Why Is CBD so Expensive?

Why Is CBD so Expensive?

Let’s say I am offering you my services for a price way below the average offer that is usually paid for the job I am offering, wouldn’t you doubt my skills and prefer someone else who asks for a higher compensation? I’ll bet you will. Same thing goes I guess when buying CBD oils. You’ll want to make sure that you are getting premium quality so you wouldn’t settle for a cheap price but dubious origins.

But if you are really looking for a bit more affordable pricing, you may check a few CBD online shops such as OhBeyond to compare the price range of these products from one CBD online shop to another. Then you can compare the price against other sources and choose the price that you are most willing to pay.

Meanwhile, if you are seeking additional information about the reason why the CBD oil price is skyrocketing, this article may help provide some answers for you and we can start by discussing the process in which a CBD oil is manufactured.

Understanding the relationship of the manufacturing process to market pricing

If you are familiar with a marketing pricing strategy, you’ll get the idea that the best price doesn’t always mean to be the cheapest price. Effective pricing strategies are applied in order to ensure that a product gets the most profitable price range for its worth. A product’s manufacturing process greatly influences this pricing strategy.

The CBD manufacturing process undergoes four major phases. Let’s discuss it one by one so that we can relate it to pricing later on.

Phase I. Cultivation

Basically, the cultivation of the CBD oil starts with growing the plant where the compound is extracted from, the cannabis. Owing to that simple fact that the cultivation of hemp plants was only legalized by the Farm Bill in 2018, there is not much opportunity in mass production of cannabis for commercial use at this time. It doesn’t help as well that the demand for the CBD products, not just oils are skyrocketing nowadays. Remember the basic economic rule of supply and demand that when the supply is low but the demand is high, the price has nowhere to go but up.

Phase II. Processing and Extraction

In general, a single marijuana plant contains only as much as 2% of cannabidiol (the compound where CBD products are from). This is basically saying that only this much can be extracted from one plant and it is not really that much. Worse is the fact that no matter how much labor one puts into it, no one can force a cannabis plant to produce more CBD than its genetics could allow. Come to think of it, this is probably the reason why the industry prefers to raise industrial hemp vs marijuana for CBD isolation and extraction and hemp is expected to produce much higher CBD content.

Phase III. Distillation and Refining

After the very precious oil has been extracted from the source, it is then distilled to separate the hemp extract from the food grade ethanol that was used in the second phase of manufacturing CBD oils. Only a few facilities in the world can use this food grade ethanol so it adds up to the price margin that we are already very much concerned about.

Then it enters the most important step in the manufacturing process, the refining stage. This is the part where we make sure that even the most minuscule trace of tetrahydrocannabinol (THC) is removed from the extracted oil. This is the compound found in hemp and cannabis that makes a person hallucinate when consumed, the one that puts users “on a high.” associated with the plant.

Refining involves a strict technology to remove the unwanted compounds from the oil before they are completely refined to produce the highest quality product that has zero THC, and 100% CBD oil available. It is for this reason that high quality CBD oil is a lot pricier than the average on, Basically, the more refined the oil is, the less likely that you’ll get high from using it, so you would really want to pay more, right? Anyway, just to be sure that you’re getting your money’s worth in buying the expensive CBD oils, always ask for certificates of quality before you purchase one.

Phase IV. Isolation

Finally, when the refined CBD oil enters the isolation phase, it will still undergo a series of rigorous testing in an in-house laboratory for quality purposes. This is to make sure that all unwanted compounds are eliminated to ensure that the end product is pure and organic. Third-party labs on a monthly basis are also an option to verify and confirm that all products meet testing standards. With the complexity and the technology put into action to ensure the quality of a CBD oil increases its price value way up high.

To sum up, here are the main factors why CBD oil is so expensive:

  • Market’s supply and demand – there is a high demand for the product but the manufacturing process is just starting so the supply does not meet the current demand yet.
  • Processing and extracting cannabidiol from marijuana produces a small portion at 2%, from hemp a bit higher but with the expenses of just completing this process are very high, the price value of the end product also increases.
  • Refining uses state-of-the art technology to ensure that the end product is pure and of high quality.
  • Isolation involves rigorous testing, not to mention the third party labs that need to be done on a monthly basis are expensive to maintain.

Checklist to assess the value of CBD products

As mentioned earlier, to ensure that you’re getting your money’s worth in buying truly expensive CBD oils, you have to be extra vigilant in choosing where to buy your CBD oils from. Here are some tips to consider:

  • If you are purchasing online, make sure that the website is legitimate. Look for the domain name and About section of the page. Make some research before trusting the site.
  • If you prefer a third party e-commerce platform, read the reviews and look for clues. Check seller information before clicking add to cart.
  • Lastly, always ask for certificates of quality before you purchase one. If the product has a label or packaging, make sure that it provides information about the process of manufacturing the product that you are buying.