Why is CBD so expensive?

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Is CBD really expensive? What price to pay for CBD? These are some common questions in our minds.

CBD products market is overwhelmed with products in different price ranges. Although we understand the logic of the laws of demand and supply of a product that determines the price, what makes us think that CBD is expensive? 

To call a product as expensive, or competitive depends on several considerations. 

Does the quality perception drive CBD into the expensive category? What is your quality perception?

Allow me to add some more insights to your thoughts. In this blog post, you can gather information about: 

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  • Is Cbd expensive?
  • From the farm to your hands. What factors influence the price?

Is CBD expensive?

It is indeed an open-ended question. Generally speaking, let us discuss two reasons to assess if CBD is expensive. 

Firstly, the country and the state that you currently live in determines the final price of a product. The reason for this is that all supply and use of drugs are subject to federal and state laws that vary as per legal regulations. Therefore, the percentage of value-added tax also varies. This gets either included or excluded in the final price. 

In most cases, you will be able to see this information when you are making a purchase. The same applies to both online shopping and brick and mortar stores.  

Secondly, you are aware that CBD products are cannabis extracts. But every CBD product does not come from one strain or breed. Studies identify  779 cannabis strains. Each strain possesses unique properties and is cultivated in different parts of the world. If one is looking for CBD products of a specific strain, then the cost of CBD could also differ. 

For example, Kush is a Cannabis Indica strain that is extensively cultivated in Afghanistan, Northern Pakistan, and North-Western India. 

There is more to understand beyond these two perspectives.

Cultivating cannabis
Cannabis cultivation

From the farm to your hands. What factors influence the price?

Beyond the demand and supply mechanism, other factors that influence the price of CBD are:

(1) Cost of Cultivation 

All the general rules for agriculture apply for cultivating cannabis. For example, weather, soil, water, and temperature. 

  • The texture, drainage, and water retention of the soil are the most important considerations to get a good harvest. When it comes to temperature resistance, Cannabis plants prefer a temperature similar to humans, not too dry, not too humid. 
  • Modern technology has made cannabis cultivation more environmentally friendly and sustainable. Have you heard about grow light technology? This horticulture technology moderates light and heat using LED lights. And is used both in Industrial and household levels. This has made horticulture affordable, accessible to businesses, startups, and hobbyists. 

Therefore, the complexities of cultivation incur costs for harvesting quality cannabis strains that could affect the price of CBD products. 

(2) Cost of Labour 

The abundant natural availability of hemp that can be traced back from 8000BC to the middle ages occupied a prominent part in the lifestyle of people. It also played a dominant role in the early development of the country, because of the labor-intensive nature of hemp harvesting. 

According to a 2016 research report, “‘apple, orange, and cannabis crops are all labor-intensive’ covering more than 30% of the total costs of production. This is because soil preparation, planting, irrigation, pruning, trimming, are some of the variety of tasks that are highly labor-intensive.  

In a local farm, neighbors and friends involve themselves in several stages, and when it comes to trimming it is considered the most boring and tedious, but lucrative. Skilled trimmers earn $20-30 per hour at a piece-rate and can go upwards to $150-200 per trimmed pound of the plant. Working 10-14 hours a day, a trimmer could process up to 2 pounds a day. Therefore, the three month harvest season also called Croptober a nickname for the outdoor cannabis harvesting season could be rewarding.

A Cannabis leaf and CBD oil
A cannabis leaf and CBD oil

 (3) Extraction costs

Cannabis extraction is a labor-intensive task that requires skill and expertise. For example, there are various methods of CBD oil extraction. Depending on the requirement and manufacturing facility set up, any of these standard production processes are carried out. 

The extraction process can be done with solvents and without solvents. Broadly, the most popular solvents for cannabis extractions are butane and propane, although CO2, ethanol, and heat and pressure are also employed. 

The appropriate choice of an extraction process adds more value to produce economically available quality products that are fairly accessible to larger sections of society. There are two perspectives to look at. On the one hand, organic solvent-based extraction is a common method that is followed as a standard practice in the chemical, food, personal care, pharmaceutical, Industries. 

On the other hand, it is debated that organic solvents are highly or extremely flammable and explosive, which could be an important concern of safety to people involved in the work, the manufacturing unit, and society. For example, the open blasting technique of CBD extraction is not only hazardous and dangerous but also creates a black market that sells low-quality products at a low price. Patients could be exposed to high health risks on purchasing such products. 

Therefore, studies say that hydrocarbon solvents are a comparatively better and safer bet than organic solvents. This method produces superior quality output that is economical, accessible, and safe.

