current price for 1 liter of cbd oil wholesale

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

Image lightbox

“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

Image lightbox

“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

Image lightbox

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

Image lightbox

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

Image lightbox

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.”

Wholesale Hemp Prices

Kush.com sees hundreds of wholesale hemp transactions every month from across the United States. This perspective on wholesale hemp & cannabis prices is a useful tool you can use moving into the second half of 2020.

Below you’ll find prices for different hemp categories over the last 6+ months, and the current market wholesale hemp prices. We will occasionally update this page with new data throughout the year, so be sure to bookmark it.

Wholesale Hemp Biomass Pricing

CBD content and quality matters! The lowest recorded price was under $7 per pound while the highest approached $40 per pound.

CBG Biomass has averaged around $61 per pound over the same period.

Wholesale CBD Crude Oil Pricing

The average price for smokable CBD concentrates has been around $9.52 per gram.

The average order size since November 2019 has been 11 kilograms.

Wholesale Hemp Flower Pricing

Since February 2020, the whole hemp flower price has held steady around $160 per pound.

Nearly 300 transactions were used to calculate this data providing a solid baseline for the hemp industry.

Wholesale CBD Distillate Pricing

Since January 2020, the average price for CBD Distillate has been around $1,360 per kilogram.

Other popular cannabinoids such as CBG, CBC, and CBN continue to increase in demand.

Wholesale CBD Isolate Pricing

“Samples” or small orders of CBD Isolate sold for upwards of $5 per gram.

CBG Isolate ranged from $5 per gram to over $10 per gram depending on the size of the order. Wholesaler buyers are commonly seeking discounts when ordering in bulk.

Wholesale Hemp Seed Pricing

When sold by the pound, the average price for hemp seeds has been around $578 per pound since December 2019.

Looking at per seed prices, we have seen everything from $0.15 per seed to over $1 per seed, but find that the average cost per unit is around $0.55 for quality genetics.

The average price for CBG seeds has been $6.53 per pound during the same time period.

Wholesale Hemp Pre-Roll Pricing

As mentioned before, quality matters! Hemp and CBD Pre-Rolls ranges from a low of $0.75 per preroll to $1.50 per unit. That is a HUGE spread considering the supply available on the marketplace.

The average wholesale order size for hemp pre-rolls was right at 212 units.

Wholesale Hemp CBD Edibles Pricing

Hemp infused edibles continue to climb in popularity, but show a large variance in price based on category.

Wholesale prices have shown hemp edibles sell for between $0.18 and $1.00 per unit with an average order size of 1,200 units.

More and more buyers are searching for CBD infused edibles and the pricing trend could continue to climb.

Current Wholesale Prices

To calculate the current wholesale hemp prices we looked at sales over the past 60 days.

How Price Indexes are Calculated

No data set is perfect. There are some considerations to take, when looking at the analytics and making your own business decisions.

  • The Kush Marketplace is B2B, prices will differ for direct sales
  • Within product categories, quality of the product can vary
  • Additional costs might have been added depending on packaging or shipping concerns
  • Large orders often involve a price break, and smaller orders may drive the average price higher
  • These sales took place on Kush.com and could differ from prices on the outside marketplace

Ultimately, I’d recommend giving these numbers a margin of error of about 10-15%, and judge your products quality honestly before pricing higher or lower on the spectrum.

Hemp Outlook for 2020: Are Things Looking Good or Bad?

As we enter the second half of 2020, where do we see prices going? There’s always two ways to view a trend, and usually both sides have good reasoning.

Bullish Perspective: The Crash is Over

Even with the charts largely trending down, there’s plenty of positive points to look at moving forward. To start, prices seem to have hit the bottom and flattened out compared to ‘Pre-Covid’ price crashing. Additionally there’s been a small uptick in pricing in nearly every category in April to May.

Another positive could be the rise of ‘Self Care’ products following Covid-19. CBD is being introduced into home products at high rate, many of which are currently seeing a rise in demand. (Yes, there’s already CBD Hand Sanitizer.)

Virus aside, the demand of CBD could rise dramatically in the coming months and years on its own. Here’s a quote from a recent Forbes article written by Abbie Rosner, and published on May 29th:

Because boomers’ awareness of CBD’s health benefits is growing, Lee explained, many are shifting from trial use to becoming daily users. In fact, the number of boomers who reported using CBD 5 or more times per week rose from 36% in 2019 to over half (56%) in 2020, according to Brightfield Group’s consumer insights. They also found that 19% of boomer CBD consumers reported using CBD multiple times per day.

Forbes

Bearish Perspective: Rough Harvest Ahead

It’s not difficult to be negative in 2020, and the hemp market isn’t immune. Many hemp businesses have closed shop, and this could mean a flattening or dip in supply, but it also means more ground for the consolidation of big brands. As with any emerging market, smaller operations will be forced into niche areas while a few big brands start to dominate the main stage. Harsh outside conditions will only speed up the process, putting out smaller farms and leaving the market open for big players.

Harvest is coming! If prices stay low into July-August, the first batch of light dep plants will be harvested flooding the market with supply. It’s not likely prices will start to rise steadily while supply is increased, so the best you could hope for is a steady market come September and ‘Croptober’.

If you’re looking for a consistent supplier of CBD Isolate at a fair price, check out the listing below: