With so many out there emphasizing on the great things CBD, many more people open up to giving it a try. Yet, what those people are soon to find out is just how expensive CBD oil and other products are.
If you’re just becoming apart of the CBD community, you may consider the prices too ridiculous for the average consumer. And you’re in every right to have this belief. Yet, it’s often overlooked just as to WHY cannabidiol is so expensive.
This article seeks to give you a proper explanation as to CBD’s prices and, hopefully, offer you reasons to continue your interest in these products.
Going from a hemp plant to a little bottle of CBD isn’t as easy as it may first appear. In fact, it’s a long, laborious, and – most importantly – an expensive process.
To begin, the hemp plant has the ability to yield different amounts of CBD. With that, growers naturally want to cultivate the plants that are only CBD rich. In order to do so, the hemp must be harvested from the perfect seed in the right conditions. And both these factors are limited.
Of course, there’s always the option to grow hemp indoors. However, this is an even more expensive process as farmers must make sure the plants receive consistency in temperature, lighting, and water.
Not to mention, regulations have forced farmers to pay big licensing fees¹.
In fact, farmers who decide to grow any cannabis plant (whether it’s marijuana or hemp) are taxed much heavier than your average vegetable farmer. Of course, this all depends on where you’re located. Many states within the U.S. have different regulations that come with different taxes.
The Difficulty of Extraction
Once the hemp plant is grown, the CBD must be extracted and isolated to place in products. This is another huge blow for companies wallets as the process and equipment come with a large cost.
To make it brief, the extraction process is as follows²:
- The plant must be heated and pressurized with carbon dioxide (CO2).
- The CO2 retrieves cannabinoids, terpenes, and other compounds.
- This extraction must then be purified.
- The result will then be frozen and purified again.
Of course, every extraction facility has their own way of going about the process. After the CBD is frozen, some mix it with coconut oil as a means of helping the human body intake the cannabidiol itself. Still, regardless of the facility’s method, there is no cheap and effective way to get CBD out of the cannabis plant.
And in order for these facilities to continue providing this service, they must charge a hefty fee to those providing products to the public.
Market and Legality
The above two reasons are precisely why CBD is so expensive once it’s offered to the consumer. And it can’t be forgotten that each CBD company runs just like any other business.
They need to hire people, market themselves properly, and pay further fees for operating a cannabis business*.
Due to the 2018 Farm Bill, there is potential for the government to loosen up on their regulations surrounding CBD. If so, farmers, facilities, and businesses owners alike may not have to pay as much in taxes and fees.
Furthermore, as science continues to progress, there may a cheaper, yet effective, alternative to extracting CBD from the hemp plant.
Yet, as things stand now, consumers are forced to pay expensive prices for CBD products. Though this is unfortunate, it’s important to remember that every time you do make a purchase, you’re contributing to an industry that holds lots of potentials. And your contribution could one day make CBD more affordable for those who are in need of this alternative medicine.
*NOTE: Cannabis businesses often have to pay larger fees than regular businesses.
¹ National Institute of Food and Agriculture: Industrial Hemp