Why does one of the most promising ingredients in decades cost as much as high end face creams?
I’ll never forget my mom’s first reaction to using CBD last year. My mother, late in her 70’s has had every ache and pain that you can imagine. A decade earlier she had her shoulder replaced due to the overwhelming pain. As she has gotten older, she has struggled to manage through the aches and pains of growing old while staying active and relevant for her aging children and grandchildren. So when I was building a CBD brand last year, I thought CBD might be helpful. I gave my mom two bottles of CBD softgels and told her to tell me how she felt in a week.
My mom called me back raving about the product. After taking the 25mg soft gels two times a day, she had felt a big difference in her pain. Then I told her that the two bottles that I gave her had a retail value of $160. She practically spit out her coffee. “$160? That’s crazy,” she said, “that CBD works great, but why does it cost so much? There’s no way that I can pay $160/month!”
It’s inevitable that new ingredients start off at a higher price and as more competitors come into the market that the prices will drop. However, CBD pricing has been able to defy gravity even as many new competitors have jumped into the market. I see this as a massive problem for the industry as well as consumers.
But first, what is CBD? In short, CBD, is a non-psychoactive cannabinoid of the cannabis plant that has been used by increasing numbers of people to treat a variety of different conditions and ailments. It has exploded in popularity in large part because it doesn’t have the intoxicating qualities of THC, but has been reported to help with pain and anxiety.
So what’s the problem with CBD being expensive? If a product like CBD has such fantastic benefits shouldn’t it have a high cost? Doesn’t the benefit justify its high price? My answer is absolutely not for a few reasons:
- The price of CBD is being kept artificially high. When CBD first came on the scene, after the 2018 farm bill passed, the legal supply of CBD was low. Although everyone had suspected that federal action on industrial hemp (from which CBD is derived) was coming, the inclusion in the farm bill took many by surprise. And because industrial hemp is an agricultural product, you can’t just whip it up in a lab – you need a good growing season to get the raw material produced. However it is now 2021 – over 2 years since the farm bill passed, yet CBD retail prices have not budged. Why? Because manufacturers have been passing the savings to investors instead of consumers
- One dose is not enough. For many people to feel the benefit of CBD, you must use the product regularly – whether that is an oral tincture or a muscle rub. It’s only after 4-5 days of regular use that many people begin to feel the effects of CBD. So if you purchase a 1oz bottle of CBD tincture that lasts for 30 days for $60-$70, that adds a significant expense to a family’s monthly health care spending.
- The population that benefits most, has the least disposable income. For aging senior who wish to be active like my mom, CBD can be a real lifeline. It’s ability to treat the aches and pains of aging can help aging seniors to continue to garden, play sports, and go walking with friends. This has the ability to increase the quality of life of many seniors. Unfortunately, many seniors on a fixed income have even less flexibility to spend an additional $60-100 a month on CBD products.
So what’s the solution? Well, it’s inevitable that with CBD prices so high, much like other supplements like St. Johns Wort or Echinacea when they were new, companies will inevitably enter the market with lower cost options. Unfortunately, some of these companies will get to the lower price with lower potency (fewer mg of CBD per capsule or tincture bottle) or lower quality – neither of which is good for consumers.
Fortunately, Elly’s Home Remedies was created with the vision to substantially help our parents and grandparents through natural products like CBD. Elly’s was named after my partner’s grandmother who would grow medicinal herbs in her backyard and then blend them into oils and creams. Elly’s oils and creams were used to treat a range of ailments – from headaches to sore muscles to anxiety. We were inspired by Elly’s story and by the unusual ability for CBD to positively impact our parents and grandparents so we formulated and launched a line of product that 1) has CBD sourced from local farmers 2) is lab tested to ensure purity and potency and 3) very competitively priced and targeted at the active senior community.
It’s inevitable that the CBD market will continue to grow and develop as farmers and new companies jump into the industry. However, I would like to make a plea to everyone in the market to think of CBD less as the new “gold rush” and more as a product that has the potential to significantly impact the lives of our loved ones – our parents and grandparents – who can most benefit.
