A new market survey conducted by CBD market research specialist company Leafreport found that CBD products available on the market vary in pricing by at least 4,718%, calling into question whether the extreme variability of product costs in this marketplace correlates well with the quality of the products available.
 
While the price difference narrowed from the 5,222% the company reported on in 2020, the drastic cost difference on a per-milligram basis is still quite profound compared to that seen in most other dietary supplement categories. Because CBD, the production of which was legalized in 2018, is still not fully subject to the same FDA regulations and oversight that dietary supplement ingredients receive, consumers are vulnerable to more variable ranges in pricing and quality, the company reports.
 
Leafreport’s 2021 CBD Pricing Report is based on data collected from 137 CBD brands, and a total of 3,203 products were analyzed. Based on the per-milligram cost and potency of the products tested, the company also broke down the companies analyzed into three grades in order to provide consumers clarity regarding their valuations of the products assessed, which included “bargain grade,” “market grade,” and “pricey grade.”
 
On average, CBD products of all types declined in price from last year by 11.25% – the cheapest form of CBD was isolate, while the most expensive product type remained pet edibles. CBD topicals and creams reduced in price more than any other category, decreasing by almost 20% over the past year.
 
Leafreport found that the cost of raw material and ingredients, costs related to geographic regions in which businesses operate, labor costs, growing conditions, hemp quality, and production costs are the leading reasons for the variability in pricing observed in the marketplace in 2021. However, it should be noted that high-priced CBD is not unequivocally of greater quality.
 
Cheaper products, as told by experts that Leafreport interviewed, reflect that a company could have spent less money on research and development, and that the CBD may have lower potency and purity testing involved in its production. The product may also contain other sub-par ingredients.
 
Leafreport’s analysis of each of the brands and products, as well as product types, that it tested can be found here.
 
“It’s certainly encouraging that across all the CBD product categories there have been no increases in price between 2020 and 2021,” Emma Francis Stone, author with Leafreport, said. “In general, CBD prices decreased from last year by 11.25%. Nonetheless, the significant discrepancies that differentiate prices between products in the same category points to market inconsistencies in CBD pricing. As a result, it really falls on the consumer to carry out their due diligence before purchasing a CBD product, to ensure they are receiving the highest-quality CBD extract at a fair price.”