How much does CBD oil cost?
For the last few years, cannabidiol (CBD) has become one of the hottest wellness trends. Touted for its potential health benefits, CBD oil is one of the most popular items in this space, with products popping up in nail salons, spas, big-box retailers, and health stores throughout the US.
The 2018 Farm Bill defined industrial hemp as cannabis containing up to 0.3% tetrahydrocannabinol (THC) and legalized its cultivation nationwide. CBD oil and other products manufactured in accordance with the bill were no longer on the government’s schedule of banned drugs. Though some states still outlaw CBD in any form other than the prescription epilepsy medication Epidiolex, it is now easier than ever to access and purchase CBD products. In addition to being able to buy CBD oil online, you can also find everything from CBD capsules to CBD topicals, CBD gummies, CBD beverages, and a massive range of other CBD products in such unlikely places as Bed, Bath, and Beyond.
But for curious newcomers, CBD oil cost might raise some eyebrows. A 1 ounce (30 milliliters) 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 why CBD prices vary so widely. What accounts for the discrepancies and, perhaps most importantly, how much does CBD oil really cost?
Any attempt to account for CBD prices is a bit complicated, as there are many factors and variables that affect the average cost of products in the CBD industry. The process of extracting CBD oil can be expensive while additional costs may arise from creating specific products. Plus, the potency of a bottle can greatly affect the price. Additionally, variables such as whether or not the product is a full spectrum CBD oil, if it’s an organic CBD oil, or if it was extracted from organic hemp plants can also play a part in how CBD brands establish their CBD oil cost. Here’s a primer on 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 and CBD 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 mg CBD. 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 use a larger manufacturer for production. The CBD companies then must market and ship their products. Stem said 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
“In most other industries, the labor, materials, and profit are often divided into three equal portions,” Stem said. “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 any type of business write-offs 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 a total cost of 5 cents per milligram (mg) of CBD or more.
However, for most brands Weedmaps looked at, 5 cents seemed to be the low end, while the majority cost between 10 to 15 cents per mg of CBD and rarely exceeded 20 cents per mg.
Because there is such a vast range of CBD products, companies, extraction techniques, and market factors, it can be difficult to pin down a clear average cost per mg CBD. But, as a general ballpark, here is an example CBD oil price comparison, using prices found in Los Angeles, and broken down as price per mg of CBD:
, 1,000mg of CBD. Priced at $39.99, or about 4 cents per mg. , 1,500mg of CBD. Priced at $140, or about 9 cents per mg. , 500mg of CBD. Priced at $45, or about 9 cents per mg. , 400mg of CBD. Priced at $35, or about 9 cents per mg. , 500mg of CBD. Priced at $50, or about 10 cents per mg.
What are the different types of CBD?
CBD can be derived from either hemp or marijuana plants. From a legal perspective, the cannabis plant from which the CBD is extracted makes a big difference. In the United States, a hemp plant must contain less than 0.3% THC. These plants are sometimes referred to as industrial hemp, and they are 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. If it’s legal or not is really the only distinction that matters when choosing whether to purchase CBD derived from marijuana or from hemp.
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.
Full-spectrum CBD oil vs. CBD isolate
Instead of hemp-derived vs. marijuana-derived, it might be more relevant to compare whole-plant CBD, which can be full-spectrum or broad-spectrum, with isolate CBD. The latter results from refining the CBD compound into its pure form, minus other cannabinoid compounds such as terpenes, which provide flavors, aromas, or enhanced physiological or cerebral effects.
Full-spectrum, or whole-plant, CBD contains THC and all of the compounds originally present in the plant, such as terpenes and other cannabinoids. Broad-spectrum hemp is similar to full-spectrum, except that the THC is removed.
When trying to decide between whole-plant CBD and isolate, it may be helpful to know that researchers have identified a synergistic interaction between the plant’s various compounds, known as the ensemble effect or entourage effect. According to this theory, taking CBD alongside the multiple cannabinoids, terpenes, and other chemical compounds produced by the cannabis plant may produce stronger overall effects. 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 noted 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
Is CBD oil lab tested?
CBD oil prices are also affected by legal requirements related to lab testing. Third-party testing ensures that a product is safe and correctly measured and that consumers are getting clean, lab-grade CBD. A licensed lab will make sure a product’s listed 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. Lab tests also analyze moisture content and screen for pesticides, mold, fungus, heavy metals, 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 regulations implemented in late 2018 increased testing costs 40% to 55% for some manufacturers, according to MJBizDaily. This can have an impact on how cost-effective the overall production process is, which in turn impacts the cost per milligram to the consumer. 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 retail prices.
