What is CBD oil, and why is it so expensive?
Following is a transcript of the video.
Narrator: Depending on who you ask, CBD oil can be a miracle cure, a snake-oil placebo, or something vague in between. This poorly regulated industry, which has boomed over the last three years, is a minefield for newcomers. Considering that manufacturers are unauthorized to make medical claims, how can one CBD oil cost $50, while another of the same volume costs $390? And are premium CBD oils justified for being so expensive?
Firstly, what is CBD?
Dani Gordon: CBD stands for cannabidiol. That’s the chemical name for one of the chemicals in the cannabis plant. The CBD oil that you’re seeing on shelves that consumers can buy without a prescription is actually from low-THC, the stuff that makes you high, varieties of the cannabis plant.
Narrator: CBD is a new and rapidly growing phenomenon, with sales tripling in the last three years. But the line between what consumers are using it for and what manufacturers can say to attract them is increasingly blurred.
Gordon: It can be used for a variety of purposes, things like inflammation, anxiety, stress, and it can also be used just to support general wellness. Now, the differentiating criteria between a medicine and a supplement is you cannot make a claim that it treats or cures a specific medically diagnosed disease. And that’s really important for companies to understand, because they can get their products pulled off the shelves, and they can also potentially sometimes unintentionally mislead consumers.
Narrator: But in the age of anxiety, it’s no surprise that CBD has become a hot ticket for manufacturers, who infuse all sorts of products with cannabidiol, shrewdly tapping into its perceived wellness benefits and bumping up the price of otherwise standard items, like gummies, sportswear, tampons, and even dog treats. But how do we assess the value of CBD oil, which is actually produced in two different ways?
Gordon: A full- or broad-spectrum product is made from the whole plant extract. They take the flower and they process it, and they come up with an extract that not only has CBD, but it has other plant chemicals, other cannabinoids, other terpenoids, other things in the plant that work together in this, what’s called this herbal synergy, this entourage effect. And what you get is greater than the sum of its parts.
Narrator: But some manufacturers process the extract even further into CBD isolate, a substance devoid of all other plant chemicals and labeled as “pure CBD.” But this isolate, which often features in expensive products, is generally considered to be less effective and cheaper to make.
Gordon: Some brands and some companies will put CBD isolate into a product and then brand it as a premium product, even though the cost of actually making it, because the cost of the isolate, is quite a lot lower than the cost of a full- or broad-spectrum CBD.
Narrator: But because of lax regulations in the industry, this fundamental difference in CBD oils is often disguised by manufacturers. The front of this premium $300 bottle, for example, does not display that it is, in fact, made from isolate.
Gordon: Sometimes you have to dig into the nitty-gritty of the ingredients. And sometimes you even have to, you might have to call the company and see what they’ve actually used. But in general, the labeling criteria are becoming a little bit stricter, so more and more consumers will be able to know what is a CBD isolate product and what comes from a full- or broad-spectrum source.
Narrator: These products can also be measured by the amount of cannabidiol in each bottle.
Gordon: What you really need to look for is the number of milligrams in the entire bottle, and then the number of milligrams of CBD per dose. And that’s really gonna tell you the bang for buck.
Narrator: But even high-dosage, full-spectrum CBD doesn’t have the approval from the Food and Drug Administration. The FDA says it “recognizes the significant public interest in cannabis and cannabis-derived compounds, particularly CBD. However, there are many unanswered questions about the science, safety, and quality of products containing CBD.”
More worryingly, lab tests conducted by the Centre for Medicinal Cannabis found that 62% of CBD products tested in the UK didn’t contain the cannabidiol content promised on the label. One product actually contained no CBD whatsoever.
CBD is shrouded in mystery and confusion for the consumer. On the one hand, a 2018 cross-sectional study of CBD users found that almost 62% “reported using CBD to treat a medical condition,” stating that CBD has “broad therapeutic value. But on the other hand, manufacturers cannot use the research data to make medical claims, leaving spokespeople in the unenviable position of having to promote their products to a certain demographic while avoiding endorsing the public’s perception of CBD.
Brett Heaps: So, what we’re not allowed to do with our products is make any medicinal claims, ’cause they’re not medical products. All our products that we sell are wellness products to improve sleeps and moods. We see CBD as a homeostasis product, which balances the levels in your body to get you into a normal state and balanced mind.
Narrator: Thankfully, despite the misconceptions, no matter what you use it for, there is a way to get a snapshot of the quality of CBD oil.
Gordon: You wanna look for a certificate of analysis. That means that that is a third-party-tested lab report. They test their product to make sure that it’s not contaminated, make sure it doesn’t have accidental THC levels above the allowed limit. Make sure it doesn’t have heavy metals in it. Make sure there’s no microbials, so, bacteria or fungus that can grow in these plants. No herbicides, pesticides, things you don’t want in it.
Narrator: So, why is it so expensive? The cost of producing CBD oil isn’t particularly high in relation to other large-scale crops. But there appears to be a premium on all cannabidiol, as revealed in this comparison of full-spec CBD, which shows that its prices grow pretty uniformly, according to the price per milligram in each bottle. With any wellness product with a global hype, high demand means high prices. Statistics show that sales of CBD will likely reach $1.8 billion in the next two years. But without regulation, medical research, and clear consumer knowledge, the human value of CBD oil will, for now, remain a matter of opinion.
