How much does CBD oil cost?
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- How much does CBD oil cost the consumer?
- What are the different types of CBD?
- Is CBD oil lab tested?
- How do you read the labels on CBD?
- Will CBD ever cost less?
Cannabidiol (CBD) oil is one of the hottest wellness trends of 2019, with products popping up in nail salons, spas, big-box retailers, and health stores throughout the U.S.
Though once illegal, the 2018 Farm Bill made industrial hemp,and thus hemp-derived CBD, legal to produce in all 50 states. And now CBD oil is popping up in such unlikely places as Bed, Bath, and Beyond.
But for curious newcomers to CBD, the price might be raising some eyebrows. A 1 ounce, or 30 milliliter, bottle of CBD oil could cost anywhere from $30 to more than $200, leaving many wondering how something so small can cost so much and vary so widely. What accounts for the discrepancies and, perhaps most importantly, how much does CBD oil really cost?
Well, that’s complicated. CBD can be expensive to produce with plenty of added costs and there are multiple formulas available. Plus, the potency of a bottle can greatly affect the price, even if it’s the same size as a cheaper bottle with less CBD overall. Here’s a primer to the different types of CBD and how much you should expect to spend.
How much does CBD oil cost the consumer?
According to Katie Stem of Peak Extracts, a cannabis product manufacturer, CBD as a bulk commodity ranges from $3 to $15 per gram, or a fraction of a cent to 1.5 cents per milligram. This could mean that a 1,000-milligram bottle of CBD tincture could contain $3 to $25 worth of CBD, but that wouldn’t account for production costs, materials, or labor.
Some companies might do all the production work in-house, but many CBD companies turn to “white labeling,” which is when a larger manufacturer makes their products for them. The CBD companies then must market and ship their products. Stem says this can cost around $25,000 to launch, plus a per-unit cost between $2.50 and $12.50.
Full-spectrum, or whole plant CBD, will contain trace amounts of THC and all compounds originally contained in the plant, such as terpenes. Photo by: Gina Coleman/Weedmaps
“Long story short, the range is so broad, it’s hard to make a general statement about what is a ‘reasonable’ price to pay for a CBD product,” Stem said. “That said, when examining a cost analysis from a production perspective, you look at labor, materials, packaging, labels, potency/purity testing, marketing, and shipping/distribution.
“In most other industries, the labor, materials, and profit are often divided into three equal portions. Given the exposure to this industry with regard to legal, regulatory, and testing standards, it stands to reason that the profit margin must be higher to accommodate potential risk. The markup may be closer to 400% rather than the 40% seen in many other packaged goods.”
There may also be significant markups on the retail side, as cannabis dispensaries are not allowed write-offs on their business expenses per Section 280E of the Internal Revenue Code.
Stem said that when she is personally trying to decide if a CBD product is a good deal, she goes straight to the source material. Is it grown organically? Is it grown domestically? She also looks for readily available certificates of analysis (COA), which must be issued by a licensed laboratory that tests for potency and safety.
Stem said that those products will probably cost at least $50 to $60 per 1,000-milligram bottle, which comes out to 5 cents per milligram or more.
However, for most brands Weedmaps News looked at, 5 cents seemed to be the low end, while the majority cost between 10 to 15 cents per milligram of CBD and rarely exceeded 20 cents per milligram.
A few examples, using prices found in Los Angeles:
- Ignite’s Lavender CBD Drops, 1,000 milligrams of CBD. Priced at $60, or about 6 cents per milligram.
- Topikal CBD’s Sublingual CBD Oil, 1,500 milligrams of CBD. Priced at $140, or about 9 cents per milligram.
- Icon Extracts’ CBD Tincture, 500 milligrams of CBD. Priced at $45, or about 9 cents per milligram.
- Smashed’s Homies Anxiety + CBD Capsules, 400 milligrams of CBD. Priced at $40, or about 10 cents per milligram.
- Ignite’s Lavender CBD Drops, 1,000 milligrams of CBD. Priced at $60, or about 6 cents per milligram.
- El Gallo Star Anise CBD, 500 milligrams of CBD. Priced at $70, or about 14 cents per milligram.
What are the different types of CBD?
