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Why is CBD Oil So Expensive?

Why is CBD Oil So Expensive?

Did you involuntary gasp when you saw the price of CBD oil? Well, you're not alone. CBD oils go for as high as $400, and the price is dependent on many, many things.

What is CBD?

Cannabidiol oil, also known as CBD oil, is a chemical compound extracted from the marijuana plant. Though it is derived from traditionally addictive sources, CBD oil has been shown to interact with the brain in an entirely different way than other psychoactive components. All of this means that CBD is optimal for reducing pain without the side effect of addiction.

There is evidence that CBD can perform medical functions such as:

Recently, there's been an upsurge in its use, with more people wanting to try this miracle compound. But though, it has few side effects and has a lot of untapped potentials; there's still a lot we don't know about it. So what makes it so expensive?

Reasons CBD Oil is pricey

There are three main reasons for cannabidiol oil's outrageous prices. Well, there are more than three reasons, but these are the main ones. All other causes can be linked to them.

Factor #1: Getting the raw materials

There's no need to beat around the bush here. Cannabidiol can be gotten from marijuana or hemp plants, and neither of these plants is legal everywhere. They aren't even legal in most States of the United States. Even in the states where they are legitimate, there aren't a lot of farmers growing it.

Marijuana plants are finicky; they're groomed differently from how other plants are groomed. Creating just a few drops of concentrated oil can take pounds of plants.

To grow an amount suitable for the large-scale production of CBD, you'll need a lot of expensive equipment. To most farmers, it merely isn't worth it, especially when the profits are so unsure.

Factor #2: Extracting and production costs

There are four methods to extracting cannabidiol: CO2 extraction, hydrocarbon extraction, steam distillation, and natural solvent extraction (with ethanol). Of all of these methods, CO2 extraction brings out the purest form of CBD oil.

Cannabidiol is most effective when it's not isolated. That is, there needs to be other chemical compounds and terpenes to enhance it. There's a full gamut of compounds that work to set off the effect of CBD. CO2 extraction is a complicated process that requires expensive technology.

The production of CBD oil via CO2 extraction is also very labor-intensive. It takes a lot of hard work to get even a bottle, and sometimes, companies that produce don't grow the plants themselves, so they need to account for transportation costs as well.

Factor #3: Testing and Packaging

Not all CBD is actual CBD. Sellers on Amazon use the keyword CBD oil or cannabidiol to draw customers. Amazon doesn't allow the sale of CBD, but people get fooled. Which is why it's important to get lab testing done. Lab testing verifies that your CBD oil contains CBD. Then, typical shipping costs apply as well.

In conclusion

There isn't an average cost for CBD. It depends on the scale of the operation and the way raw materials were obtained. Some companies grow and harvest their own marijuana, which lowers costs. Some other companies are big and can use economies of scale to bring down the price.

But smaller operations don't have such facilities and their oils, while they may be pure, will surely be expensive. As the industry grows, so will laws streamlining the process, which will make production easier for everyone.

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