Digital CBD product rating index platform CBD Validator released a report today that said wide variation in prices of CBD extracts at the retail level is causing confusion for consumers, who face product price differences that can range from “from a low of $0.03 [per] mg to a high of $1.99 [per] mg,” with the average retail cost at $0.12 per milligram, as an ingredient in CBD-infused products.
The Retail Pricing Of CBD Oils Creates Consumer Confusion And Challenges Industry Trust report described pricing variations that defied conventional retail strategy or wisdom, and said, “Price disparities should be an alarm for CBD manufacturers and marketers. Price value is an important criterion for consumer purchase decisions. As CBD products become more mainstream, consumers will make a more informed determination on what is fair pricing and those manufacturers beyond the norm may face significant sales challenges.”
CBD Validator added that consumer confusion may lead to lack of credibility for CBD vendors overall, especially as hemp prices continue to decrease and consumers become more aware and educated on products and industry quality standards.
“Even normal pricing conventions seem ignored by CBD manufacturers. Consumers would reasonably expect to pay less on a per unit basis for a larger quantity bottle. However, the average cost per mg for the 1,500mg bottle is actually higher at $0.089 [per] mg than the 1200mg put up at $0.082 [per] mg,” the report described further.
Report data was gathered from a database analysis of manufacturers suggested retail price (MSRP) on more than 1,500 CBD products currently available for sale.
Other key report points included:
- The range of pricing is enormous. The least expensive 1000 mg bottle is $30 and the most expensive is $199.99—a nearly seven-fold difference.
- The most popular container size is a one-ounce dropper bottle, which accounts for 70 percent of the products marketed.
- The six most popular strengths of CBD are 250mg, 500mg, 750mg, 1000mg, 1200mg, and 1500mg [in that order].
The CBD Validator rating system uses several standards to review CBD products currently on the market, and provide current, accurate product information to industry members and consumers. Rating criterion includes “type of CBD, extraction method, assurance, quality, CBD per dose, and cost per dose,” and uses a 50-point rating system.