CBD is a growing phenomenon, with sales tripling in the last three years. But manufacturers are forbidden to make medical claims on its effectiveness.
Differences Between Cheap And Expensive CBD Oil
What Are The Key Differences Between Cheap & Expensive CBD Oil?
Although more research needs to be done, more and more people are using CBD oil as a natural remedy for a variety of health concerns. Acquiring CBD oil is extremely difficult and puts the buyer into extreme confusion due to the large difference in prices. Some brands of CBD oil or CBD products are very cheap as compared to the rest. Some cost as much as gold does! So, what causes this disparity and why is it this way?
Loveburgh 2000mg MCT CBD Oil 10ml
3000mg CBD Tincture Oil UK by Honey Heaven
365 CBD Tincture 1000mg CBD 30ml
Why Is CBD Oil So Expensive?
If it’s your first time venturing into the CBD world, you might be feeling somewhat shocked at the high prices. Why does CBD oil cost so much? Well in most cases, especially with the best CBD brands, there’s a good reason why CBD oil is so expensive.
Certain factors and processes add to the cost of CBD oil. We need to understand what these are and how they contribute to the final product. The first and foremost is the cost of growing the raw material, that is hemp or cannabis plant.
The plant requires farming that has its own costs but what adds to the basic cost is the fact that it is illegal in most countries of the world. So, it must be imported from countries where it is legally grown. The import costs a lot because it must go through the government’s approval along with transportation costs.
Furthermore, the cost of extracting CBD oil from hemp or cannabis plant is also added to the manufacturing cost. The processing requires labour, equipment and complex processes. The next step of the process is to purify the CBD oil.
Purifying is very important as the hemp plant can absorb toxins from the soil very easily. The price of this purifying and then testing increases the cost of the CBD oil.
CBD oil is rare, and the legality is still a grey area in most countries, so the cost increases due to scarcity.
What Is CBD Oil?
Why Does The Disparity Exist Between CBD Oils?
Cheap CBD oils may not be very safe. They do not go through proper purifying and safety procedures to save on the manufacturing costs. Moreover, these may also be oils that have substandard raw material used in them, and some have been found to have no CBD in them at all!
Expensive CBD oils go through proper processing and manufacturing. They are sold using proper channels and are generally backed up by legal agreements. They are better for medicinal purposes as it is guaranteed that no impurities can react with your body and they also contain the lowest THC compounds.
Related Article: CBD vs THC
CBD Is An Exclusive Commodity
Well, assuming that you have then there are a number of factors driving up the price of the CBD. First of all, CBD can only be grown in certain countries or states, and any limitation or exclusivity adds up. Most CBD Oil is legal in the UK, however, it’s always best practice to research current laws before purchasing CBD oil. General confusion surrounding the legality of cannabis and cannabis products is a constant issue among consumers.
Honest Hemp 2000mg CBD 10ml
Equilibrium CBD Raw Extract 500mg CBD Oil 10ml
Orange County CBD 1000mg 30ml MCT Oil – Organic Coconut Oil
Added to that there are heavy taxes placed on the growth of legal cannabis cultivation. And on top of that are a lot of licensing fees due to the amount of government oversight there needs to be.
Additionally, in certain countries, like the United Kingdom, there are only a specific number of growers that can get a license. So licenses are very rare and often end up going to friends and family of the UK government.
CBD is truly a business where you need to be bringing a lot of cash to play just to even start your business. After all the legalities are taken care of there’s the matter of storing and maintaining your stock. Cannabis is a tough and durable plant but it requires certain temperatures and continuous levels of care. In some locales, that’s simply impossible to do. The prices get high, forgive the expression, really quickly.
And then after all that, once a business has got itself set up with a decent CBD supplier, the products themselves will be heavily taxed. This, naturally, drives up the price.
Should You Be Paying This Amount For CBD Oil?
Like we said up top, we understand why you might be a bit nervous shelling out this kind of money for CBD. You look at these tiny bottles sitting on the shelf, massive price tag, and you wonder, is this worth it? Well hopefully you know by now but clearly the production of CBD involves innumerable obstacles.
There’s not just the practical and legal difficulties, there’s also public stigma to contend with. People starting CBD companies know that there are those that will just say it’s simply cannabis. That the proprietors are really drug dealers. This negative image is unrelenting and can create a real strain on decent business owners.
Choosing The Right CBD Oil For You
And a final question you should probably ask yourself if you’re unsure about CBD. What if it really works? We know that there is still quite a lot of research to be done on the effects and potential benefits of CBD. But what if it really worked? If it could really do all the things people claim it can. Would it be worth it then? There’s only one way to find out after all.
What Can You Do When Buying CBD Oil In The UK?
You should buy CBD oil after very careful research and should stay away from the cheapest ones as they are of low quality and safety is not guaranteed. You should be careful while buying CBD oil and should always buy it through legal channels and brands that are transparent and publish their safety test results and legal agreements. Paying a bit more is better than the trouble you will experience when you use low-quality CBD oil to treat your illness. So whether your using a CBD vape pen with CBD e-liquids or a CBD tincture our you must keep the article above in your mind at all times!
Why is CBD Oil so expensive? We take a look at the current state of the CBD market in the UK and compare products to see where the best value is!