Why is CBD oil so expensive?

CBD oil is fairly new in the market, and its demand increases daily, hence the high costs. Besides, the high costs of CBD oil are a result of CBD oil attracting costs during hemp growing and extraction and CBD transportation. Moreover, CBD farms and manufacturers incur extra costs to get the hemp farms licensed, and these costs are all reflected in the cost of CBD oil. This article details why CBD oil is always expensive, so peer into it to understand the key points for the high cost of CBD oil.

i. Hemp Growing and Harvesting Is Costly

CBD production or processing cycle involves cultivating the land, planting the hemp seeds, weeding the plants, and harvesting the matured hemp. It is a costly process, attracting costs for human force and machinery. When the CBD oil is finally out, the manufacturer has to generate revenue, make profits, and get back the much he spent on the CBD oil, which is then reflected in the high prices of the cannabinoid.

ii. CBD Oil Is Fairly New

Usually, any new product attracts higher costs, especially on-demand, and CBD oil is no exception. It has been outlawed for the longest time, during which it remained under the radar. When the Farm Bill was finally passed in 2018, making it federally legal, all everyone who ever wanted to have CBD oil went for it, making it a hotcake in the industry. The results of the high demand for CBD oil are its high prices. Even when more companies open up to meet the needs of CBD users, it never seems to be enough, and prices might fluctuate but remain high at the end of the day.

iii. Cultivating Hemp Plants Attracts A Lot of Money, Especially Because Licensing

CBD production is a business, and it must be registered, and the manufacturers have to pay for licensing every year. Most states have a department of agriculture that hemp growers have to register with and pay for licensing every year, attracting financial investments. Hemp licensing is expensive because most authorities calculate the cost based on acreage, and the bigger the cultivation land, the higher costs.

iv. CBD Extraction Is Costly

A lot of money goes into extracting CBD oil from the hemp surfaces, which is reflected in the cost of CBD oil. Many extraction methods include CO2 extraction and liquid solvents such as alcohol. The CO2 extraction, for example, acquires massive financial investments in the machinery, raw materials, and workforce. The process has at least three chambers, all having CO2 gas but at different states of matter. The costs are then factored in a while pricing CBD oil, making it expensive.

v. Third-Party Testing CBD Oil Is Expensive

The extraction process does not end the process; manufacturing CBD oil takes many independent processes, most of which are costly. Most hemp growers test hemp plants on the farm and the soil, taking financial investments. However, after extracting CBD oil, the extracts must be tested, and a CoA produced to show crucial information, including the cannabinoid profile, THC & CBD contents of the oil, and its purity against standard contaminants, including heavy metal, filth, mold, organic matter, solvents, and toxins. 3rd party testing is expensive, especially when done by a reputable brand that's ISO 17025 certified. These costs, too, feature in CBD oil prices, making it expensive.

vi. The Gray Zone in CBD Oil Legality

The other reason CBD oil turns out to be expensive is the gray zone in the legality of CBD oil. Admittedly, the Farm bill was passed in 2018, making CBD oil legal at federal levels. However, since states were given the mandate to craft their CBD laws, the laws vary widely, and in some areas, CBD legality is in the gray zone, meaning things are somewhat unclear. Because of this, states that reserve the right to check shipments allow security agents to detain CBD transportation, delaying the deliveries. And more often than not, the manufacturer must pay a fine for doing this. CBD oil is prepared and priced with such unexpected events in mind, making it expensive.

vii. Many Ingredients Go Into Making CBD Oil

The other explanation for the high CBD prices is the cost of the ingredients v featured in the oil. Because of the bitter taste of alcohol and the earthy taste of CBD oil, ingredients are added to improve the taste. The more the ingredients, the higher the costs, which are then translated into the cost of CBD oil.


CBD oil is a new product in high demand, making it expensive. Other costs go into producing CBD oil, reflected in the ultimate cost of CBD oil. Land preparation and hemp growing, harvesting & processing are expensive in terms of human force and machinery, and the costs are reflected in CBD oil prices. Licensing hemp growing and CBD shipments also attracts costs.