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CBD Prices Projected to Inflate

CBD Prices are projected to Inflate. That’s according to indicators in the hemp supply chain. Speculation and projections are forecasting this increase within 1 – 2 months from now. That is correct. For the first time in years, CBD Prices are going to increase. In this article we are going to cover 3 reasons why the price of finished CBD products will increase over the next 1 to 2 months.

The Main Reason Why CBD Prices Projected to Inflate:

RAW Material Costs are Higher!

Due to the major crash in price in 2019 and 2020, farmers have not produced as much hemp biomass as they did prior. According to Hemp Industry Daily the data reflect:

  • A 24% decrease from the 375,000 licensed acres reported to the U.S. Department of Agriculture’s Farm Service Agency in 2020.
  • A 39% decrease from the 465,787 total licensed acres of hemp across 47 states that reported to Hemp Industry Daily in June 2020.
  • In just two years, licensed hemp acreage plummeted 44% compared to 511,442 total licensed acres of hemp across 34 states in 2019, a record production year following legalization of hemp as a federally legal commodity crop with the 2018 Farm Bill.

Staggering Decreases in Farmed Hemp

Staggering decreases in the total amount of hemp grown in 2021 makes the price of CBD products go up.

Metal Barrel

With less supply, prices tend to increase with demand holding steady. Biomass has finally seen an uptick from its rock bottom pricing. Prior to 2021, large consumers of industrial hemp biomass were paying around $0.50 to $0.75 per lb. Now we are seeing pricing hover between $0.90 and $1.10 per lb of CBD Biomass and it is becoming increasingly more difficult to find. One of the major issues with hemp biomass this year is that most of it is left over from the 2019 growing season, which means if it was not stored in a climate controlled environment then it possibly degraded or molded.

The Next Step

The next refinement from CBD Biomass is the raw CBD Crude oil which has seen an uptick as well in recent months. At the end of 2021, pricing in volume could be anywhere from $60 – $50 per liter. Now, with CBDa and CBGa demand, we are seeing the price of crude from $75-$100 a liter.

CBD Isolate and Distillate have remained constant, but major producers are hinting at a price increase VERY soon.


Demand Has Increased!

That is correct, the Demand for CBD Isolate and CBD Oils has gone through the roof in the last 2 months. The question is why.

Well, it can be a combination of a few things.

  1. CBDa and CBGa conversions have increased dramatically from the recent study on their ability’s to potentially block the virus from entering human cells. Read more about that here.
  2. Delta 8 is produced using CBD isolate. With speculation and actual laws being passed that prohibit or regulate the psychoactive cannabinoid, demand has been soaring.
  3. More products are coming online that consumers love. New ways to take CBD include drinks from water-soluble technology, gummies, and even prills that give special blends of rare cannabinoids have been popping up all over the world.
  4. New markets are emerging in foreign country’s.

Shortages and Backorders

Yes, it is happening. There are now shortages and backorders with some of the largest producers of CBD Isolates and Distillates. Bona Voluntates team managed to speak with 4 large producers of CBD Isolate and they are selling all of the weekly production by Tuesday every week. Most claim they will ramp up production but when you refer back to the supply chain section above, the Raw materials are going to be much more expensive to obtain, if you can even find them. These constraints are sure to create a rise in the market price of CBD in general.

CBD Isolate

CBD Prices Projected to Inflate! How do I secure my Supply?

CBD prices are projected to inflate, regardless of opinions in circulation. Bona Voluntate can offer contracted volumes today while capacity is still available. Reach out to our team and we will get you plugged in. Our weekly volumes ensure your clients will have their products on time and within reason.

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