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how much does cbd distillate cost

What is CBD Distillate? Wholesale Pricing, Regulations & More

As more states legalize recreational and medicinal cannabis across the country, a wider array of products extracted from hemp plants will become available. Needless to say, these changes mean that retailers and consumers alike need accurate and up-to-date information related to pricing, legal status, and product differentiation.

One area in which legislators have failed to provide much information is CBD distillate. Many people have heard of CBD, and know that it is derived from cannabis. Beyond that, CBD is relatively new territory for the average consumer.

So what is CBD distillate? What’s the difference between CBD distillate and CBD isolate? How are these products regulated? And where can retailers purchase CBD distillates at wholesale prices? We will cover all of this and more in the following sections, but first let’s take a look at the basics of CBD distillation.

What is CBD?

CBD (cannabidiol) is one of more than 100 cannabinoids found in the cannabis plant. CBD is often used to reduce pain and and manage anxiety, though its effects do not stop there. Researchers are actively studying the psychoactive effects of CBD to determine how best to regulate and administer CBD as a therapeutic drug.

Currently, manufacturers market CBD in various forms, including CBD oils, topicals, pills, and similar products. However, some products merely contain CBD along with many other cannabinoids, while other products are comprised entirely (or almost entirely) of cannabidiol.

What is CBD Distillate?

When CBD is extracted from hemp flowers in a highly-purified and refined form, this is known as CBD distillate. Generally, CBD distillate contains trace amounts of other cannabinoids, including THC (usually less than 0.3%), though it is comprised of about 90% CBD. This process ensures that CBD can be processed and sold in states where THC-infused products are not yet legal.

How is CBD Distillate Made?

CBD distillation requires several steps; first, the “raw” oil is extracted from the cannabis plant via a PX1 or PXP system. The end result of this initial extraction is a blend of cannabinoids and terpenes. This blend must then undergo the distillation process, which allows the CBD to be isolated and purified to 90% or more.

This may sound simple enough, but CBD distillation is actually a pretty complex process. In order to isolate and purify CBD, the solution must be heated to the point that a specific compound (CBD in this case) is vaporized, but not completely eliminated from the solution. Once the CBD is in a vaporized state, it can be turned back into a purified liquid. This process creates a solution that expels virtually all of the unwanted compounds, leaving behind a highly-refined form of the desired compound.

The process of CBD distillation is vital to manufacturers, retailers, and consumers, because it takes cannabis plants and low-grade biomass that have unpredictable quantities of different cannabinoids, and transforms them into standardized products with predictable and refined quantities of CBD, THC, or other compounds. The resulting distillate can then be infused into numerous products for consumers, making it a cornerstone of the CBD industry.

Is CBD Distillate Regulated?

In short, no. The use of CBD distillate has not received official FDA approval. However, CBD was removed from the controlled substances list in 2018, making it legal to produce and/or distribute nationwide. That said, THC is still a controlled substance, and is not yet legal in many states. Therefore, CBD distillate producers must ensure that their products do not contain more than trace amounts of THC, especially if they wish to distribute their CBD products in states where recreational and/or medicinal cannabis is not legal. As a result, CBD products must adhere to certain regulations to ensure that they are actually infused with CBD distillate, rather than THC or other cannabinoids.

How Much Does Wholesale CBD Distillate Cost?

While prices vary by vendor and location, there is one place where you can compare prices and shop for CBD distillate wholesale: Kush.com. At Kush.com, you can find the latest industry pricing data, as we update the average offer price, average listing price, and average offer accepted price on a monthly basis. We also use this data to make accurate forecasts about future prices, as well as predictions regarding material and product availability by region. To learn more about how we collect and analyze our data, check out this link.

The average offer accepted price for wholesale CBD Distillate in August 2019 is $4,301.77 per kg.

Since wholesale pricing can change from one month to the next, you will need to consult Kush.com for the most up-to-date prices. The chart above illustrates the current CBD distillate price per kilo, though this price will inevitably change going forward. This is why we are constantly collecting data and analyzing current pricing models across the broader market.

That said, there are a variety of factors that can affect CBD distillate wholesale prices, including, but not limited to, the following:

  • Location
  • Specific vendor
  • Larger market trends
  • Product shortage/surplus
  • Type of Product (full spectrum CBD, broad spectrum CBD, Isolate, etc.)

Differentiating CBD Distillate Products

As with most kinds of cannabis-derived materials, CBD distillate can come in different forms and can be infused in many different products. So, in order to better understand CBD distillate and how it can be used, there are a few important terms you should know: Broad Spectrum, Full Spectrum, and CBD Isolate.

Broad Spectrum CBD vs. Full Spectrum CBD vs. CBD Isolate

These three terms refer to different methods of CBD extraction. Broad spectrum CBD is simply a different name for CBD distillate. In other words, when a cannabinoid oil is the result of “broad spectrum” distillation, it removes one or more cannabinoids from the solution, leaving behind a refined version of the desired compound. As stated previously, this generally results in CBD solutions of 90% or more, with trace amounts of other cannabinoids.

Alternatively, full spectrum CBD generally refers to oils or other solutions that have been extracted from the hemp plant, but have not been distilled. As a result, full spectrum solutions contain the quantities of CBD, THC, and other cannabinoids that naturally occur in the hemp plant. Therefore, full spectrum CBD is not “pure” CBD, as no other compounds are removed to refine the end product. Full spectrum products are only legal to produce and sell in those states where cannabis is legal for recreational and/or medicinal use, like Colorado. This is due to the fact that full spectrum products can contain large amounts of THC.

