If you were ever into a CBD store scanning through the cannabidiol items in stock, you might have definitely noticed the price differences between the items even if they are of the same type. What could be the reason for the sharp price differences you notice? Why are some cannabidiol products so expensive? Let us find out.
Here are some of the reasons CBD products come at expensive rates.
Expensive Extraction Processes
Solvent extraction, oil extraction and carbon dioxide (CO2) extraction are the three most common CBD extraction methods employed by manufacturers. CO2 extraction requires expensive equipment, thereby increasing the expenses associated with the manufacturing of CBD products. Cannabidiol items made by employing CO2 extraction tend to cost more than products made using other extraction methods. Due to the high purity level guaranteed by CO2 extraction, reputable companies prefer the extraction method to other methods.
Although the extraction costs reflecting in the final price of CBD product is justifiable, additional costs caused by overspending on hemp farming shouldn’t really be added to the final price because the manufacturer is at fault here. Hemp crops grow naturally without requiring much care. Some farmers are not doing a good job by implementing farming techniques that do not suit cost-effective farming.
The production costs of CBD manufacturers go up due to ineffective and overpriced extraction machines. The companies then pass this over to consumers who are forced to pay for their inefficiency.
Source Of CBD
Comparing the price of hemp CBD with that of CBD extracted from expensive cannabis flowers is one way to judge its value. For example, CBD companies that make tinctures, balms and other CBD products may increase the prices if they are extracting CBD from hemp flower buds rather than the hemp stalk. The CBD from the flower bud part of cannabis cost two to four times as that of as CBD extracted from hemp stalks.
If the CBD product is full spectrum, then it will have some amount of THC(less than 0.3%). It costs 2.25 cents per milligram to manufacture THC. The cost of THC will also reflect in the final price of your cannabidiol product.
CBD companies have to get their products tested by third party labs for pesticides, chemicals, microbes and heavy metals. The tests also give information about the exact amount of each cannabinoid in the CBD product. The prices for testing are also part of the overall manufacturing cost.
CBD retailers use attractive packaging as a tool to command a high price for their products. Just because a cannabidiol product comes in attractive packaging does not mean the product is actually worth what you pay. It is possible that CBD manufacturers are trying to sell off a poor quality product using impressive packaging as a cover.
Although it is true that you could be tricked into trusting the promises on the quality of CBD products on seeing them coming with attractive packaging, it is also important to realize that packaging is a step so important when it comes to CBD. Exposure to heat, light and moisture can lead to the disintegration of CBD, resulting in the loss of its potency. Hence CBD oils, tinctures and other products come in transparent glass bottles. The costs involved in the packaging step will definitely reflect in the final price and it is justifiable.
Imbalance Between Supply And Demand
The knowledge of the potential of CBD and the growing number of satisfied users are creating a great demand for it in the market. However, as of now, the supply seems to be struggling to catch up with the demand. Hemp farming for CBD was only legalized in 2018 after the US Farm Bill was passed. Before the Farm Bill, CBD was regarded as a Federal Controlled Drug substance. CBD hemp farming hasn’t expanded to such a level that it can meet the growing demand.
Greed Of Manufacturers
CBD craze resembles a gold rush. Some CBD companies are entering the market with just one intention, making profit. They introduce low quality CBD products into the market and charge a high price for them. The prices of many cannabidiol products are too high when compared to the costs involved in their manufacture.
Poor quality products and extremely high prices that cannot be justified result from the largely unregulated nature of the CBD market. Advancements in medicine and technology will hopefully bring a much-needed change.
Customers have to do due diligence to ensure that the cannabidiol products they buy are of high quality. Study the product label, check the third party lab results and read customer reviews before you go ahead with the decision to buy a CBD product. If a brand is not transparent about its ingredients list or manufacturing processes employed, it is better to go for some other CBD brand.