If you’ve spent any time shopping for CBD, the following question has certainly crossed your mind: ‘Why is CBD oil so expensive?’
The reason why CBD is so expensive is the fact that due to the hemp cultivation, extraction, quality control procedures and current market conditions, it’s virtually impossible to produce cheap CBD oil while maintaining high quality.
There’s a lot to unpack here, but since we don’t want to just complain about the prices, we are going to give you some suggestions on how you can save when buying high-quality CBD products.
But first, let’s take a look at the current challenges that keep the price of CBD oil so high.
Why is CBD oil so expensive?
CBD brands who are committed to create safe and effective extracts must meet several quality criteria, all of which make them more expensive than the average multivitamin pill or cosmetics.
Specialty hemp is difficult to grow
Although hemp itself is not a demanding plant, growing hemp poses some challenges that make CBD more expensive than other plant products.
Hemp requires a lot of manual work and inspection during growth. For example, some plants may contain more THC than is legally allowed and must be destroyed and disposed of. To avoid this, hemp farmers must constantly monitor these plants.
Harvesting hemp presents another issue. If a farm previously produced strawberries or tomatoes, the farmers may not own the machinery needed for hemp harvesting – it’s another big expense.
Finally, the hemp must go through a drying process, which can require large, sheltered spaces with adequate ventilation.
These issues add up to high prices of CBD.
Investing in extraction equipment requires a lot of resources
In a perfect world, CBD extraction would be as simple as squeezing oil out of hemp flowers, but in reality it’s much more complicated.
Hemp extraction requires sophisticated, highly calibrated and expensive machines. Although ethanol extraction is more affordable, it’s not as accurate as CO2 extraction.
Manufacturers have to choose between scaling up and producing consistent amounts of products, so as a trade-off they increase the price of CBD oil.
The equipment needed for CO2 extraction can cost €150,000, not to mention laboratory technicians and analysts, whose rates are also high.
Refinement of CBD oil is another step after extraction that can increase the price of CBD oil products. Some people avoid any THC content, so they choose broad-spectrum extracts over full-spectrum. However, to produce a broad-spectrum product, producers must further refine the oil.
Quality control, good manufacturing practices and development require major investment
Reputable companies don’t simply make CBD products and put them out in the world. Hempo team spends a lot of time and effort to create products that meet the highest quality control standards and are produced according to GMP (Good Manufacturing Practice) regulations.
All of which contributes to why CBD is so expensive.
These steps require highly qualified, experienced and educated laboratory staff, state-of-the-art equipment and a GMP compliant laboratory to verify product quality and safety.
Companies offering cheap CBD oil often bypass the above, which shouldn’t be the case if the product is supposed to make you feel better.
One way to make sure you are making the right decision when choosing a CBD product is to look for companies who test their products throughout the production process. Companies should always test their product batches and provide lab results, otherwise known as a Certificate of Analysis (CoA). This certificate verifies the product content and ensures that no harmful chemicals or additives were used at any point in the production process.
CBD is a new product
One of the main reasons why CBD is so expensive is the fact that it’s simply a new product. Commercial hemp production was legalised in many EU countries only in 2020, so like any new product, CBD oil products are experiencing price inflation.
It may also take time for farmers and producers to rationalise the production and sale of CBD and figure out how best to grow organic hemp without increasing costs. It may take several years for the process to become cheaper.
CBD marketing and distribution are hampered
Many major online platforms, like Amazon and eBay, do not allow the sale of CBD products. Some pharmacies are also slow to start selling CBD products, creating availability issues.
Limited availability and high demand contribute to higher prices.
CBD sellers also struggle with marketing opportunities. Major search engines (Google), social media giants (such as Instagram and Facebook) and various broadcasting networks ban CBD advertising and CBD-related products, making advertising a real test.
CBD companies face funding issues
Despite growing acceptance of hemp across the European Union and around the world, many financial institutions shy away from supporting hemp companies; this includes limiting specific services to such companies.
Banks, money collection apps (PaySera) and credit card processing companies that choose to work with CBD companies may charge more for their services to compensate for the risk, which explains why CBD is so expensive
With financial institutions still reluctant to work with hemp, CBD producers are turning to private investors. And investors generally want a quick return on investment (ROI), so that can also drive up prices.
Not all CBD products are made the same
It goes without saying that a well-made product with organic ingredients would cost more. Sometimes CBD is so expensive because everything from hemp cultivation to extraction methods and additional ingredients is top notch.
