Leafreport has published a new report that analyzes the pricing of CBD products.
Leafreport has published a new report that analyzes the pricing of CBD products. The report compares pricing of CBD products between April 2021 and November 2021, based on 3000 CBD products from over 100 brands. Leafreport used a standardized pricing reference point of cost per milligram of CBD, and created a price index to compare brands. This price index divided brands into three categories: 1) bargain grade (price range of $0.01-$0.076/mg CBD), 2) market grade (price range of $0.077-$0.167/mg CBD), and 3) pricey grade (above $0.168/mg CBD).
Leafreport’s key findings were that CBD prices have decreased somewhat in the period between April 2021 and November 2021 by $0.122 per mg of CBD, or a decrease of 1.96%. The gap in price between the least expensive and most expensive CBD products was 3561%, down slightly from 3682% in April 2021. The least expensive category was CBD isolate, which as 19% cheaper on average compared to April 2021, while CBD capsules grew in price by 2.55% since April 2021. Leafreport found that the greatest price between the most expensive and least expensive products was in the creams and topicals category. The gulf between products in that category was 11142%, which was a significant increase since April 2021, when the difference was 4718%.
There are a variety of factors that can influence price, states the report, such as cultivation process, extraction type, and the vertical integration of a brand. All these things can influence quality as well. For example, the amount of CBD does not necessarily reflect quality. CBD isolates can have a higher milligram count but it’s a less expensive process than creating a full spectrum product that contains a number of other beneficial compounds such as minor cannabinoids and terpenes which may enhance the effectiveness of the CBD in a product. There is also variation in quality within every pricing category. So, not all inexpensive brands lack quality, and not all the most expensive brands are of the highest quality. While some brands may be justified in asking a higher price, others may lack transparency, offering consumers no information as to why they are charging a premium. This fluctuation in quality and price is emblematic of an unregulated marketplace, says Leafreport.
For more details, the entire report can be read here.