How do you read the labels on CBD oils?
The label on any CBD oil or other 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 oil 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.
Since you’ll be ingesting CBD oils or tinctures, you may wish to find out how much CBD is in each serving — a serving is usually a 1 milliliter (ml) dropper full. To do that, determine the number of milligrams of CBD within the whole product then divide by the number of total milliliters. For example, if the CBD oil contains 30ml of liquid and 500mg of CBD, then you divide 500 by 30 to get about 16.6mg of CBD per serving, dropper, or 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 the individual items. If a bottle of capsules says that each capsule contains 30mg of CBD and there are 30 capsules in the bottle, that would be 900 total mg of CBD. Knowing the total number of milligrams of CBD in a package, whether it’s chocolate or tincture, can help you better compare costs across CBD products.
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 oil 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 oil ever cost less?
According to Flannery, yes, the price of CBD oil and other CBD products will come down, but not for a few years. “I think the primary driver is just the regulatory environment that we’ve lived in for so long has limited the amount of production we can do,” he said.
Beyond the legal landscape, there are many other factors that impact the average cost of CBD oil and other CBD products. Flannery noted it takes time to put together the capital expenditures and build out the infrastructure needed to produce CBD. 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 oil and cannabis than to other similar herbal supplements or oils. Additionally, the quality of plants being grown, extraction methods, and other factors related to the production process all play a role in the average cost-per-milligram of CBD by the time the final product makes it to retail shelves.
“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.”
How Much Does CBD Oil Cost? (CBD Prices Breakdown)
CBD products can be expensive, but there are at least a few reasons for that.
Before we get into details, know one thing: cheap CBD oil is a bad oxymoron. If anyone ever promises to bring relief from every health concern for a bargain price, you’re on the right way to throwing your hard-earned money down the drain.
The pricing of CBD oil isn’t as obvious as some people think. It’s the manufacturer’s liability to take care of the product’s quality because no federal agency has ever regulated the production standards and labeling requirements of hemp-derived CBD.
Although the market is booming and more professionals are entering the scene, the CBD industry is still wild, wild west.
How much your CBD oil will cost relies on several factors, such as the farming practices, extraction method, potency, and the brand’s reputation to name a few.
The price of CBD products can range anywhere between $9.88 and $400. There are different concentrations, formulas, and sizes to consider.
CBD is the latest trend in the health supplement industry, which also impacts the prices.
In this article, we break down the specific costs of CBD oil and show you how to save money on premium products.
CBD Oil Quality: Why Is It So Important?
CBD is a relatively new market that lacks regulation when it comes to production standards and the labeling of CBD products. So far, only one CBD-based drug was approved by the FDA (Epidiolex), refusing to acknowledge hemp-derived CBD as a medicine.
As a result, hemp CBD oil has been thrown in the same bucket as other health supplements. This means that CBD companies can get very liberal in making claims about their products, selling CBD oils that contain little to no CBD. Sometimes, these products may also contain potentially dangerous chemicals such as solvents, pesticides, or mycotoxins.
In 2018, for example, the Center for Disease Control reported 52 cases of poisoning in Utah, which were caused by incorrectly labeled products.
These were products known as “cheap CBD oil.”
As we said, there is no such thing as “cheap CBD oil.
Below we explain the costs involved in making CBD extracts.
Why Are Some CBD Oils More Expensive Than Others?
The process of making CBD oil is very expensive. All production stages, from farming to extraction and third-party testing, require specialist knowledge and expensive equipment, which translates to a higher price tag than you see on the majority of supplements sold over-the-counter.
A high-quality CBD product can have amazing effects on your daily life, but if the company is using low-quality ingredients and cheap extraction methods, you may be putting yourself at risk.
The manufacturer needs to ensure the top quality of hemp for its extracts, use safe extraction technology, and hire qualified professionals that will be able to work on the equipment — not to mention investing in third-party lab tests to confirm the potency and purity of the products.
There’s a lot of resources involved in the process, both time- and money-wise.
But how do you calculate the price of CBD oil to tell if it offers the right value for the money?
On one hand, there are companies claiming to sell premium CBD on the cheap, which is unreal. But on the other hand, lots of companies overprice the value of their product trying to sell “cutting-edge” CBD.
There must be a way to figure out where the honest guys are in the middle of this.
Let’s take a look at how to assess the affordability of CBD oils.
