Why THC flower wholesale prices so high are compared to cbd?

A significant amount of cbd-rich hemp flower was produced in the u.s. Last year. This resulted in many hemp growers dedicating a portion their production to satisfy that demand. Hemp benchmarks latest data from july shows that cbd hemp plant for smoking was selling at almost 20 times the cost of cbd biomass for cbd extraction.

However, wholesale prices for cbd hemp flower that is edible are still significantly less than those of cannabis flower grown outdoors or in greenhouses with high tetrahydrocannabinol levels (THC). Editor’s notes: indoor THC is not included in the comparison. However, smokable cbd hemp flowers and THC high-tetrahydrocannabinol (THC)-rich cannabis flower are basically identical in terms if cultivation and processing.

The prices of THC and cbd-rich cannabis flowers are much more expensive than those of cbd hemp.

Legal cannabis businesses are subjected to significantly higher regulatory burdens. These include security measures, seed-to–sale tracking and waste disposal mandates. Additionally, there are higher licensing fees that can cost up to six figures in some states. These costs are passed to consumers in the form of product pricing.

THC has long been used for various purposes by consumers, while cbd has only recently emerged. THC cannabis flower is in high demand. In addition, legal cannabis markets have seen an increase in the number of consumers for their products as a result of the covid-19 pandemic and the rising number of customers leaving the illicit market. As evidenced by the record-breaking numbers of sales from numerous states,

Future of hemp flower

What does the future look like for cbd hemp? Do the lessons learned from the legal cannabis market offer any insight into future pricing trends for cbd hemp flower?

The future outlook is uncertain given current regulatory conditions. It is essential that significant regulatory and legal questions are resolved before the market in smokable cbd-hemp flower can mature. Additionally, bans on smokable cbd cannabis flower being implemented across several states have come under legal challenge.

It remains to be determined if there is actually any demand for cbd hemp oil. The market size of cbd hemp flower has yet to be quantified with any degree accuracy, rendering future projections meaningless.

If legal cannabis remains legal, and the demand for cbd hemp continues, it is possible to make reasonable assumptions regarding wholesale pricing.

One assumption is, that price volatility will diminish over time. The legal hemp sector is still young. Hemp benchmarks has been evaluating prices for the past 16 month due to excessive enthusiasm on the production end. Many states including Oregon, Colorado, California and California have legalized cannabis. Although they experienced the same issues in their initial years, these markets are now more stable as they mature.

Prices for cbd hemp flower that can be smoked could rise if regulations are resolved in favorably. THC cannabis plant flower is currently priced at a high price due to the recovery. Legal cannabis markets have grown demand, and some early entrants have left (either through bankruptcy or acquired). This allows remaining cultivators and producers to better monitor and balance supply and need.