How Much Does CBD Oil Cost?

Taking into account the amount of CBD Oil products that have flooded the market in recent years, it’s safe to think that competition should stabilize the market as far as prices are concerned. However, we have not seen any signs of stability approaching this industry.

The answer to this straightforward question is harder than you think. The fluctuation in cost, and therefore the price of CBD oil, is due to several factors pretraining production, quality of the product, market regulations, and marketing strategies.

The Production of CBD Oil

When it comes to obtaining the raw material, there are two main strategies that companies lean towards. Either buying from American hemp farms or using imported raw material from European or Chinese Farms.

The first impact that comes to mind is the international price of this material, as well as the added cost related to the import logistics. However, some companies can afford to offer lower costs when buying from foreign farms. While hemp farming is regulated in some states, the conditions in which imported hemp was grown, is not.

The Risk Behind Imported Hemp

Ideally, given that the product is aimed for human consumption, the hemp must be grown in nutrient-rich soils, using natural growing practices and avoiding the use of toxic pesticides.

Nevertheless, when importing from sources outside the U.S.A., there is no official requirement to neither refrain from using contaminated hemp nor informing the consumer about its origin.

Quality of the Product

There are, namely, four factors affecting the quality of CBD Oil: potency, extraction method, hemp source, and third-party lab testing.


The potency of the oil relates to the amount of CBD Oil it contains. Generally speaking, the higher the strength, the more effective the product is for severe treatments. The cost of the product on a USD/mg basis will be less for higher potencies than for smaller ones, yet the final price of the bottle will be more expensive.

Preferably, you want to buy a CBD Oil that better suits your dosage need, yet getting a higher potency could eventually save you money in the long run. Don’t forget to reduce the dosage to meet your needs!

Extraction Method

The extraction method can vary from company to company. The most common methods are:

  • CO2 Extraction (most efficient for extracting high concentrations of CBD)
  • Steam Distillation
  • Natural Solvent Extraction (usually ethanol)
  • Hydrocarbon Extraction (risk of toxic residues)

While CO2, steam distillation, and natural solvent extractions are considered safe, hydrocarbon extraction is vastly questioned. Although it might be a more inexpensive method, hydrocarbon extraction, due to the risk of toxic residues, is considered less safe and potentially harmful.

Furthermore, studies show that extraction lab startups require planning and equipment amounting to investments in the range of $400.000- $800.000., which impacts the final consumer price.

Hemp Source

In addition to the origin of the hemp as explained above, the best CBD Oil comes from organic hemp, pesticide-free, and non-GMO. This type of farming requires more intensive labor for which the whole process becomes more expensive.

Another fact affecting the cost is the add-ons to the final product. If those components are organic, pesticide-free, and non-GMO, then those costs will be higher compared to other products.

Third-party Lab Testing

Many companies resource to third-party lab testing to guarantee the quality of the product. By making the third-party lab testing results available to its customers, the company ensures transparency by offering what they claim to offer.

Again, this cost passes onto to the consumer on the final price of the product.

Market Regulations

As opposed to other consumer products, the requirements on labeling, origin, lab testing, and safety throughout the production chain are slim.

The lack of regulation not only puts consumers at potential risk but as well makes the whole process less cost-effective for the producers. This is the reason why the NIHC encourages the FDA to take action and finally set the standards.

Marketing Strategies

Other factors like brand positioning, variety of products offered such as CBD OIL Drops, Tinctures, Pet Treats, or CBD Inhalers; makes it even harder to compare the actual cost of CBD.

So, How Much Does Cbd Oil Cost?

Considering all the variables and it’s fluctuations, it is tough to determine the cost of CBD Oil in such a loosely regulated market. The average cost can go anywhere from $ 0,04 /mg (low end) to $ 3,00/mg (high end). 

Setting industry standards and regulating the market along with the changes in supply and demand it’s of utmost importance. Allowing not only the companies to design better cost structures and offer more competitive prices but as well, ensure availability to the final consumer.


In conclusion, the cost of CBD Oil in the given industry conditions is very hard to assess. If we add on the fact that it has become a trendy product in the last few years, the price is at its peak.

However, now that you are aware of factors affecting price, you can use the information to choose a suitable product for you that focuses on your specific needs.


– POLLANN, MD, MICHEL (Author) – CBD OIL PRODUCTION: Extraction and Medication; Explore the Healing Power of Cannabidol – February 3, 2019

– H.R.5485 – Hemp Farming Act of 2018 – 115th Congress (2017-2018)

– Industrial Hemp Market by Type (Hemp Seed, Hemp Seed Oil, Hemp Fiber, and CBD Hemp Oil), Application (Food, Beverages, Personal Care Products, Textiles, and Pharmaceuticals), Source (Organic and Conventional), and Region – Global Forecast to 2025