However, some companies sell poorly made CBD oils at high prices because they know they can get away with using the excuse ‘we pay a lot for high quality’ without supporting these claims with legitimate lab reports.
There is a lot of misinformation in the CBD space, with some sellers using it to promote fake CBD oils that sometimes contain no cannabidiol, or to claim that their products are full-spectrum, even though lab test analysis shows otherwise. (Article: ‘Types of CBD extracts’).
Rip-offs are expensive by nature
Scammers can be found everywhere, and the CBD market is no exception. Remember when we mentioned that CBD oil is not permitted for sale on Amazon and eBay?
Well, some creative sellers are taking advantage of this and selling mislabelled products that contain hemp seed oil instead of CBD oil, luring consumers with ridiculously high milligram numbers.
Remember, when you see a 5,000 mg bottle of ‘hemp oil’, you are paying for a product that contains ZERO active cannabinoids.
High demand for CBD
A product in high demand may also be priced higher than its less popular counterparts. When you combine this with CBD oil’s incredible health versatility, it’s no wonder why some high-quality CBD products are so expensive.
Why you shouldn’t buy cheap CBD oil products
Considering how expensive some CBD oils can be, seeing a CBD product for sale at a bargain price is sure to get you noticed.
However, if you resist the temptation and consider all the factors that determine the price of CBD oil, you will realise that it’s most likely a low-quality product.
Here are 5 signs of a bad quality CBD product:
- No online shop. If a company only sells its products through social media or ad portals, there’s a good chance it’s a scam. Social media platforms are very strict when it comes to promoting hemp products. Platforms like Facebook and Instagram often prohibit sponsored posts about CBD. It's one thing to advertise on social media or ad portals, but if a company claims to only sell CBD oil through these channels, it’s likely a very suspicious deal;
- Small number of reviews. Reliable CBD companies have many positive reviews on third-party websites. In addition, they actively participate in the social space and care about their community. If a company has little or no online presence, that’s another red flag;
- No lab results. Third-party lab results are the gold standard for CBD companies and independent regulation. No certificates, no trust – it’s that simple;
- Far-reaching claims. While it’s good that CBD companies keep up with the latest hemp research, claiming that a product is a ‘miracle drug’ is an outright lie and a sign that your seller hasn’t taken the time and effort to even read the research headlines;
- Free offers. ‘Just pay for shipping and handling’ – scammers often use this phrase to cash in on a booming market or steal your personal information. Beware of any free offers you come across online.
Always do your research about your potential suppliers. Your health is the most important thing, and no amount of money can buy it for you.
How to save on premium quality CBD
Knowing why CBD is so expensive, we do our best to provide our community with the best deals on high-quality CBD oils. In addition to the usual coupon codes, you can use the following methods to save money on your next order.
Sign up for the Hempo CBD newsletter
First-time buyers and subscribers to our newsletter get up to 25% off all products. Newsletter subscribers also receive regular updates on CBD market news, new products and exclusive promotions.
Follow Hempo on social media
By following Hempo on Instagram and Facebook, you can find out about special discounts and contests where you can win our CBD products for free.
Buy in bulk
If you regularly use large amounts of CBD, buying in bulk is a great way to enjoy instant savings. For example, one bottle of Hempo full-spectrum 15% CBD oil costs €59. Buy 3 packs of this oil and get a 25% discount, paying €132.75 instead of €177 and saving €44.25
Opt for higher CBD concentrations
Although a product with a higher CBD content is more expensive than a product with lower content, you pay significantly less per milligram of CBD, which is a true indicator of the product’s price. Oil with a higher CBD content will also last longer, e.g. two months instead of, let’s say, two weeks.
That’s why CBD is so expensive
It’s normal for people to ask: ‘Why is CBD oil so expensive?’ After all, what you see is a miniature bottle filled with a viscous extract – so why pay up to €90 for it?
Now you can see that there are many factors that lead to such high prices, from hemp cultivation to extraction equipment, skilled workers and a trustworthy third-party laboratory.
So, while high-quality CBD oils are more expensive than average supplements and cosmetics, it’s worth it considering how versatile this product is in improving your well-being.
The good news is that many of the factors driving up the price of CBD oil are only temporary, and as the market develops and full legalisation approaches, prices will only decrease.
For now, you have plenty of options to save on high-quality products with Hempo CBD.