(4)Legal costs

Business licensing is a complex process. Therefore, adhering to laws and regulations is every Individual’s responsibility. Following ethical values in conducting business is most important in the technologically driven globalized market. 

Operating a legal business certainly involves legal costs for obtaining permissions and privileges. This fee is remitted to the government for granting a license for conducting authorized business. Unfortunately, the image that cannabis carries, mandates it to undergo more scrutiny for obtaining a business license.

These licensing costs vary from state to state in every country. Moreover, there is a cost involved at every stage of the value addition of the product. There is a fee involved in every process. For example, application fee, cultivation facility license, product manufacturing license, concentrate manufacturing license, which could range from US$1000 and upwards.

From the consumer point of cost of shipping, the product would be separate and that would vary according to the legal policies in your country.

(5)Import and Export costs

Sourcing cannabis from countries where it grows involves procedures and processes. This cost would vary depending on where they come from and get included in the final product. 

Shipping costs can be seen in two categories. One is shipping the final product to the final point of delivery and the second is the raw material procurement costs which are included in the cost of the operation by the manufacturer. We tend to overlook these intricate details while we evaluate the price.

Federal laws vary from country to country. It would be easy for businesses to operate in countries that permit export and import of medical cannabis that can keep their legal costs in control. 

The International Narcotics Control Board (INCB) is the authority that permits cannabis cultivation, production, right to import and export and conduct wholesale trade. 

Therefore the entire supply chain has to be considered in terms of product cost analysis. 


(6) Purity and safety tests, quality control costs

Distributing health-related products definitely involves third party safety and purity tests that are usually done by labs that follow standard legal procedures for approving product quality. 

Continuous research and development, use of modern technology and machinery facilitate production and supply of superior quality and safe products.  

(7) Cost of positioning in the market

We are all now familiar with online shopping that saves our time and effort. But the world of the Internet is flooded with CBD products offered by various brands. It is a tedious process for us to choose the right product. 

We continuously seek up to date information, knowledge, and exercise the freedom to research and compare different products. 

Nordic oil has carefully embedded this value in its operations and adopts the best practices for communicating and conducting business. A team of experienced, passionate, and goal-driven professionals are engaged in making this possible. As a result, this attests us (consumers) to make informed decisions. 

Quick Take away

  • Nordic oil believes and follows best practices in terms of sharing up to date information about products so that you can make informed choices while making a purchase. Connect with us on our Facebook, Instagram, and read our blog posts to expand your knowledge and to share your experiences. 

You must update yourself in understanding and differentiating what is permitted and prohibited; what is punishable and non-punishable in the country that you reside. Policy discussions are in the developing stage added to that several jurisdictions are considering reducing penalties. 

Be aware of your actions, even if you are buying CBD for medical use. At this point, please understand CBD products are not psychoactive. However, be mindful of the percentage of THC content in the product. You could see this information printed on the product label. Do cross-check if it is in the permissible limit in your country. 

I believe that my health is wealth. In the same vein, I feel empowered when I buy high-quality Nordic oil CBD products.

Now, I would like to ask you, do you think that CBD is expensive?

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Published by AnooradhaUnni

Prefix the following words with ‘fierce’: Independent, creative, honest, and hard working. The outcome defines a typical scorpio rising individual. And I exactly fit into this divine scientific design! With close to two decades of successful stint in the Media industry, I felt I was surely missing a piece in my life puzzle. I took a break and set out to seek the purpose of my life. I travelled, lived out of a suitcase, let things flow into life without resisting, and after five challenging years, I found my rhythm. I decoded myself, and my ikigai! Thanks to Nordic Oil, CBD oil (1000 mg) with Curcumin. A perfect mix of ingredients that is made for my kind of personality. I love to write about Cannabis and Health and try my best to simplify esoteric concepts into simple ideas for life.

2 comments on “Why is CBD so expensive?”

  1. CBD is expensive because of several reasons. One of the biggest reason is that CBD is considered illegal due to which it is sold in black and is expensive. The other reason is cbd as a medical drug is rare and can be find only at cbd dispensaries so the cost more than ordinary medicines. And some people who are cbd dependent have to get cbd at any cost so they pay whatever it costs for their treatment.

  2. Another day, another great article!
    I used to wonder it too in the past and thought of cannabis growing business as one of the most evolving and revenue-generating ones among others. I would take away one thing from this article that the mechanical costs is high, plus the legal and federal taxes are the real source of high prices. The arguments about it being legal and illegal are still lurking around the corner.

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