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why is cbd oil so expensive

Why Is CBD Oil So Expensive?

In recent years, CBD oil has gained massive popularity as the health and wellness industry explores CBD oil's health benefits and the list of things CBD oil helps in an official capacity.

The price tag that comes with these benefits has shocked some CBD hopefuls. So, why is CBD oil so expensive? Is it pure hype and markup? Or is there a legitimate reason why companies charge a lot for a product so many people might need?

Let's take a look at why CBD is so expensive, and whether or not it's worth the price.

What this article covers:

Why Are CBD Products So Expensive?

From our experience, these are the main reasons CBD products can feel expensive.

why are cbd gummies so expensive

Farming Challenges

CBD farming entered the mainstream fairly recently, with many companies still in their infancy. This means farming practices are not yet optimized to produce more products for less money.

For example, farms that farm fruits and vegetables have been doing so for centuries, and in the last hundred years, there have been countless advancements in technology that improved the farming process and minimized farming costs.

Hemp farming hasn't reached that stage yet. Most farmers have to farm the hemp manually, under very specific conditions. Machinery is expensive, and the ones that can afford the machinery have to factor those costs into the final price.

Drying and post-production are also largely still a manual process, with farmers needing huge spaces to safely and quickly dry out the hemp before sending it off to be extracted–which presents another set of problems.

Finally, many hemp farmers were originally other types of farmers. The people you buy CBD from might have been grain farmers before they started producing hemp crops.

Moving from one crop to another is also an expensive endeavor. They need to cover costs for everything from new tax charges to courses in CBD oil strength and how to produce each.

All of this makes the farming experience arduous and expensive, which is unfortunately reflected in prices.

Extraction Is Difficult

why are cbd products so expensive

Farming is only half the manufacturing process. Next, the CBD must be extracted from the hemp plant, which is an extensive process that's a lot harder than just grinding plants in a mill.

There are many methods for extracting CBD oil, but two of the most popular methods used by CBD companies are CO2 and ethanol extraction.

  • CO2 Extraction: Hemp is introduced to CO2 in a pressurized chamber, which turns the CO2 into liquid. Here the CO2 liquid absorbs the CBD ingredients. When the CO2 CBD-infused liquid is all that's left, it goes through another process that turns the CO2 back into a gas and leaves the CBD oil behind.
  • Ethanol Extraction: The other extraction method uses high-alcohol substances such as ethanol to extract the CBD oil. Like the CO2 process, after the extraction the alcohol solvents are evaporated, leaving only–or mostly–the CBD extract behind. The purity level depends on the company's quality commitment and budget.

Finally, the CBD extraction process isn't always once-off. If the oil contains THC or other active ingredients, the oil needs to go through another, if not multiple, rounds of extraction and distillation until only pure CBD is left behind.

If the CBD extraction isn't done right, it could leave suppliers with low-quality products that aren't going to produce the effects people expect from CBD oil.

As you can imagine, all these processes use advanced machinery and technology, which are expensive. Maintenance and upgrades also cost money, but they're necessary for CBD oil manufacturers to stay on par with market trends.

Product Quality Control

Based on our research, many CBD products you see online or in-store do not contain the amount of CBD advertised.

Factors behind CBD oil high cost

Top-quality CBD oil, like ours, understands that to charge a premium, they need to provide a premium product. But to ensure the best product quality and actual CBD oil, they need to send the product for tests that cost money.

Quality Tests

If CBD oil does nothing, it means there isn't enough or any CBD in the product. One way companies combat bad products is through extensive product testing. This ensures that the products users buy actually contain CBD and are safe for consumption.

They also ensure the products maintain the company's promise of the strength and purity of the oil.

However, all of these types of tests cost a lot of money. They require lab work and the help of professionals who can effectively test CBD and its unique properties.

Switching to a lower-quality product could be an explanation for when CBD oil stops working.


