cbd 101

Why is CBD So Expensive?

The Truth About CBD and Why It is Expensive

CBD has quickly become one of the most widely searched compounds online as health benefits of the cannabinoid, and other cannabinoids, continue to gain interest. Many consumers are using CBD to help manage stress, anxiety, pain and sleep cycles; and are doing so in lieu of more traditional medication like NSAIDs, other over-the-counter treatments and even prescription drugs.

But while it’s common for prices to fluctuate in any new industry, many consumers question why CBD is so expensive. Well, the truth is there are many factors impacting the CBD industry and we will dive into just a few that influence the price, including:

CBD legality and regulations
Hemp farming practices
CBD extraction methods
CBD batch testing
Purity, potency and quality of CBD product or Hemp Extract Oil

Perhaps with a better understanding of what goes into producing CBD Oil, consumers won’t be overcome with sticker shock when they see CBD Oil prices. The more you know about CBD Oil, the better decisions you can make when it comes to buying CBD products, which can range from $50-$200.

Let’s get into it…

CBD Laws & Regulations Add to the Costs of CBD

Is CBD legal in all 50 states? The short answer is yes with only 1 outlier—Nebraska (as of April 3, 2020). Industrial hemp and CBD in any variance is illegal in this state.

The Farm Bill of 2018 legalized the cultivation of Registered United States Industrial Hemp under certain conditions. Since this bill was enacted on a federal level, states had to quickly reassess their laws as well as hemp farming regulations to ensure consumer safety. With the CBD industry still in its infancy, these laws and regulations are sometimes ambiguous—at best— and constantly changing—at worst. The FDA doesn’t make things easier either (nor do we believe this government agency should).

This uncertainty has motivated the best CBD brands to retain a legal team to help them navigate the volatile landscape and ensure all marketing, advertising, product formulation, product claims, fulfillment, shipping and product labeling are aligned with the latest laws and regulations. As you can imagine, lawyers are not cheap, further adding to the expense of doing business as a CBD company.

This regulatory status also impacts the willingness and extent to which investors, credit card processors and banks will support CBD brands. To help “safeguard” or minimize their risk from future hemp regulations, their fees are higher than compared to other industries because CBD is still considered a high-risk business albeit we are convinced it is here to stay.

Hemp Farming Impacts CBD Prices

Hemp farming is a critical factor that sets the stage for either a high-quality and safe CBD Oil or a poor quality CBD Oil laden with heavy metals, pesticides, mildews or molds. The latter can be very detrimental to a consumer’s health so understanding whether the hemp farms are organic as well as whether they adhere to agriculture practices set forth by their state are important. For instance, our Veré CBD Oil is derived from USDA Farm Bill compliant, organic hemp farms in Oregon and Colorado. Our hemp farmers adhere to the strict guidelines enacted by the Oregon Department of Agriculture and Colorado Department of Agriculture.

Equally as important is taking into consideration where the hemp genetics and seeds come from. To ensure our high-quality CBD Oil, we have partnered with one of the leading U.S. cannabis genetics company to supply our exclusive hemp farmers with unique genetics that include:

Specially bred, non-GMO hemp cultivars
Proprietary high-CBD and low-THC hemp cultivars
Proprietary high-CBG and low-THC hemp cultivars
Proprietary high-CBC and low-THC hemp cultivars
Cannabinoid & terpenoid-rich strains, with less than 0.3% THC

Again, this all influences the cost of doing business as a CBD brand. So, as a consumer, when you see a low priced CBD Oil, think twice about the efficacy and quality of that product.

High Cost of CBD Extraction Methods

It takes about four months for hemp to harvest. At which point, the hemp biomass needs to undergo a CBD extraction process. Unlike a fruit or nut, CBD isn’t a by-product. The cannabinoids like CBD, along with the terpenes and flavonoids, need to be extracted from the resin, which is primarily concentrated in the glandular trichomes in the hemp flower (with smaller amounts in the leaves and stems).

