If you are following the CBD news recently, you should be aware that CBD products have gotten cheaper and cheaper. According to industry experts, chances are the low prices will stay the same. But why have they gotten so cheap? This article aims to shed light on that question. Below are the key reasons why they have gotten so cheap. Without further ado, let’s start:
- Pricing war
Pricing war between rival manufacturers will always benefit the consumer in the form of reduced market prices. One of the pioneers in hemp CBD – Bluebird Botanicals have cut the prices of their products 10 times already since their introduction back in 2013. Other companies have also reduced their prices to compete with manufacturers that are reducing their prices.
Currently, there is a price war on CBD products as a result of the passing of the Farm Bill. This point will be expanded further in the following section. The pricing war is also motivated by the Covid-19 pandemic, also discussed below.
- Excess supply
There is currently an abundance of CBD products in the market. One reason for this excess supply is the lifting of restrictions on hemp. Last December 2018, the Agriculture Improvement Act was passed. This act is also known as the 2018 Farm Bill, which has taken low-THC hemp away from the Controlled Substances Act that regulates dangerous substances. On the other hand, marijuana remains on a schedule I classification, which means that it is still legally prohibited.
Due to the current pandemic affecting the world, CBD companies have reduced the price of their products. One such company, Kat’s Naturals have reduced their price to as much as 40% because of the Covid-19 pandemic. The pandemic has caused many people to tighten up on their expenses, and companies have to lower their prices to compensate.