CBD can be derived from either hemp or marijuana. Legally speaking, hemp in the United States must contain less than 0.3% THC; it is generally grown for industrial fiber and other uses. Marijuana may have various amounts of CBD and THC and is typically grown for medicinal or recreational purposes. Broadly speaking, whether CBD is extracted from hemp or marijuana, the distinctions aren’t always relevant.
CBD can be derived from either hemp or marijuana. Photo by: Gina Coleman/Weedmaps
“One thing I always say is that a molecule does not know its mother, so CBD is coming from cannabis or hemp, but it’s the same compound,” said Robby Flannery, Ph.D., CEO of California-based cannabis brand Dr. Robb Farms.
The difference might be more relevant when comparing whole plant CBD, which can be full-spectrum or broad-spectrum, with isolate CBD. The latter results from extracting the CBD compound in its pure form, minus other cannabinoid compounds such as terpenes, which may provide flavors, aromas, or enhanced physiological or cerebral effects.
Full-spectrum, or whole plant CBD, will contain THC and all of the compounds originally contained in the plant, such as terpenes. Broad-spectrum hemp is similar to full spectrum, except that the THC is removed.
An ongoing debate in the CBD oil industry currently focuses on whether THC or other compounds are useful. Researchers have identified a synergistic interaction between the plant’s various compounds known as the ensemble effect or entourage effect. That’s one reason some may seek out full- or broad-spectrum CBD, but there are various reasons why a person might prefer one over the other. If, for instance, you dislike the smell and/or taste of cannabis or want to avoid THC entirely, you might choose to stick to isolate.
Flannery notes that “cannabis tends to be a little more resinous, so the entourage effect and ensemble effect that you would be able to achieve [by] including some of those other cannabinoids is more profound. But if you’re just consuming an isolate product, it does not matter [which plant] it comes from.”
Many medical marijuana and CBD isolate consumers prefer an edible such as a gummy to receive their dose of cannabinoids. Photo by: Gina Coleman/Weedmaps
Whether you end up purchasing hemp-derived or marijuana-derived CBD might actually depend more on where you live than preference. With the passage of the Farm Bill, hemp-derived CBD is legal throughout the U.S., while cannabis-derived CBD will be available only to consumers in adult-use states or to patients in states that allow medical cannabis. Cannabis-derived CBD is likely to cost a bit more because hemp is less costly to produce.
Is CBD oil lab tested?
Third-party lab testing ensures a product is safe and correctly measured. A licensed lab will make sure a product’s potency is accurate, meaning you’re actually getting the amount of CBD or THC you’re paying for, or alternatively, that the THC content is zero for those who want to avoid any possible intoxicating effects or drug-testing surprises. These tests also will analyze moisture content and screen for pesticides, mold, fungus, and residual solvents — chemicals that may remain after the extraction process.
Third-party lab testing ensures a product is safe and correctly measured. Photo by: Gina Coleman/Weedmaps
How do you know you’re getting a lab-tested product? If a company lists its certificates of analysis on its website and packaging, shoppers can usually be assured the product has been lab tested.
“If you are a cannabis consumer and you go to a licensed retailer, you are close to 100% certain that all of that product has been tested by a third-party lab and it passed very stringent restrictions and regulations,” Flannery said.
Testing can get pricey, especially in a state such as California, where testing regulations implemented in late 2018 increased costs as much as 40% to 55% for some manufacturers, according to MJBizDaily. Flannery estimated testing can cost a company between $100 and $400 per sample, and they may have to test several samples. Those that produce flower — from which the oil is derived — have to test incrementally, such as every 55 pounds.
“If you’re a large farm, that’s a lot of testing,” Flannery said. “I know some groups who are spending in the seven-figure range on testing on an annual basis.”
All of these costs are shouldered by the manufacturer and ultimately raise the prices overall.
How do you read the labels on CBD?
The label on any CBD product will tell you several important details. Perhaps the most obvious detail is the name of the company, which you may want to research so you can read reviews of the brand (most are available on Weedmaps) or the individual product. Or, you might want to visit the company website’s FAQ page for additional product information.
The label will also tell you how many milligrams of CBD the product contains. This number may be the total amount or how many milligrams are in each serving.
