A recurring question for those who already have their own legal weed supplier or those starting out with a business in the legal cannabis-cannabis sector is frequently asked, both to understand the right balance between quality and price and to get an idea of the margins that can be achieved.
Recorded business in the hemp sector is increasing by almost 20% every year, with market forecasts predicting a value share of over €90 million in 2028.
When buying and selling CBD products finding the ideal supplier is not always so easy, CBD flowers, CBD oil and cosmetics differ in the way they are produced which affects the price and as you can see by searching online the price ranges of the same product can vary and not just a little, let's try to understand why for each individual product.
The types of CBD cannabis flowers with low THC content (0.5 for Italy, 0.2 for abroad) are mainly 3 - outdoor, green/glass house and indoor, which differ in quality and price, which can vary according to market availability.
The product with the most availability is definitely outdoor (cultivated outdoors) especially in Italy and Spain, thanks to the conversion from other types of cultivation, it is a product that is generally of low quality, with flowers that are not very compact, dark and generally less "fragrant". They have a taste that varies according to the type of soil and sometimes, due to the lack of preparation of the grower or lack of experience, they are the lowest quality in the hemp sector. The price varies according to genetics and the farmer's land availability from 150€ to 500€ per kilo.
Green houses (in PVC greenhouses) or glass houses (in glass greenhouses) are among the most sold in the European market. If grown with the right technical preparation, they have a good yield and, compared to outdoor plants, they have a more compact and clearer flower and a scent that can make them look like indoor flowers. The most meticulous farmers prepare them in dedicated soil to guarantee an organic and metal-free product, obtaining good results with the right balance between CBD levels and the other cannabinoids. Their price can vary from 500€ to 1200€.
Finally, indoor cultivation, grown in facilities with a controlled environment and artificial light, differs from the other two cultivations in that they can be grown in a continuous cycle throughout the year and are absolutely, with the right technical preparation, the best flower on the legal cannabis market. Very compact and resinous flowers with the right balance of cannabinoids are the most sought after among those who want to distinguish themselves with quality products for the most demanding customers with prices from 1200€ up to 2000€ for the best qualities.
If for the inflorescences you have the sense of smell and what the product looks like visually, then for CBD oil it is a different matter. CBD oil is authorised by the European Community but has no control body, so you can only assess the oil by testing and comparing the analyses provided by the supplier. The key is where the oil comes from, how it is processed and whether the laboratory is ISO certified. While in the United States it is already certifiable as a food grade product, in Europe there is still a long way to go. Selecting a quality product is not always so obvious, and choosing full spectrum over CBD only guarantees a better effect. Another key component is the choice of carrier oil, see a previous article, hemp is always the best, and the type of extraction, with or without CO2. Extraction without CO2 is still a novelty, but it allows for a much higher quality product measurable in benefits for the consumer. When it comes to prices, the market is still being defined. Considering full spectum CBD oil, basic products can be found for as little as 1400 €/litre, and even more than 2000 €/litre for oil without gas or solvent extraction and rich in terpenes.
Other CBD products on the market are distributed by wholesalers, such as pure crystals used in the industry for processing other products. With great potential in the market and authorised by the Court of Justice of the European Union in November 2020, allowing CBD products to be sold freely in all EU countries.
The CBD oil segment is estimated to be worth over 450 million dollars in 2020, the oil segment in the market can be defined as almost stable in some respects, indicating a stable demand in all countries of Europe. All other products are relatively newer and differ in the type of administration, such as capsules, gums, sprays or others, which will certainly be a viable alternative to the classic sublingual drops in the very near future.