

However, there are two types of strains in the cannabis plant, hemp and marijuana. These are two completely different things.

Hemp contains higher levels of CBD and lower levels of THC, which provides therapeutic effects and promotes well-being.

Marijuana has higher levels of THC and low levels of CBD. It’s is used for some medicinal benefits, but let’s be honest; it’s mostly for getting high.

One thing you want to keep in mind is that CBD is non-psychoactive. So that means CBD alone will not get you high at all.

When you’re buying a CBD product, it will derive from Hemp, hence why you see ‘Hemp’ on the labels. Hemp is also legal in every state as long as it contains less than 0.3% THC, but marijuana is still illegal in some states.

CBD products

There are all kinds of CBD products that you can get, which all do the same thing but work slightly differently. The four main types of Hemp products are:

  • Vape liquids
  • Oils & tinctures
  • Edibles
  • Topicals

Each product has different bioavailabilities which impact the body differently. Bioavailability refers to how much CBD is absorbed into the bloodstream when consumed. This is important because the more CBD that is absorbed, the stronger the effects will be.

Not all CBD products are made equal.

The pricing of CBD products will vary based on:

  • The brand
  • Quality
  • Ethics

You’re wondering what ethics has to do with it.

Well, as CBD is an unregulated marketed by the FDA, many CBD sellers are marketing their products to mislead customers. They will have low-quality ingredients and possibly harmful substances and still charge high prices.

The production of high-quality CBD products costs a lot of money, which hurts the pockets of sellers. So what they do is they will use the cheapest stuff possible and use marketing tactics.

You’re soon going to discover some tactics on how sellers try to charge more than what it’s worth.

Hemp vs. Hemp Seed Oil cost

explaining the differences between hemp seed oil vs cbd oil

This is a major problem going on right now.

Before you buy any CBD products, you must be aware of the differences between Hemp vs. Hemp Seed Oil. If you get the wrong thing, you could end up wasting a lot of money.

Hemp

Hemp is a strain of cannabis that has high levels of CBD. The whole plant is used when harvesting and extracting the cannabinoids.

Hemp Seed Oil

Hemp seed oil is an oil that comes from only the seeds of the hemp plant. This has little to no CBD, even in high concentrations. Why would you only want Hemp Seeds and not the whole plant extract?

I’ll tell you why. It makes more money for the seller. Hemp seed oil is a lot cheaper to sell, so the profit margins are higher for them. It’s even worse when some sellers claim that they are selling premium CBD oil, but the main ingredient is Hemp seeds.

The differences matter!

You need to beware of the labeling when buying CBD products. If it shows high concentrations of Hemp Seed Oil, then it will have little effect on the body because it has hardly any CBD.

It’s also vital that you look at the ingredients because Hemp Seed Oil can be considered CBD oil if it has small amounts of CBD. If the shop tries to convince you that Hemp Seed Oil is better than CBD Oil or that there are no differences, then you’re being hustled.

Types of CBD

types of cbd explained

Types of CBD products have an impact on the quality and overall effects.

When the Hemp plant is harvested and extracted, the first process is to remove all the cannabinoids.

The two main types of CBD that provide the best effects are full-spectrum and broad-spectrum. CBD isolate is the least effective, and you’ll find out why in a second.

Full-spectrum

If you were to go on a Hemp farm, Hemp would appear as a flower, similar to its sister Marijuana. However, when making CBD products, it has to be extracted into an oil form to get a concentrated amount of CBD.

Full-spectrum is the result of extracting all the cannabinoids into a concentrated form. It also contains all the flavonoids and terpenes that are present in the whole plant. Hemp only has 0.3% THC, which is included in the cannabinoid profile of full-spectrum Hemp.

When you have a full-spectrum CBD product, it should be more expensive in general because it offers the best quality possible. All the cannabinoids work in synergy to give you optimal effects.

Broad-spectrum

Full-spectrum is the first step to every extraction process. It then goes through other methods to either:

  • Isolate certain cannabinoids
  • Remove existing cannabinoids

Broad-spectrum CBD products are quite common on the market now. Broad-spectrum means that THC is completely removed, but all the other cannabinoids stay the same.

Broad-spectrum is less effective than full-spectrum, but the prices are usually around the same.

CBD isolate

CBD isolate is removing everything but CBD. CBD isolate is less effective when other cannabinoids are absent. In larger doses, especially, the effects don’t increase and become pointless after a certain point.

It’s the cheapest to make, which makes it profitable for sellers. Some sellers will use CBD isolate as their main ingredient and label it as a premium product. That’s why it’s important always to read the ingredients to understand the value of the product.