Topicals and oils usually list the total amount of CBD. Balms, lotions, and other topicals are products you’re likely rubbing into your skin and therefore, you might not be concerned about measuring out a particular dosage.
With oils and tinctures that you’ll be ingesting, you may wish to find out how much CBD is in each serving. To do that, you’ll need to determine the milligrams of CBD within the net weight of the product. So, if you have a bottle that contains 30 milliliters (about 1 fluid ounce) of liquid and 500 milligrams of CBD (divide 500 by 30), that’s about 16.6 milligrams per milliliter. It takes about 20 drops per milliliter.
If your product is an edible — chocolate, candy, etc. — or capsule, you may find that the package lists how many milligrams of CBD are in individual items. If a bottle of capsules says that each capsule contains 30 milligrams of CBD and there are 30 capsules in the bottle, that would be 900 total milligrams of CBD.
CBD oil usually comes with a dropper to allow consumers and patients to measure out their dose. Photo by: Gina Coleman/Weedmaps
If the product contains THC, the label will tell you that as well. It may tell you the ratio of THC to CBD, such as 18:1, which would be a particularly THC-rich product, or 1:1, which would be more balanced.
The package will also specify whether the product contains full-spectrum, whole plant, or isolate CBD, as previously mentioned. And, like any other product, the label will list what else is in it (coconut or medium-chain triglyceride oil derived from coconuts are common carrier oils), where it was made, and how it ought to be stored.
Will CBD ever cost less?
According to Flannery, yes, the price of CBD will come down, but not for a few years. “I think the primary driver behind [the cost] is just the regulatory environment that we’ve lived in for so long has limited the amount of production we can do,” he said.
Flannery noted it takes time to put together the capital expenditures and build out the infrastructure required. A new hemp farm requires a minimum of two months to produce any crop and in many places, the 2018 Farm Bill marked the first time it was legal. Plus, testing regulations are often much stricter when it comes to CBD and cannabis than to similar herbal supplements or oils.
“CBD is never going to be, in my opinion, as cheap as any off-the-shelf pharmaceutical or herbal supplements, but prices are still going to be going down,” Flannery said. That cost savings may come about, he said, when lawmakers begin to understand that cannabis is not, “the devil’s lettuce we were told it was.”
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How much CBD is in Hemp Oil? The Ultimate CBD Purchasing Guide
It seems like there are hemp oil and CBD oil products everywhere – and with so many different formulas and brands in the marketplace, it can be difficult to get a clear understanding of how much CBD is in a product. How much CBD is in hemp oil?
While there are numerous products in the marketplace that sport a cannabis flower on the label and include terms that are associated with cannabis, it is many times not crystal-clear on what ingredients make up the formula.
LetвЂ™s clear the air and discuss how some of these products differ and what you should look for when purchasing a hemp-based oil.В
How much CBD is in Hemp Oil?
The answer? It depends.В
One of the first considerations is that when a product is labeled as вЂњhemp oilвЂќ, it could be a formula harvested from cold-pressed hemp seeds or could be the completely different process of extraction from the cannabis plant.В
LetвЂ™s cover some of the differences between hempseed oil and CBD oil вЂ“ which can both be commonly referred to as вЂњhemp oilвЂќ.
Hempseed Oil вЂ“ What is it?
Hempseed Oil, commonly referred to as вЂњhemp oilвЂќ, is like other carrier oils that are in the marketplace and does not contain any CBD or significant amounts of THC. It has been abundant in health food stores for decades and has commonly been used in skin care applications.В
This greatly differs from CBD oil that comes from an extraction and comes with the sought-after properties of CBD (cannabidiol).
CBD Oil вЂ“ Do all products have the same amount of CBD?
Hemp oil products that are created with the plant-extraction (also known as CBD oil) can be made with different amounts of CBD, other cannabinoids, or even THC. It is essential to have a clear understanding of everything that is included in your CBD oil product before making a purchase.В
HereвЂ™s the thingвЂ¦
When it comes to CBD oil or anything related to the hemp oil, there are many customers that may believe that вЂњbigger is better.вЂќВ
This is not always the case.В В
Many times, the consumer is misled into buying larger quantities of solution thinking that all tinctures have the same concentration of CBD.В The following information will describe what to look for when you buy your tinctures.
