Why Is CBD So Expensive? Your Questions, Answered
When looking at various CBD products, one question that has to cross your mind is, “why is CBD so expensive?’. It is a common question with multiple answers.
Since legalization in the US, the CBD industry has come a long way. CBD is helping people ease various symptoms, including anxiety, pain, inflammation, seizures, and stress. It is available in various forms, such as oils, gummies, creams, salves, vape pens, and capsules.
However, when browsing through different CBD formulations, it is easy to notice that they are costly, especially if you are a beginner.
You have every right to ask why is CBD so expensive, and you are not alone in that boat. Continue reading for details on why CBD prices are not as wallet-friendly as you would like them to be
What Is CBD In The First Place?
Before we delve into why is CBD so expensive, let us discuss what CBD is first. For beginners, CBD stands for cannabidiol. It is one of the many substances present in the cannabis Sativa plant.
However, CBD manufacturers make it from industrial hemp, a variety of the cannabis herb rich in cannabidiol and has only 0.3% THC or less.
THC (tetrahydrocannabinol) is the cannabinoid that makes people feel “high”. CBD does not have that effect. The amount of THC in industrial hemp is too low to alter the normal functioning of your mind.
There are three types of CBD: full-spectrum, broad-spectrum, and isolate. If all you want to consume from hemp is CBD, buy products with cannabidiol isolate. However, full-spectrum CBD contains much more besides CBD.
It incorporates secondary cannabinoids such as CBC, CBN, CBG, and little amounts of THC. It also has terpenes, flavonoids, and fatty acids from hemp.
On the other hand, broad-spectrum CBD contains everything present in full-spectrum CBD except for THC. Nonetheless, both types of CBD provide an entourage effect, which enhances the effectiveness of cannabidiol.
While some CBD brands offer products with the three types of CBD to ensure every user gets what they need. However, some offer two or even one types of CBD, which can be limiting for buyers.
Nevertheless, the CBD market has suitable products for everyone. What matters is purchasing high-quality CBD items, and whichever CBD you choose depends on your preference and perhaps job requirements.
Cannabidiol continues to grow in popularity. CBD has become a household name in the U.S. More research has been done about it, though more studies are necessary regarding its full potential to alleviate various health conditions. Media houses are talking about it, and doctors are chipping in on how it can help ease diverse symptoms.
There is more information about CBD online from reliable experts. Besides, the CBD market is offering a variety of quality products for users to choose from.
The other factor that has made CBD popular is the fact that it is a natural remedy, as long as you purchase products made from organic components. CBD comes with few but rare side effects, and most people tolerate it well.
Users appreciate that CBD provides relief without the harsh effects that some prescription medications cause. As more people have used CBD products, user reviews from verified buyers are all over the internet about how CBD has helped them deal with various symptoms.
Therefore, those who are yet to use CBD have more reasons and information on why they should consider trying the hemp product.
So Why Is CBD So Expensive?
There are several reasons to explain why CBD is costly. Here are a few of the main reasons.
It Is A Relatively Young Industry
First, CBD is a new industry, and like any new sector, things tend to be expensive in the beginning. Manufacturers are few, hemp growers are limited, and the production process can be expensive. That is not all. There is a limited supply of CBD products, yet the demand is high, which contributes to pricy CBD.
Besides, industrial hemp with 0.3 % THC became legal at the federal level when the 2018 Farm Bill was signed into law on December 20, 2018. That is relatively recent, which means legal CBD is still a young industry that has a long way to go. Even with federal legalization, a few states are yet to legalize hemp and its derivatives, such as CBD, which presents a challenge in those areas.
Hemp production comes with its share of challenges. If a farmer is growing hemp for the first time, machines for harvesting are expensive, which causes a financial strain. Manual harvesting is tedious and requires intensive labor. That raises the cost of production, which translates to the high prices of CBD products.
After harvesting, a brand needs sheltered paces for drying the plant material and proper conditions for the process, which is another investment. Growing and harvesting hemp is involving and a huge investment, no wonder the high CBD price tags.
