Why Is CBD So Expensive? 9 Possible Factors
Compared to most other supplements, CBD has a larger price tag. For newcomers, it might seem unreasonable that companies are charging so much for what’s now an everyday product. However, there are some pretty good reasons why CBD is more expensive than other items.
This guide covers nine possible reasons why CBD is expensive. It can vary between brands, but customers typically pay more for high-quality goods.
Check out the full range of PureKana products to discover what reasonably priced, top-shelf CBD looks like – and benefit from our free US shipping, too.
However, growing quality hemp is more complicated. For starters, most CBD brands worth their salt want to use organic hemp; when the plants are intended for human consumption, it’s best to avoid chemical growth enhancers. Growing organically can be more expensive since the cultivator must invest in other methods of pest control.
Furthermore, lots of high-quality hemp is handpicked and dried, which means higher labor costs.
Finally, it’s important to consider legal fees. Despite it being legal to cultivate hemp in the USA, most states tightly control its cultivation. Farmers must undergo government inspections and pay licensing fees, driving up the cost even further.
Such tests can be expensive, and are incurred by the brand. Part of this cost is inevitably passed onto the consumer.
It’s worth it, though, to prove the quality and safety of the product. Only the best CBD brands take the extra steps to verify their products. You can see examples of lab reports here on the PureKana website.
In some cases, brands also want to get their products certified by independent bodies. For example, some CBD products come with organic certification, or they are certified Kosher or vegan. There may be fees associated with these checks, which again drives up the cost.
1. It’s Still a Pretty New Product
At the end of the day, CBD is relatively new. It has only blown up within the last decade, making it a new hand in the broader supplements industry. As a result, part of the price is the novelty. Like most products that hit the market, there has been a small degree of inflation. The US government legalized hemp production in 2018, so the legitimate market has only been fully operational on US soil for around five years. Part of the costs relate to manufacturers streamlining the process, particularly paying farmers while they figure out the best way to grow profitable hemp.2. Hemp Is Difficult to Grow
Speaking of growing hemp, the costs for doing so can be high. If you know anything about hemp, you might be questioning this statement. After all, it’s a hardy crop that uses little water.
3. CBD is in High Demand
Sometimes it’s a simple case of supply and demand. The popularity of CBD means companies can charge the prices they do. In 2020, the global CBD market was estimated at $2.8 billion, according to Grandview Research. It has grown since then and remains on an upward trend. As long as CBD remains remarkably popular, prices are likely to remain high.4. Lab Testing and Certification: Extra Fees
There are some things in the manufacturing process that mean CBD brands incur extra fees. We have already mentioned the fees that come with farming hemp, but there are further steps brands must take. Reputable brands always publish lab reports for their products. They must send away samples of their products frequently to an independent laboratory, which tests the sample for toxins and heavy metals. They also verify the cannabinoid content.
5. Difficult to Distribute
CBD regulation varies from state to state. There is very little cohesion, which has led to distribution giants like Amazon banning the sale of CBD on their sites. As a result, the onus is on the manufacturer to pay enormous shipping fees. Smaller brands usually cannot afford this, so they price their CBD products in a way that incorporates shipping costs. For more prominent brands, this can be cheaper.6. Not All Products Are Created Equal
When you’re shopping for CBD, you’ll likely notice a price disparity across different brands. In the CBD market, it’s true that you get what you pay for. Products that cost more typically have a higher price tag due to:- Better research behind the product, e.g., companies hiring trained pharmacists
- Higher quality hemp
- More frequent and more accurate lab testing
- More effective and safer extraction methods