How much does CBD oil cost?

how much cbd oil cost

CBD oils are the most popular products when it comes to getting concentrated forms of Hemp.

Most CBD oils have concentrations of 300 to 750 mg, although this could range from less than 100mg to 2,000mg+. On average, the value of CBD, according to milligram across the enterprise, is around $0.05/milligram (low end) and $0.25/milligram (excessive-end).

  • Low-value CBD oils generally fall between 5-10 cents per mg
  • Mid-variety prices are 11-15 cents
  • Higher-end oils price 16 cent per mg or higher

Given those varying consistent with-milligram costs, a bottle of CBD oil can be priced anywhere from $10 or less to $150 or higher. 

A good indicator of value for money is the cost per milligram. 

Understanding the value of CBD

value of cbd explained

The value of CBD products changes depending on different things.

Farming quality

Things like organic farming will yield better quality products. If the company has certifications from Hemp authorities, this shows that it has been legally cultivated.

Ingredients

Better quality ingredients will have a higher price tag. What you want to look for is:

  • Full-spectrum / whole-plant extract
  • Broad-spectrum
  • Hemp (not hemp seed oil as main ingredient)
  • Cannabis Sativa

These are general terms that describe what it’s been extracted from.

Terpenes

If the CBD product has additional terpenes, then it’s more valuable because it plays a role in the effects of the plant.

People are using this plant to aid their well-being, so the effects are important.

Potency

The potency is one of the biggest things that affect the price. The compound CBD is what people are looking for when it comes to the effects. A 500mg bottle of CBD oil will always be more expensive than a bottle of 200mg of CBD oil if it’s from the same brand.

Higher potency of CBD means the effect will be stronger. The value lies in the amount of CBD itself.

Testing

If the product is lab-tested, it verifies the potency of the product and impurities check. This makes it more valuable because you know that the product is legitimate.

Without a lab-test, there is no way of knowing that the labeling is correct or if the brand can be trusted.

Why is CBD so expensive?

why is cbd so expensive explained

So why is CBD so expensive? It comes down to several reasons.

CBD products vary in potency and purity. Many companies promise an incredibly pure product, which they believe can justify their ridiculous prices.

Don’t be fooled; a few brands charge high charges now not because of an amazing product, but because of advanced marketing.

The four main things that impact the price of a CBD product are:

  • Growing the plant itself
  • Farming expenses
  • Manufacturing cost
  • 3rd party lab testing

Growing CBD strains is challenging

Hemp is a crop that requires land or space to develop. It also requires an environmental setup and takes time to grow the plant.

Keep in mind that there are legal issues during this process compared to other traditional crops. There’s also high taxes from the government to grow Hemp.

Before you can even grow Hemp or anything Cannabis-related, you would need a license, which is another expense. Places like the UK is tough also to get a permit because only a few people can obtain one.

Expensive for Hemp farmers

The license is just the first step to even growing the plant, which is already hard to get in the first place. They are already looking at the following expenses:

  • Taxes from the government
  • Equipment for cannabis cultivation
  • Energy bills

As there are only a few people who have licenses for growing Hemp, the cost of CBD products are higher for this reason. Less supply means consumers will need to pay more.

There is little incentive for farmers because the cost is so high, and their profit margins get lower and lower.

Manufacturing CBD products are not cheap

Extracting cannabinoids from Hemp requires expensive equipment and workers that know how to use it.

The most popular ways of extraction are Co2 machines. They use extremely high levels of heat and pressure to pull the cannabinoids out of the plant. This machine is costly, and the workers are paid a lot to know how to use them.

There is another step in the extraction process called Winterization. This is used to separate certain cannabinoids before it’s manufactured into a CBD product.

3rd party lab testing

Sellers do not require testing, but it’s the only way to verify the potency and impurities in the product.

By showing lab results to customers, it provides credibility and trust. However, not many customers know about the importance of lab tests and why every CBD product should be tested.

These tests are another expense, which is why a seller may price their products a lot higher.

Is CBD worth the price tag?

is the price of cbd worth it?

So why is CBD so expensive?

Well, it’s not always. Some brands charge what it’s worth, but some don’t.

For the brands that sell premium products, they won’t always have a fancy label, but they will meet all the requirements that go into making a good product.

However, inferior quality products may be at the same price as a premium product.

Frequently Asked Questions

Why is CBD so expensive?

Why are some CBD oils more expensive?

Is CBD oil worth the price?

Will the price of CBD come down over time?

Nabrissa Simpson

I'm the co-owner of CBDTornado. I live in Star, Idaho and CBD oil has got rid of my anxiety and muscle pains. I take 50mg a daily and haven't looked back since.

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