Extracting CBD Is A Complex Process
Deriving CBD and other components from hemp is a complex procedure. It requires expensive equipment if a manufacturer is to make high-grade, safe CBD products.
The supercritical CO2 method is the best way to remove CBD and other extracts from hemp. However, it is an expensive process. Some leading CBD brands use ethanol instead, as it is less costly.
The extraction process itself needs experts and researchers to ensure it runs smoothly. These professionals have to be paid for their services. However, avoid CBD items made using solvents such as butane, as they are harmful to your health if they end up in the CBD you buy.
After a manufacturer extracts CBD from hemp, there is more to be done. The product requires quality control and lab testing. In-house tests are not enough.
A CBD formula worth using should have gone through third-party testing at a reputable, certified lab. The lab technicians confirm the components the manufacturer claims to use in their CBD products.
They also check for pesticides, microbials, herbicides, chemical fertilizers, and heavy metals in the CBD for safety, purity, quality, and consistency purposes.
Marketing Expenses Are High
CBD brands sell their products through their websites and physical stores in areas where CBD is legal. Some manufacturers do not have CBD shops and only sell their items through their websites.
Besides, e-commerce platforms such as Amazon do not offer CBD products, considering the legal issues surrounding CBD and the fact that the FDA does not regulate the industry yet.
This limits a brand’s reach to more users. However, excellent CBD manufacturers adhere to current good manufacturing practices (cGMP)to ensure users get high-quality CBD. These challenges mean CBD companies have to spend more money to reach more CBD consumers, contributing to the high cost of CBD.
There is one more reason to explain why is CBD so expensive. Financial institutions view CBD companies as highly risky, so brands do not get the financial support they might need to boost their business.
If the demand for CBD is high, the manufacturing process is labor-intensive, extraction equipment is expensive, and banks do no support CBD brands, the price has to be high.
Since few banks and processing institutions are currently allowing CBD sales, processing fees for CBD transactions are sometimes 5 times greater than other products.
The consumer has to bear the cost for CBD businesses to make returns. It only makes business sense. As production increases, systems are optimized and CBD becomes available on more platforms, prices will certainly drop.
How To Save Money When Buying CBD Products
In as much as CBD is so expensive, there are a few ways to save some money and buy more products.
For example, some brands offer discount programs for various groups such as those in the military, disabled users, veterans, and first responders. Be sure to ask the brand you’re looking to buy CBD from if they have any first time customer discounts or other discounts available.
Subscription plans can also save you money.
Your orders auto-ship, which saves you time, and you never run out of CBD. You can also buy bundle packs, as they are cheaper than single products. Consider following CBD brands on social media and sign up for their newsletters. That way, you always know when there are any deals to take advantage of.
Buying Quality CBD, No Matter The Price
Now that we’ve answered the question, ” why is CBD so expensive?”, it does not mean that any product you come across is worth buying. The CBD market has some unprofessional people selling mislabeled products or those that do not contain any CBD at all.
Therefore, you have to be careful when making purchases. Keep in mind the following factors to ensure you only spend money on high-grade, safe products.
Ensure that the CBD product consists of CBD made from organically grown hemp, which is free of pesticides and other chemicals. Check the CBD extraction method the manufacturer utilizes as well.
CO2 is the best and safest way of making CBD from hemp. Do not spend money on an expensive product made using harmful extraction solvents. Third-party testing also matters, so always ask your provider for their lab results.
That way, you know what you are ingesting from an independent party. The lab report should be easily accessible on the brand’s website, which fosters transparency.
Check the other ingredients in the CBD product, such as carrier oil, coloring, flavor, and sweeteners. Ensure these ingredients are all-natural, as artificial elements endanger your wellbeing.
Despite CBD being so expensive, there is hope that prices will lower soon. As the CBD industry grows and the manufacturing process becomes cheaper, the cost of buying CBD will decrease. Research has shown that CBD can help manage various conditions.
It is safe as long as you use a product with safe components made using the right methods. CBD is worth trying if other treatments are not effective.
However, if you are on medication or have a health condition, speak with your doctor before you begin using CBD.