Why Is CBD So Expensive?

Why Is CBD So Expensive?

When a new consumer ventures into the CBD marketplace, they might be a little taken aback by the higher price points of the CBD products. It probably seems a little weird that a 30ml bottle of CBD oil could be so expensive, but there is way more to the story than meets the eye. There is a lot that goes into creating CBD products and the process can be very labor intensive and very pricey. While not all CBD products are created equally, this will give you some good insight as to why a lot of the top CBD brands are charging so much for their CBD products.

Where It All Begins

The high price points begin at the farm, because that is ultimately where the process of making a CBD product starts. Here at Savage Enterprises, we use CBD that comes from the hemp plant, but a farmer had to grow those hemp plants and care for them long before it gets put into one of our top-quality CBD products. The agricultural process necessary to grow hemp and marijuana is extremely costly.  In addition to the seeds, cost of labor for cultivation, harvesting and all the equipment the farmers need, they also have to handle licensing procedures.  Prices vary from state to state but hemp farmers and hemp distributors have to go through reporting, testing, and licensing requirements which are not cheap.

You Get What You Pay For

Just like everything else, there is high-quality hemp and low-quality hemp and everything in between that drives the price of CBD products. A lot of CBD companies grow their own hemp plants and if they don’t do it themselves, they are most likely buying locally making the price more expensive. This helps CBD companies ensure that they are getting the highest quality CBD possible for their products. Other companies might have a lower price point because they import their CBD from other countries, but cheaper is not better. This practice can result in lower quality hemp because it could be coming from an area with much less agricultural regulation. 

Extraction Methods

There are two main extraction methods that are used when extracting CBD from the hemp plant. The first is called ethanol extraction and this is the much less expensive way to extract CBD from the Hemp plant. This entails mixing the plant with alcohol and then it is distilled and strained until all the ethanol has evaporated. This method is used for extracting CBD in large batches, however the CBD from this method tends to be less potent and may contain traces of solvents in the finished product which is not a good thing.

The other far more expensive extraction method is CO2 extraction. This method entails machinery using pressurized carbon dioxide to extract the CBD oil from the hemp plant. CBD oils from this extraction method are generally much higher quality because there is no risk of leftover solvents and the CBD is more potent.  But because this method requires the CBD to be extracted in smaller batches, this drives the price of CBD way up. All of the CBD we use in Savage Enterprises products have been extracted using this method which plays into the final price. 

Testing CBD and CBD Products

After the CBD has been extracted it has to be tested. The CBD in its final state gets tested for purity and concentration and then it is ready to be sold to companies like Savage Enterprises. This adds another layer of expense that has to be factored into the price of a CBD product. But it’s not just the farmers who have to test the CBD; companies like Savage Enterprises have to get their final products tested as well, and it’s not just one time, we do it every month and these tests are not cheap. Once all of this testing is done, the final product is ready for the consumer. 

So, while the price tag for your favorite CBD product might be high, just remember what the CBD, the farmers and companies like Savage Enterprises had to go through and all the money that has to be spent in order to ensure that the highest quality CBD products are produced and ready for consumers.

Contact us today if you have any questions and we offer CBD Wholesale opportunities for vendors looking to carry our Savage Enterprises products. 

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