The CBD oil market is a highly competitive one, and client demands are always evolving. As we learn more about the processes we use to create CBD, it's only natural that we refine them to maintain market quality.

Explaining CBD oil's price tag

This requires continuous development. Like with quality testing, CBD manufacturers need to hire professionals to test and improve production and development. Maintaining this resource-intensive process requires companies to charge higher prices that can cover these development costs.

Manufacturing Practices

As health and wellness drug developers, high-quality pure CBD hemp oil producers understand that high standards are necessary for every step of the production process. This costs extra but ensures product supply is consistent, potent, and safe.

What makes CBD oil expensive

CBD Regulation

CBD regulations are extremely lax in some regards and very strict in others, and it's because of how new these regulations are. CBD was only made legal in the US in 2018 and later in some other parts of the world.

Lawmakers are still learning about the manufacturing and marketing process. Misinformation is also rampant, especially about the link between CBD and THC.

All of these contribute to manufacturing, selling, and marketing laws being a few years behind actual market trends–all of which increase production costs.

Low-Investment Rates

Companies require capital to improve operations, which usually comes in the form of investment or bank loans. But banks and investors aren't interested in companies or industries they consider high risk.

The CBD market has grown exponentially, with the market projected to reach $42 billion by 2028. But still, most start-ups and established brands struggle to find investors or connections that will help them improve production and lower final product costs.

Simple things like company credit and payment processing can be much higher than other industries.

Explaining CBD gummies' price point

Finally, banks, investors, or other lenders that do partner with CBD oil companies might charge much higher fees, ultimately impacting the consumers.

Product Strength

With any high-quality product, you need high-quality ingredients. CBD oil is no different. Hemp and other CBD oil production ingredients cost a lot of money, especially when a company wants to provide the best possible version of the product.

High-quality products are also important for stronger CBD oil, which requires a higher purity percentage.

Let's say you buy 1250 mg pure CBD oil with 42 mg of cannabidiol per 1 ml serving. This requires a high-purity CBD extract, which you only get when the company is dedicated to product quality and strength.

Understanding CBD oil's high cost

The product will also have to go through multiple rounds of extraction and require more sophisticated machinery to ensure the product's strength. All these things contribute to the price you see when you finally hit that “Buy” button.

Strength will also affect how often to use CBD oil and how long does CBD oil last .

Is Expensive Always Better?

There are many CBD manufacturers, all with different price points. And while this article aims to shed light on the expenses that come with producing CBD oil, it isn't trying to excuse extremely high CBD oil prices. There is a reasonable middle point price that satisfies both production costs and consumer budgets.

Generally speaking, a higher quality product will cost more. But just because it's the most expensive doesn't mean it's the best.

To find the best quality and price products:

  • Check Reviews: Use online forums or popular review sites to see if CBD oil does work. You'll get a good overview of the product's quality and its effects. Compare that information to the price and deduce if it's the right choice for you.
  • Check Test Results: Next, check the ingredients used in the CBD oil. Always choose CBD companies that are open about their ingredients and post their test results. When you know exactly what you're paying for, it's easier to determine whether or not the price of the oil makes sense.

Will CBD Oil Become More Affordable?

As production methods become more advanced, it'll be easier for companies to produce high volumes of quality CBD for less. More and more companies will also join the market and the competition will drive prices down, especially if demand continues to increase like it currently is.

For companies that are already selling affordable CBD oil, prices should stay the same. Most other, more expensive competitors will likely try to match their prices without damaging product quality.

Factors contributing to elevated CBD oil prices


CBD oil is in high demand, Unfortunately, prices have been known to be quite high, with some companies charging as high as $120 for a 30 ml bottle of 500 mg CBD oil.

Many factors including production costs, outdated regulations, and product testing contribute to the high cost of CBD. However, it is possible to buy high-quality CBD oil for a reasonable price. Our CBD oil, Pure Spectrum CBD, is a great example.

Finally, as demands increase and production methods continue to improve, we can expect to see lower CBD prices in the future.

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