The Steep Price of Wellness: Why Is CBD So Expensive?

CBD oil isn’t magically exempt from the invisible hand of supply and demand. Considering hemp was prohibited before 2018, it’s easy to understand how there isn’t enough hemp to meet the surge in demand—hence the exorbitant price tags.

Although supply and demand explain a great deal, it’s not the only answer to our overarching question. CBD companies also have to invest a lot of money in high-tech extraction technology, lab tests, and licenses, jacking prices up further.

To find a definite answer behind CBD’s increased costs, we must address many factors that currently impact the CBD industry.

We Still Don’t Know Exactly How to Grow Hemp

Another issue that affects hemp supply is the fact we don’t really know how to grow it. To be more precise, we don’t know how to grow it well.

Though hemp has been cultivated for centuries, agronomists weren’t even allowed to study it until a few years ago. We’re going to need far more research on hemp’s growing patterns before farmers can fully understand how to maximize CBD production.

Until we get more data from agronomy departments, farmers may struggle to achieve a consistently high yield. Hemp cultivators still have many years of trial and error they need to go through, which could cause fluctuations in CBD supply.

Also, bear in mind that our ancestors did not grow hemp for CBD. For most of human history, hemp was grown for use in textiles, pottery, or as a food source. Growing hemp specifically for a high-CBD count is a contemporary phenomenon, which means there’s still a great lot we don’t know about ideal grow techniques.

However, we do know that growing high-CBD hemp requires more space, time, and care than growing fields of industrial hemp. So, farmers have to spend more money on growing, drying, and curing their plants, which drives up the price of CBD oil.

CBD Extraction Is Extra Expensive

On top of all the costs associated with hemp cultivation, manufacturers have to spend a pretty penny on extraction technology. Plus, since it prevents solvent residue in their final products, they often spend a great deal on CO₂ extraction machines. While CO₂ is considered the holy grail of extraction, it’s also one of the most expensive procedures. If you see a ‘CO₂-extracted’ label on a CBD oil, you should expect to pay a premium price.

Also, keep in mind that extraction technology is only half of a manufacturer’s investment. After all, those machines don’t run themselves! Every CBD manufacturer needs to pay a team of highly skilled technicians to transform hemp buds into CBD oil.

Costly COAs Could Drive Up CBD Costs

If a CBD company wants to be taken seriously, it needs to invest in professional lab screenings. As you could imagine, frequently sending CBD products to third-party labs is pretty costly.

In the best-case scenario, lab certifications are an added expense that can drive up a CBD product’s price. On the opposite extreme, there are severe cases where these reports spell great financial trouble for manufacturers.

If a lab report shows THC percentages just a hair above 0.3 percent, companies cannot legally send their products into the market. This added risk discourages many people from even starting out in the CBD game, which, again, contributes to the supply problem. Hopefully, as we better understand hemp seed genetics, the risk of slightly elevated THC content will be minimized.

While we’re talking about lab tests and COAs, it’s worth pointing out that many CBD companies also apply for other accreditations to bolster their brand name. A few popular labels that companies spend big bucks on include being USDA organic, non-GMO, and fair trade certified. Believe it or not, there are even a few Kosher CBD products! It costs a lot of money to get any of these official labels on a CBD bottle—hence a higher price tag.

Lack of FDA Oversight Fuels CBD Stigma

It’s not just CBD’s association with cannabis that gives it a bad reputation. Indeed, a big reason consumers are wary about buying CBD products is because there’s no FDA oversight.

Unfortunately, there have been many bad actors in the hemp industry who pedal products with little to no CBD content. Since these snake oil salesmen want to make a killing, they’re going to jack up the prices, which could contribute to elevated CBD price tags.

Under these circumstances, honest hemp companies have to overcompensate for lax federal oversight, by paying extra fees on detailed labels, authoritative packaging, and lab reports to ensure customers their CBD oil is the real deal.

As you can see, there are many ways to answer the question of “why is CBD oil so expensive?” Nonetheless, just because CBD is usually pricey, doesn’t mean you can’t find some pretty amazing CBD oil deals out there.

Of course, whenever you’re analyzing a new CBD company, you should verify that they have reliable accreditation, lab reports, and trustworthy reviews. If the CBD oil you’re looking into smells more like fish oil (metaphorically or literally), then please research other companies.

Here are a few strategies you should keep in mind when you’re trying to assess a CBD oil’s affordability:

• Divide the price of your CBD product by the total milligram count. This will give you a sense of how much you’re spending for each daily dose.
• CBD tinctures tend to offer the highest potency for your money, especially if you take them sublingually.
• Search on review sites for any info you can find on your chosen company’s reputation.
• If there’s a business you trust, consider following their social media accounts to receive updates on surprise sales.
• People who don’t mind smoking or vaping hemp might want to give high-CBD flowers a try. Since these buds don’t go through an extraction procedure, they are often cheaper than tinctures, oils, and edibles.