When we look at the CBD hemp price per pound, we see that the market likely has more products than it can process and use. Because of this, the cost of hemp has decreased and is lower than it has been in a while. While the price may be low right now, that doesn’t mean it will continue to decline. It may begin to level as the hemp market stabilizes. Many factors affect price trends. You need to understand the type of product, moisture content, quality of the product, and market trends. Statistics for this article are from ACS Laboratory.
CBD Hemp Price per Pound: Trends by Product Type
CBD Biomass (Raw)
This type applies to the product that includes plant material. This is what most producers use to create CBD. It is taken from the leaves and stems after the hemp plant’s buds and seeds have been used. The price for biomass usually depends on how much CBD is in each pound. The measuring is done based on dry weight (80%). The price was around $4 per % of CBD/pound mid-2019. This has dropped by just over 65% as of early 2020 and is currently selling at approximately $1.30.
CBD Flower (Dried)
This product includes the bud (flower) and trichome parts of the plant. They are removed from the stalks and leaves that become the biomass. Dried flowers can be smoked, sold on their own, or in pre-rolled joints. Dried flowers get more per pound than biomass as they are prepared by cutting and trimming and are ready to hit the market quickly. Halfway through 2019, CBD dried flowers were selling for about $350/pound. Since then, it has dropped to $226 per pound.
Crude Hemp Oil
The hemp oil is taken from the plant through various methods. Some use pressurized C02 or other solvent extraction that utilizes ethanol or hydrocarbon. It has all of the cannabinoids, terpenes, and flavonoids that are naturally part of the plant. This includes THC in very low amounts. The hemp oil is purified further to remove the natural plant compounds like waxes and chlorophyll. This increased potency but may hurt the terpenes and flavonoids. This product, as with dried flower and biomass, has dropped in value. It was $2,066 per kilo mid-2019 and is currently $668. That’s a 68% drop in market value.
Distillates (Refined Hemp Oil)
Distillates are produced when crude hemp oil is distilled to make a much purer product. It is refined and has increased value in the market (learn more about CBD hemp price per pound and where to buy CBD Oil in Australia). There are three categories of distillates:
- CBD full spectrum oil has all cannabinoids, terpenes, and flavonoids.
- CBD broad spectrum oil has only partial or no cannabinoids, plant material, and terpenes.
- THC distillate with no THC is a broad spectrum oil that has removed all THC through advanced processes like chromatography.
The market value for distillates varies by type. Full-spectrum has the lowest price and THC-free distillates get nearly double what full spectrum does. As with other products, a decline has happened recently with the current price for full-spectrum being $2,528. All three categories have lost almost 55% of their mid-2019 worth.
These isolates are the purest CBD products on the market. They are made by taking all of the plant parts including terpenes, flavonoids, and cannabinoids and can be made in granular or powder form. They don’t have any taste or smell and have 0% THC with over 96% CBD content. Oddly, these isolates aren’t as desired when compared to refined oils. The cost for CBD isolate is currently $1,624 showing a drop of 66% since mid-2019.
Industrial hemp seeds are utilized to make various hemp biomass. Grains are used for food and products in the beauty industry and fiber from stalks are used for paper and fabrics. Interestingly, industrial hemp is only a small portion of the CBD market but demand is present and supply is reduced. While many hemp products have dropped in value, industrial hemp seeds have gone up, with the exception of the beginning of 2020. They doubled in price between May and October 2019 at $5.59/pound and dropped to $4.47 per pound. That said, they have held their ground more than other hemp products.
No matter what type of hemp product you are dealing with, cannabinoid levels are important. A good example of this is when you are pricing biomass. The cost depends on the percentage of CBD per pound. Distillate prices are affected as well. THC content affects the wholesale price. If hemp oil is completely stripped of THC, it garners almost double the price of what full-spectrum oil gets. The other cannabinoids, such as CBG and CBN, also affect the price. CBG biomass sells from $175 to $325 per pound.
Supply and Demand
No matter what CBD hemp product you are producing or buying, if there is too much on the market, pricing goes lower. Current oversupply means that almost 60% of hemp growers cannot find a place to sell their product. Too much product means a lower CBD hemp price per pound for everyone.
While CBD hemp price per pound is trending downward at the moment in the States, that does not mean it is going to stay there. It’s a new market and is somewhat volatile as businesses go through a learning process. It will correct itself sooner rather than later and the market will grow and stabilize. Growers will have to adjust their crop levels, get contracts in place, and find ways to store hemp that can’t be immediately sold. Everyone in the market, be it hemp or weed, has to adjust and strategize. Prices always vary by product and state by state but quality products and proper projection of supply and demand makes the CBD hemp market profitable for everyone.