I’m sure you’ve noticed that there’s a major gap in the cost of CBD oil. The price tag on two seemingly similar products may differ vastly. In fact, a new analysis from Leafreport found a a 3561% gap between the most expensive and least expensive products across the CBD industry.
And not jsut across the industry as a whole – the difference between the varying category prices (tinctures, topicals, isolate vs. full spectrum) is also remarkable.
Have you ever wondered why? What determines the price of CBD?
Let’s take a look at the numbers and then examine why the cost of CBD varies so widely.
The Leafreport Cost of CBD Analysis
Every 6 months, Leafreport conducts an in-depth pricing analysis, collecting data and comparing the prices of more than 3000 CBD products from more than 100 brands.
The newest report (November 2021), as mentioned, found a a 3561% gap between the most expensive and least expensive products across the CBD industry.
According to their findings, although CBD prices have decreased slightly from $0.122 per milligram of CBD to $0.12 from April 2021, there’s still major gap.
Here are some of their other key findings:
- ⚈ Capsules have risen the most in price since April, increasing by 2.55%.
- ⚈ The most significant price difference is in the creams and topicals category, which has a staggering difference of 11142% separating the most expensive products from the cheapest.
- ⚈ There was a 5100% price difference between the cheapest and most expensive edibles products.
- ⚈ The average price for gummies, capsules, and full and broad-spectrum tinctures was $0.09 per milligram
- ⚈ For pets, the average cost of tinctures was $0.12 per milligram.
- ⚈ The average price for topicals was $0.20 per milligram.
- ⚈ Isolates carried an average price of $0.02 per milligram while isolate tinctures cost $0.08 per milligram.
- ⚈ The average price of CBD for liquids and vapes was $0.12 per milligram
- ⚈ The average price for edibles for people was $0.17 per milligram. For pets it was slightly higher at $0.21.
What Influences Price?
Obviously CBD companies don’t just make their product and think “I think I’ll make it cost this much.” A lot goes into the final price tag.
Things like raw materials, production practices, methods of extraction, independent testing, research and development, all influence the cost of CBD.
The more things things cost, the more a bottle costs. And naturally, if one or several of things are skipped, the price will go down.
Here are some examples.
Organic CBD costs more. Hemp absorbs toxins from the soil. So, if a farmer uses any chemicals (pesticides or fertilizers) during the growing process, or if there are heavy metals in the soil, those will inevitably end up in your CBD – and in your body! Because farmers can’t rely on those more cost-efficient pesticides, and need to monitor the soil very closely, organic farming is more costly, so that makes the better hemp more valuable.
The best extraction process costs more. There are several different methods of extraction for CBD. Carbon Dioxide (CO2) Extraction, Solvent Extraction, Steam Distillation, and Olive Oil Extraction are the most common. And each type requires a different set-up. The best, CO2 extraction results in the cleanest end product, without solvents, etc., and thus it’s more expensive.
COAs costs more. The only way for a consumer to tell what’s in a bottle of CBD tincture or jar of CBD salve is by reviewing the Certificate of Analysis (COA). A COA is a document from an accredited laboratory that shows you exactly what’s in a certain product – everything from total cannabinoid content to heavy metals and pesticides. Companies that provide these have spent considerable money on them.
But do these explain the mega disparity between products? Only somewhat. Sometimes, the highest-quality oils, ones that are rigorously tested and perfected, are cheaper than ones that are not. Sometimes price determines quality, and sometimes it doesn’t. As a consumer, your best bet is always to review a company’s policies and procedures at length. Check out real reviews, see what others have to say, and then judge for yourself. Good luck – it’s a jungle out there!