Hemp Oil & CBD Oil Purchasing GuideВ
Of course, everyone wants to get the best deal for their money spentвЂ¦ and itвЂ™s due to this fact that the pricing in hemp oil/CBD products can vary greatly.
When you are purchasing a CBD tincture, you must keep in mind that you are paying for the CBD contained in the tincture and not the carrier oil in which it is diluted. There are many different formulas from each company.В В
HereвЂ™s how it worksвЂ¦
CBD is diluted in what is called carrier oil.В This carrier oil is used to make your dose easier to measure.В В
If pure CBD oil was used, it would be too concentrated to accurately measure which is why it is paired up with a carrier oil. This carrier oil can include hempseed oil, sunflower seed oil, anchovy oil (for an oil specific to your pet), or equivalent oil.
В These carrier oils can contain large quantities or very low quantities of CBD.В The manufacturer makes this decision based on the desired intent for the product.В В
Some companies market quite large bottles of tincture which contain very small amounts of CBD.В This product effectively has no therapeutic value to you and can be a large waste of money.В
So how do you determine what is a good value?В You must look closely at what you are thinking of buying.
- First, determine the quantity of liquid (carrier oil) contained in the bottle.В This is normally stated in milliliters or ml and fluid ounces.
- Second, find the quantity of CBD contained in the bottle. This is normally stated in milligrams or mg. В This should be in large print on the front label. If it is not, be careful! Read the fine print on the back of the bottle to find the mg CBD contained.В If it does not state clearly the amount of CBD contained, do not assume it has any CBD.
- Third, check the price of the bottle.
Once you have all the above, there are simple equations which you can use to figure out the concentration of CBD in the tincture and the price per milligram of CBD in your potential purchase.
Use these simple equations:
Finding the CBD Concentration of a Product
What you want to look for is the mg (milligram) CBD per ml (milliliter) of tincture. Since it is the CBD that you are looking for in these products, finding this concentration can help you determine whether you are getting a good deal on the product or if the item has little to no therapeutic value to you.В
Here is an example.
LetвЂ™s say that we are comparing two bottles of CBD oil that are each 30 milliliters in size (1 fluid ounce).
The first bottle contains 100 milligrams of CBD and the second bottle contains 1000 milligrams of CBD.В
- 100 mg CBD in 30 ml = 100/30 = 3.33 mg CBD per milliliter
- 1000 mg CBD in 30 ml = 1000/30 =33 mg CBD per milliliter
This goes to show that since the bottle with 100mg of CBD may be much lower in price, it may not be nearly as valuable as the bottle with 1000mg of CBD. That is why it is a good idea to think about the price per milligram of CBD vs. the price of the complete solution with the carrier oil.В
Finding Price per milligram CBD for a Product
Using the same example products, letвЂ™s look at how to price it out per CBD content.В
LetвЂ™s say that the first bottle is $30 for the 100mg CBD content whereas the 1000mg CBD solution is $80. Even though the price is over double (and almost triple) the price of the product with the lower CBD content, it is much more valuable for the consumer.В
- Example of 100mg CBD costing $30 vs 1000 mg CBD costing $80
- $30 / 100 mg CBD= $0.30 / mg CBD
- $80 / 1000 mg CBD = $0.08 / mg CBD
Bigger DoesnвЂ™t Mean Better with CBD Oil ProductsВ
We were recently approached by a customer who was wondering why another companyвЂ™s bottle of CBD which the same size of ours was 1/3 the price of ours.В В
We explained that their product contained only 50 mg CBD per 30 ml (1 fluid ounce) while our tincture has 1000 mg CBD per 30 ml (1 fluid ounce).В So, using the equations, you would find that 50 mg CBD in a one-ounce bottle would be a concentration of 50mg/30ml = 1.66 mg / ml. So, their $30 bottle would in effect be $0.60 per mg of CBD while our 1000 mg bottle at $80 would have a mg price of $0.08!!В Therefore $0.60 / $0.08 = 7.5x more expensive than ours for the CBD contained in the competitorвЂ™s product.
So please keep in mind, bigger is not always better!В And feel free to contact us at 43 CBD for any questions while purchasing products!
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It seems like there are hemp oil and CBD oil products everywhere and we aim to answer the important question- how much CBD is in hemp oil?