CBD extraction not only enables the CBD to be accessible for consumption but further ensures there are no microbes or impurities—like chlorophyll, lipids, waxes, and other destabilizing compounds—present in the raw hemp plant. If not properly extracted and purified, these compounds can be detrimental to our health if consumed.

CBD extraction carries a hefty cost for CBD manufacturers, brands and companies. This is an intricate process that involves expensive extraction equipment and efforts. C02 extraction is one of the best and safest methods but also the most costly. The machine alone will set you back six figures. But, if a CBD brand is motivated to have high-quality CBD Oil, then this is an investment worth considering.

At Veré, we are committed to providing our customers with the most potent and safest CBD Extract so we deliberately use CO2 extraction method for our Full Spectrum CBD Oil. Our Broad Spectrum Hemp Extract Tincture and Pure CBD Oil are further developed through additional winterization and cannabis distillation techniques using chromatography. In this technology, naturally occurring trace amounts of THC and other cannabinoids are identified and removed. As such, Broad Spectrum CBD Tinctures and Pure CBD Oil cost more due to the additional extraction methods that are necessary to produce the final CBD products.

CBD Batch Testing Adds to the Price of CBD Oil

CBD testing is a must! Consumers need to know what they are putting in their bodies. In fact, most food, beverages and drugs sold in the U.S. are required to undergood testing before the products are available for sale to consumers.

Before and after each harvest, our hemp farmers test the plant material to ensure the absence of pesticides, heavy metals, molds, and mildews. After testing is completed, our hemp farmers then process and ship the Phytocannabinoid-Rich plant material to our state-of-the-art extraction and purification facilities where we turn the biomass into our CBD Oil. Once converted into oil, each batch is tested in our labs and then shipped to our cGMP manufacturer to be bottled. But before the CBD Oil arrives at your door, it undergoes another round of testing at a 3rd-party lab. While all this testing adds to the expenses, it guarantees the purity, quality, potency and safety of our CBD products.

Purity, Potency & Quality of CBD Oil Factor into the Cost

CBD Oil also comes in different concentrations of CBD and cannabinoids, from Full Spectrum and Broad Spectrum to Pure CBD. As we learned, each one requires a different degree of extraction to produce the final CBD Tincture or CBD Oil. To add more factors, consumers can buy CBD Oil in different strengths from 300mg to 5,000mg. So, more often than not, it can be challenging to compare the pricing between different CBD brands and CBD products. The best advice we can give is to calculate the cost per mg of CBD (or hemp extract).

To do this, take the cost of the CBD Oil ($) and divide it by the total CBD (or hemp extract) content (mg). For instance, our Veré Full Spectrum CBD Oil is $64.95 so when we divide this by the 500 mg of hemp extract in the bottle, we arrive at $0.13 per mg of hemp extract. Compare this to industry averages where you can expect to pay around $0.12 – $0.22 per mg of CBD.

It’s important to ascertain the overall value of the CBD Oil, above-and-beyond the price to ensure a high-quality CBD Oil.

If the CBD Oil is

Organic
Non-GMO
Batch-tested (multiple times over)

and if the CBD Oil is produced via

CO2-extraction methods
cGMP-certified facility
FDA audited facility
OTC certified facility

then it may cost more money.

Purity, Potency & Quality of CBD Oil Factor into the Cost

It’s important to ascertain the overall value of the CBD Oil, above-and-beyond the price to ensure a high-quality CBD Oil.

If the CBD Oil is

Organic
Non-GMO
Batch-tested (multiple times over)

and if the CBD Oil is produced via

CO2-extraction methods
cGMP-certified facility
FDA audited facility
OTC certified facility

then it may cost more money.

CBD Oil Is Expensive, for Good Reason

In summary, yes high-quality and potent CBD Oil is expensive. But let’s look at this through another lens. Is it more expensive than prescription drugs (which may have long-term side effects) and frequent doctor visits? While CBD products are not intended to diagnose, treat, cure or prevent any disease, we recommend you consult with a physician before starting a CBD routine or changing your current medication. We are advocates for the use of holistic and natural remedies to amplify your health so we encourage you to look at all your options and to do your own research. You only get one body and your health deserves the best.