In July of 2019, the CBD market was estimated to be valued at 1068.54 million USD. Since then, it’s only continued to grow.
CBD oil is rapidly becoming one of the most profitable and in-demand commodities. It’s easy to understand, therefore, why such a huge number of businesses and vendors have added white label CBD oil to their shelves.
However, despite the increase in popularity, many CBD businesses struggle to understand what constitutes a fair and reasonable price when buying from wholesale vendors. Wholesalers advertise a wide range of prices for CBD oil. So how much is too much?
As industry leaders, we feel that is our duty to clear the air around this issue. In this article, we’ll take a closer look at CBD oil prices and discuss industry standards for wholesale purchases.
What Goes into Calculating the Cost of CBD Oil?
Before we take a look at how much you should be paying, let’s first discuss the cost of CBD in general. There are two primary factors which affect the price of CBD oil: production and testing.
- Production: Costing between $300 and $600 per acre, hemp harvesting is a fairly expensive process. Similarly, hemp extraction requires a significant investment of time, technology, and capital.
- Third-party lab testing: Laboratory testing is a crucial step towards ensuring the quality and safety of CBD products. As of early 2020, it’s still an expensive and lengthy procedure.
What Should You Expect to Pay for White Label CBD Oil?
When it comes to white label CBD oil, you tend to get what you pay for. That said, there are some wholesalers that will be able to provide you with high-quality products for a manageable price. For others, prices will be much higher. That said, our research suggests that the average price you should be paying for CBD oil is around $0.11 to $0.17 per milligram.
If you’re currently investing more than that for your supplies, there’s a strong chance that you’re overpaying. If you’re concerned about this, we recommend shopping around and comparing prices among a few different distributors. This will give you a better understanding of industry standards.
Buy High Quality CBD Oil Today!
Hemp Depot is proud to offer a wide selection of white label CBD oil products at an affordable price. We are one of the nation’s largest CBD manufacturers and have helped many CBD brands grow and achieve success. Our commitment to quality, excellence, and purity sets us apart from any other distributor in the industry. To learn more about our inventory or partnership programs, please contact our office.