Even though THC and CBD flowers have a lot of similarities especially when it comes to the cultivating of hemp plants and processing methods, THC still has a significant price difference than CBD products. THC products are generally more expensive than CBD products, which led to the question why is it so expensive? In this article, we will attempt to answer that question. If you want more articles like this, please visit ecowatch. Without further ado, let’s start:
- THC is just more popular than CBD
Customers are already utilizing THC for a variety of reasons for hundreds of years, whilst CBD is only starting to get recognition for the past 10 years or so. Put simply, the demands for cannabis flower with THC is greater than flowers with CBD. In addition, legitimate marijuana markets have extended the customer base for the majority of their products partly because of the Covid 19 pandemic. Having said that, the biggest contributor to the growing number of customers is the customers that are switching over from the black market to the legal market, especially with the legalization of marijuana in many states and countries. As basic economic laws put it, higher demands are equal to higher prices.
- THC classification
Because tetrahydrocannabinol or THC is still an illegal substance in the United States with a classification of Schedule I controlled substance, its supplies are generally restricted to license limitations. Its production is very strict too, with limitations based on individual companies. Most states have tried to limit the production of THC in order to prevent a substantial excessive generation of this controlled substance. On the other hand, restrictions on hemp are more relaxed since it is legal generally speaking.
The 2018 Farm Bill or the Agriculture Improvement Act of 2018 has made the cultivation of hemp lawful, although there are still a number of limitations and conditions. CBD was also removed from the list of controlled substances of the Drug Enforcement Agency (DEA). Because of this, hemp is usually manufactured in each state in which a hemp manufacturing system has been set up, which is the case for almost every state in the U.S.
With these discrepancies, we can somewhat see why THC is more expensive than CBD, and by a large margin. There is simply a larger supply of CBD on the market, which makes its price low. THC on the other hand is more limited, which is the reason why it is more expensive as stated earlier in this article.
- Production costs
Legitimate cannabis firms and businesses are governed by considerably stricter regulations, which includes safety measures, stringent requirements, monitoring from the cultivation, harvesting, processing, and consumption of products, and garbage disposal rules. Additionally, the licensing costs for legal cannabis businesses are considerably more expensive, costing a lot more than normal licensing fees. This is one of the most prominent reasons why there is a price difference between THC and CBD prices.