Why is CBD oil so expensive?

February 21, 2020 Bionativa

The benefits of CBD are already talked about on TV, radio, on the street, but its value is rarely discussed, except in the context of a too high of a price. Well, is CBD oil expensive? Why is its price not lower? You can read about the value of CBD, its production and marketing costs in this article.

The costs of growing hemp

The first cost that influences why is CBD oil so expensive is the cost of growing hemp. In this case, it costs the most to provide the right conditions for growth and… time. Cannabis does not grow as fast as it may seem, and obtaining CBD from immature crops does not make much sense. Also, you need to hire employees who will take care of the plant, rent a suitable place, buy equipment and develop a good extraction method, which is a topic for a separate paragraph. It is also necessary to have a license to grow and purchase high-quality fertilisers.

CBD extraction

To understand why CBD is expensive, you should be aware that the cannabidiol extraction method affects not only its quality but also its price. The best CBD oils are made via CO2 extraction. This method is considered the most effective and results in the purest oil from plant material. It is even called the “gold standard” in the CBD industry, although it must be emphasised that not all oils are extracted in an aforementioned way, because another popular method is extraction using liquid solvents. The said method doesn’t provide as pure CBD, but it has one advantage – it is cheaper.

Extraction via CO2 is, unfortunately, the most expensive method, and this affects the price of the product. However, in this case, it can be said with certainty that this is the cost by which CBD oil works effectively.

Tests

Not all companies carry out thorough tests on their products, but those who make such efforts agree that testing costs money. Many things can be tested, not just the CBD and THC content of a product. Often carried out tests include microbiological analysis and residual solvent analysis (if solvents were used). Terpenes are also regularly tested.

It should also be highlighted that the most reliable tests are those carried out by an external laboratory. And, as you probably already guessed, these are expensive tests. Their quantity and quality are part of the answer to the question why CBD oil is expensive.

Distribution and marketing

Sales of CBD oil, delivery to the store, packaging, warehouse service, shipping, sales returns, advertising and promotion, market research, customer service – all these things are necessary costs that affect the final price of the product. So it may seem that CBD oil is expensive because of the margin, but in fact, the price is mainly influenced by other factors, often independent from the store.

Higher quality = higher price?

There are costs that increase the price of CBD oil, because they also increase its quality, e.g. CO2 extraction. However, you must be on guard, because many manufacturers do not combine high quality with a high price. In this case, the question of why CBD oil is expensive comes naturally.

Some dishonest companies only use the popularity of CBD to make money by selling the cheapest product possible in production and distribution at the price of a quality product. If you want to avoid this, buy organic and tested CBD oils, which are produced using CO2 extraction. You will find them in our store.

Disclaimer: All information provided by Bionativa serves to convey valuable knowledge to our customers. That information should not be treated as medical claims. Keep in mind that CBD-based products available on Bionativa are dietary supplements only.