How Much Does CBD Oil Cost?
There’s a simple calculation you can make to determine the cost of CBD oil, and compare it with products from other brands to decide whether the price is too low, too high, or competitive.
What you need to calculate is the cost per milligram of CBD. This figure plays the most important role when it comes to deciding whether or not the product is affordable. You can forget about the formula, size, extra ingredients, and different forms of consumption.
All it matters is how much CBD you’re getting for the money.
CBD can cost between $0.04 and $3.00 per mg. You can narrow down that range when comparing different brands and products by using that metric.
Below we discuss the factors that influence the price of CBD products.
Read on to understand why some CBD oils are more expensive than others.
Factors that Determine the Cost of CBD Oil
The overall cost of CBD oil is influenced by the quality of the ingredients.
Here’s what makes a quality CBD product;
- The hemp source
- Extraction method
- Third-party testing
- The product’s formula
Premium CBD oils are usually priced higher than regular market value because there are rigorous quality procedures involved in the production. But on the other hand, when you purchase from premium brands, you can count on bulk pricing, reward programs, discounts, and coupon codes to save money on their products.
In the end, you’ll pay the same amount of money, or even less, than for seemingly less expensive brands.
Let’s briefly cover the factors that affect the cost of CBD oil.
The source of hemp used for making CBD oil is one of the major factors affecting the quality of the final product. The best CBD oils are sourced from organic, non-GMO, and pesticide-free plants. Using organic farming practices and growing hemp without pesticides or growth boosters is more expensive than mass production, and the prices usually reflect that.
If the company adds other organic ingredients to its formula, the price will likely go even higher.
Fortunately, hemp is now more popular than ever in the U.S., so using American crops becomes less expensive than importing hemp from Europe as most brands would do just a few years ago. As the hemp market continues to grow, the average market price of high-quality CBD products will get lower — it’s inevitable.
CBD can be extracted using a variety of methods, from natural solvent extraction to hydrocarbons, steam distillation, and CO2 extraction.
CO2 extraction is by far the best method to achieve consistently high levels of CBD without using additional heat or toxic solvents. This makes CO2-extracted products more expensive than those made with alcohol, olive oil, or butane. The equipment required to perform CO2 extraction can cost between $135,000 and $150,000, so if a company uses this method, it’s a sign they are committed to quality.
The cheapest extraction method calls for using hydrocarbon solvents. However, these can cause explosions when handled improperly or leave behind a toxic solvent residue in the end product. This is the type of extraction you should steer clear of.
The potency of CBD refers to the total amount of CBD inside the bottle, measured in milligrams. The more potent your CBD oil, the more effective it may be in tackling your symptoms. High-potency oils are also good for people who weigh more or those who know their effective dosage and would like to stock themselves with CBD for several months.
Stronger CBD oils are usually more expensive, but brands often cut down on the price per mg of CBD. This means that buying a product with more milligrams of CBD can be more affordable in the long run, especially if lower-potency oils require you to renew your supplies every few weeks.
Any trustworthy CBD company should send its products to independent laboratories for content analysis. These labs will verify the potency of CBD and look for potentially dangerous chemicals in the oil. The cost of testing oils in third-party labs typically increases the price, but it’s the only way to tell how much CBD is in your oil and whether or not it contains any unwanted substances.
Brands should make Certificates of Analysis for their products public, or at least make them available on request.
Other Costs of CBD Oil: What Else Can Raise the Price Tag?
The brand’s reputation is also a common factor impacting the cost of CBD oil. When you choose to purchase from a premium company with a pristine reputation, you may need to pay a bit more for its products. However, top-of-the-line brands provide organic ingredients, reward programs, special subscription deals, and more. They also use sustainable extraction technologies, employ rigorous quality testing, and offer customer service that can help you select the right products and answer your questions about CBD.
Last but not least, how much your CBD oil cost will vary depending on where you buy it from. Some people prefer to look for CBD oil somewhere near them. If you live in a place where cannabis is legal, you can head to the nearest dispensary, which is no doubt a convenient way to get quality CBD products. But since hemp-derived CBD oil is federally legal, you can find it in vape stores, pharmacies, or head shops, too.
However, products sold locally are usually more expensive than those you can order online due to the costs associated with running a physical storefront. When you purchase online directly from a brand, you significantly less than you would for the same-quality product in-store.
How Much Does CBD Oil Cost?
