The CBD market has exploded over the past few years, leading to new CBD products hitting the scene on an almost daily basis. Where CBD was virtually unheard of only five years ago, today there’s everything from CBD tinctures and topicals to countless edible options, personal care products and much, much more.
If you’ve done a bit of research, you’ve probably noticed the price of CBD isn’t exactly consistent. It can fluctuate wildly from company to company, even when milligram for milligram they seem to be selling the exact same product.
So, what gives? How much does CBD oil really cost? And how are these prices determined in this highly unregulated market?
As a consumer interested in CBD, you’ve got a right to know why CBD costs what it does, as well as what to look for when determining different price points. When it comes to CBD products, quality really does matter — and going for a more affordable option isn’t always your best bet.
And now for the million-dollar question…
How Much Does CBD Oil Cost?
If only there were a straight answer. Take a look around at different CBD companies and you’ll find prices all over the map. Finding the best price for CBD isn’t easy, especially if you’re purchasing for the first time. Some companies will sell the same amount of CBD oil for up to five times the cost of others, making it really difficult to gauge the “average” price of CBD.
What is known is that CBD can be expensive. According to researchers, manufacturers, retailers and consumers in the CBD space, there are a few reasons that were offered time and time again. These include: greed, limited consumer access, limited patient access, farming and production practices, extraction costs and the high cost of bringing a new product into such an unregulated market.
What Determines the Price of CBD?
Keep in mind the reasons those familiar with the market gave for the high price of CBD. They all help determine how much you pay for CBD. Here we’ll take a look at a few of them, as well as other factors that might determine the price of CBD.
Hemp will grow pretty much anywhere, and until very recently it was still prohibited to grow in the U.S. Because of this, many hemp CBD products available today come from hemp plants grown overseas (typically Europe and China). The problem with this is that hemp absorbs whatever is present in the soil it’s cultivated in, a process known as phytoremediation. In fact, hemp is so adept at removing toxins from soil that it was planted around the Chernobyl nuclear disaster site to do just that.
What does this have to do with CBD oil? Oil extracted from plants grown in toxic soil could contain these toxins and pollutants in condensed amounts. This doesn’t exactly make for the safest CBD oil. And because the CBD market is so unregulated, manufacturers aren’t required to inform consumers where the hemp to make their products was grown or if it contains any contaminants.
According to Dr. Ethan Russo, neurologist, ethnobotanist and one of the leading medical cannabis researchers in the U.S., “God knows what toxins are in the hemp processed in countries like China or Romania, which don’t have the same laws about pesticide use that we have. I don’t trust any of it and I don’t think anyone else should either.”
Quality, state-of-the-art, sustainable hemp farming is key for high-quality CBD products. At Joy Organics, for example, every product we create goes through a process that begins with hemp grown in nutrient-rich soil using 100% organic growing practices. Not only does this enhance the quality of our product, but it also ensures that our products are safe and regulated in an otherwise unregulated market.
Extracting CBD from hemp is a complicated process, and extraction isn’t exactly cheap. The real cost of extracting CBD from hemp might blow your mind. Nick Tennant, founding partner of Precision Extraction Solutions, a company that offers extraction services, planning and equipment, says, “The vast majority of lab startups that we consult fall into the $400,000-$800,000 budget range.”
The high cost of extraction has a lot to do with the overall price consumers end up paying for CBD oil and other CBD products.
Bringing a Product Into an Unregulated Market
There’s a high price to pay for bringing an unregulated product into the consumer market, something consumers often end up paying for. With the legal cannabis industry still considered “criminal” to the powers that be, CBD companies are taking somewhat of a bigger risk than other wellness-related products that are regulated and considered completely legit.
Third-Party Lab Test Results
In a market that’s so unregulated, it’s vital you choose a company that provides third-party lab test results. Think about the importance of hemp grown in quality soil and what could be present in your CBD if it isn’t. Pesticides, insecticides, mold, bacteria and other unwanted intruders could be lurking in your CBD oil.
Here’s where third-party testing comes in. Companies that offer third-party testing do so for a few reasons. For one, it ensures that you, the consumer, are getting the high-quality product you deserve. For another, it offers complete transparency of that company. With readily-available third-party lab results, you know they’re offering what they claim.
It costs money to test products in an independent lab. And until CBD is regulated and you know what you’re getting each and every time your purchase CBD, the cost of third-party testing is going to be passed on to the consumer.
We’re proud to say we offer third-party lab results on each and every batch of CBD we use to create our products. You’ll find them easily accessible because honestly, we’re not a company to claim we’re the best without being completely transparent about what we have to offer. Let our lab results speak for the quality of the products we provide. We’re always here to answer any questions you might have on lab testing results, as well.
The Cost of CBD: Understanding a CBD Basis Price Point
When it comes down to it, determining the price of CBD comes down to the number of milligrams of CBD you’re purchasing. You could say this is the basis for which all CBD oil is priced.
Broken down, it looks like this:
Cost of oil per gram/milligrams of CBD=cost per milligram of CBD
On average, the cost of CBD per milligram across the industry is around $0.15/milligram (low end) and $0.25/milligram (high end).
This being said, and knowing what you now know about the what determines the cost of CBD, as well as the importance of third-party testing (that lets you know exactly the potency you’re getting), if you find an oil that sells for $45/gram but there are no lab results to tell you exactly what the product is, you might want to reconsider.
What Causes CBD Prices to Fluctuate Like They Do?
The largely fluctuating price of CBD oil is largely determined by an unregulated market, not to mention the production and extraction prices that are involved in its production. It’s assumed that when the industry itself becomes more established, more regulated, and changes are seen in supply and demand, that the cost of CBD oil will begin to stabilize.
Final Thoughts on the Cost of CBD Oil
The cost of CBD oil is something that’s regularly fluctuating and can become extremely confusing when trying to decide on the best product to fit your needs. At Joy Organics we do our best to keep our prices competitive, while still offering the highest quality CBD oil money can buy.
Our 1000mg CBD Oil Tincture, for example, sells for $99.95, making the price right around $0.10/milligram.
We understand that CBD can be expensive, which is why we work to keep our prices set at an industry standard, something that can be difficult (to say the least) in such an unregulated industry. We hope this has served to answer any questions you have about how much CBD oil costs and why it’s priced the way it is.