“Our mission is to create transparency for consumers,” notes Dr. Robert Portman, CEO of CBD Validator. “Our initial report discovered wide price gaps among similar CBD products, and now it seems that even more products are continuing this pricing inconsistency.”
SAN FRANCISCO (PRWEB) September 11, 2020
CBD Validator, an independent industry resource that owns the largest database of rated CBD oil products on the market today, shares its latest report, Large Pricing Variation Between Equivalent CBD Products Fuels Consumer Confusion. This report analyzes more than 2,000 CBD oils, a 39% increase in product coverage from the first retail pricing report published earlier this year, with both reports concluding the continued wide price differences among similar CBD products, creating more consumer mistrust and confusion within this rapidly growing industry.
“Our mission is to create transparency for consumers, and the research and data we have focuses on one of the most significant factors that impacts the CBD industry,” notes Dr. Robert Portman, CEO of CBD Validator. “Our initial report discovered huge price gaps among similar products, and now with this second report, it seems that even more products are continuing the inconsistency.”
The CBD industry has been rapidly evolving, and given the unfortunate widespread impact of the COVID pandemic, there have been significant economic and lifestyle changes everywhere, as people seek alternative ways to cope and adapt to this “new normal.” According to a report from the Brightfield Group, “… the US CBD market is projected to reach $4.7 billion in sales, with 14% growth from 2019 sales of $4.1 billion. With Americans facing high unemployment levels (11.1 % in June compared to 3.8% in February of this year), 2020’s retail sales are not expected to reach levels anticipated prior due to the emergence of the COVID-19 pandemic.” But, despite key challenges including “…economic pressures faced by consumers, temporary store closures, inaction by the US FDA (Food and Drug Administration) constraining growth of the US CBD market, it estimates the total US CBD market still could reach $16.8 billion by 2025.”
CBD Validator’s pricing research and data continues to find great disparities across equivalent CBD products, specifically in the CBD oils and tinctures category:
KEY DATA POINTS
- The average cost per milligram of CBD across all products in the CBD Validator database is $0.18, a 2% decline from the average reported seven months prior (Feb 2020), which most likely reflects a drop in the price of hemp due to oversupply.
- The seven most popular strengths of CBD oils and tinctures are 250 mg, 300 mg, 500 mg, 600 mg, 750 mg, 1000 mg and 1500 mg.
- The 500 mg and 1000 mg strengths of CBD sold in a one-ounce bottle account for almost 30% of all products reported in the CBD Validator database.
- An example of pricing disparity is illustrated in analyzing the 1000 mg strength. The average MSRP for the 1000 mg strength is $93.20, but the range is quite significant -- $30 for the least expensive and $214.99 for the most expensive, or a seven-fold difference. In fact, across all strengths there is on average, a six-fold difference between the most and least expensive product.
Pricing disparities create consumer confusion and will continue to serve as an obstacle to the growth and mainstream use of CBD. More importantly, there appears to be no relationship between premium pricing and quality manufacturing. Only 19% of the 1000 mg strength CBD oils in the CBD Validator database provide consumers with a Certificate of Analysis (CoA) for CBD (a document issued by an independent testing laboratory to assure a product meets specification), pesticides and heavy metals from an independent testing laboratory.
About CBD Advanced Science and CBD Validator
CBD Advanced Science was established to provide consumers with a much-needed resource to help make informed decisions when purchasing CBD products. The company is committed to providing consumers with unbiased information about the growing number of CBD products marketed today, with its CBD Validator digital tool. CBD Validator is the first comprehensive and easy-to-use digital tool that allows consumers to evaluate and compare 2000+ CBD oils and tinctures. Each product receives a CBD Validator Score based on how it meets the key criteria outlined in the proprietary 50-point rating system. As an aggregator of product information, CBD Validator does not assess the validity of claims made by a manufacturer.
CBD Validator is a completely independent resource, not sponsored by any manufacturer of CBD products, and does not accept advertising or receive sales commissions from any manufacturers or marketers of CBD products.