High-quality sublingual drops cost between $0.09 and $0.17 on average. The low end is $0.05, whereas some oils can cost upwards of $0.20 per mg. Usually, stronger oils will be less expensive per mg than low-strength products.
How Much Do CBD Capsules Cost?
CBD pills and capsules can contain anywhere from 10 mg to 50 mg CBD. The higher the potency, and the more capsules in the bottle, the lower the price per mg, even though the overall cost is higher. The average price per mg of CBD when it comes to CBD capsules is $0.09 – $0.13 per mg. The product can cost as low as $0.04 per mg and as high as $0.20.
How Much Do CBD Topicals Cost?
CBD topicals can take many forms, including salves, gels, creams, and lotions. These products are typically designed to help with localized discomfort. The cost of CBD topicals ranges between $0.07 and $0.10 per mg on the low end and upwards of $0.30 on the high end. On average, CBD topicals cost around $0.12 – $0.19 per mg. CBD topicals are available in various sizes, from 1 oz to 4 oz containers, and can contain up to 1000 mg of CBD per container.
How Much Do CBD Gummies Cost?
CBD gummies are similar to capsules in terms of pricing. They also cover a similar potency range, from 10 mg to 50 mg of CBD per gummy, with prices varying between $0.09 and $0.020 per mg of CBD. Gummies usually come in 30-count bottles, although some companies sell their gummy bears in 60-count or 120-count containers. You can also find brands that offer sample-size packs, with 5 gummies per pack.
Tips for Saving Money on Quality CBD Oil
- Order CBD oil online
- Purchase in bulk
- Subscribe to newsletter
- Join reward programs
- Use coupon codes and seasonal discounts
Costs of CBD Oil: Let’s Wrap Them Up
The process of making CBD oil isn’t cheap, so it would be naive to expect companies to sell high-quality products at a loss. If you see a company that claims to sell premium CBD oils on the cheap, it’s an instant red flag. There are many companies churning out low-quality mislabeled products just to prey on uneducated customers and the lack of regulation.
But does that mean you always have to go big-spender? Are there no affordable CBD products online or near you?
Of course, they are — you just need to know where to look for them.
Make sure that the company you’re going to purchase from uses organically-grown, non-GMO hemp. If the brand uses CO2 extraction to produce CBD oils, it’s all the better because this method doesn’t require additional heat or solvents. Finally, always ask for third-party lab reports. This is the only way to ensure that your product contains the advertised amount of CBD and is free from potentially dangerous additives.
Of course, premium brands price their products a little bit higher than the market standard, but there’s a lot of options to save money on their oils, such as the aforementioned reward programs, discounts, and bulk pricing.
If you want a risk-free way to try different products, look for companies that offer some form of a money-back guarantee. It’s also a sign that the company is confident about its products.
Do you think CBD oil is too expensive? Let us know what you think about the future trend in its pricing?
Livvy is a registered nurse (RN) and board-certified nurse midwife (CNM) in the state of New Jersey. After giving birth to her newborn daughter, Livvy stepped down from her full-time position at the Children’s Hospital of New Jersey. This gave her the opportunity to spend more time writing articles on all topics related to pregnancy and prenatal care.
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Cbd oil for prices
As of 2022, CBD that comes from hemp (a type of cannabis sativa plant) that produces no more than 0.3% THC by dry weight is considered legal at the federal level. State laws vary, so it’s best to confirm any rules and regulations that apply to your area with your local and state legislation.
Is CBD oil safe?
The FDA reports it’s only seen limited data regarding the safety of CBD. Anyone interested in consuming CBD in any form should first consult with their healthcare provider and be aware of potential risks associated with using CBD products, including liver injury, drug interactions and male reproductive toxicity.
Who should use CBD oil?
A growing body of research suggests CBD oil can benefit people with:
- Epilepsy syndromes
- Opioid addiction
- Neurodegenerative disorders and diseases
- Unmanageable chronic pain
- Diabetic complications
Talk to your healthcare provider to learn more about whether CBD oil could be beneficial for you.
Can CBD oil impact the results of a drug test?
Standard drug tests don’t screen for CBD because it’s not an intoxicating substance, nor is it an illegal controlled substance. However, some CBD products contain trace amounts of THC, which can affect the results of a drug test.
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Alena is a professional writer, editor and manager with a lifelong passion for helping others live well. She is also a registered yoga teacher (RYT-200) and a functional medicine certified health coach. She brings more than a decade of media experience to Forbes Health, with a keen focus on building content strategy, ensuring top content quality and empowering readers to make the best health and wellness decisions for themselves.