Finally, CBD isolate refers to CBD in its purest form. CBD isolate comes in the form of a powder, and does not contain any other cannabinoids beyond cannabidiol. Naturally, CBD isolate must go through a more complex distillation process to ensure that the resulting solution only contains CBD.

Bulk CBD powder (CBD isolate), as well as CBD distillate and full spectrum CBD can be purchased through various retailers at wholesale prices. However, you may be wondering where you can source reliable, trustworthy vendors in such a tumultuous industry. So, let’s take a look at the best place to go to buy (or sell) CBD distillate and other CBD products.

Where Can I Buy Wholesale CBD Distillate?

Shopping in a marketplace that is relatively new and dependent on ever-changing legislation can be intimidating. After all, if you’re in the market to buy CBD products, you won’t want to choose a vendor that has not been properly vetted. You could end up losing a lot of money if you’re not careful. Similarly, if you want to sell CBD products, you will need to have access to a large network of interested wholesale buyers.

When CBD (cannabidiol) is extracted from hemp flowers in a highly-purified and refined form, this is known as CBD distillate.

CBD Spot Prices – Feb 2019

The CBD market is a constantly evolving, on a weekly basis. In this article we examine current spot prices of CBD for Hemp biomass, crude, distillate and isolate, and what factors are influencing price. Our goal is to create an index of prices so that you can price your products to sell on the marketplace, or via your sales channels. In the past 2 months, we have witnessed federal legalization, shipments of hemp being seized in the face of legal interstate commerce, and the FDA cracking down on CBD additives to food. There are many factors to consider when looking at CBD prices, below we analyze the must knows.

Hemp Biomass – Extraction

Average price / lb: $3.50 – $4.25/%

Prediction of price movement: $5.50 – $6.25/%

Driving Factors: Processors are scaling up and extracting more biomass than ever before. With investments pouring into hemp infrastructure, especially on the east coast where there is a small supply. This is putting a squeeze on the available biomass, and we see regions with surpluses like Oregon, supplying regions like Tennessee. The market has consolidated around $4.00 / %, but there is upward price pressure due to lack of supply in 2019. Patient farmers can expect to receive a 30%-50% premium if they can wait until the impending drought of material this summer. There are costs involved with waiting such as storage, material degradation, and the time value of money. -Michel Navedo

Hemp Biomass – Smokeable

Average price / lb: $150 – $350

Prediction of price movement: to $300 – $1200

Driving Factors: Hemp buds being sold as smokeable hemp flower are supplying much of the midwest, south and east where legal Marijuana has yet to thrive. Flower quality hemp, although a small market when compared with Marijuana, is providing great prices for high quality trimmed buds. Current supply in the market is outdoor flower, and a few indoor lots. We expect the prices to rise as the supply of high quality outdoor flower dwindles. There is also a developing super premium sector of the smokable flower market as indoor hemp growers develop high quality genetics. -Michel Navedo

Crude

Average price Ethanol CBD Crude: $2000-$2500 / kilo

Average price CO2 CBD Crude: $3000

Prediction of price movement: Pricing will stay steady and increase late season

Driving Factors: Prices for crude are being driven by three factors, craft extractors, industrial extractors and supply of biomass. Extractors who are producing under 100 kilos / month fulfill small orders in the market for a niche clientele base. The pricing for this material is high due to the buying habits of smaller buyers – and the scale of extraction. When buying a kilo of material per month, the price climbs to $2750 – $3250 / kilo for material. Industrial extractors focus on large recurring orders and do not fulfill smaller orders. The volume of orders, and economy of scale drop the price of these orders to $1900 – $2300 / kilo. We expect the outliers (high prices) in this supply chain to consolidate towards an average price as the industry continues to consolidate. We will also see a trend of more processors using crude to create other CBD derivatives as the biomass market dries up, resulting in a 10%-15% price spike late season. -Jesse Hagberg

Distillate

Average price: $5000-7000 / kilo

Prediction of price movement: Prices will hold around 6k / kilo for the rest of the year

Driving Factors: Prices for full spectrum have been falling as cautious buyers are moving towards zero THC products due to the presence of THC and legalities surrounding transportation. Also, the need to dilute distillate to be compliant to ship has limited the market who can purchase because many companies lack the necessary equipment to rotovap out a dillutant. Despite an increase in the overall quality of distillate from extractors, the demand has stagnated because people are moving towards a safer products to purchase, such as zero THC distillate.

Zero T Distillate

Average Price: $10,000 / kilo

Prediction of price movement: Price will dip to 8.5k as processors scale their THC remediation process

Driving Factors: Labs are scaling up their operations to produce zero THC distillate as a result of market demand for a CBD product that contains a broad spectrum of cannabinoids and no THC. This is a tricky process to master, and we have seen many failed batches of zero THC distillate where the material tests hot. As these operations perfect their extraction SOPs, the supply for zero T will improve and the prices will drop.

CBD Isolate

Average price / kilo: $7000

Prediction of price movement: Pricing are dropping to the mid $6000’s before rising to $7-$8 /gram before harvest.

If you’re reading this article you should know that the information in here is dated. Isolate prices have undergone a massive price crash since the publication of these stats. Take a look at the listing below for an updated example of current isolate prices from one of our top vendors:

Driving Factors: Farmers are the biggest driver for the drop in Isolate prices. Many farmers are still receiving splits on their lots, meaning they receive a percentage of the isolate output from a processor when they extract their hemp biomass lot. This isolate is a one time purchase on a limited supply, and these spot buys are constantly hitting the market. The problem is that many farmers lack an established customer base for isolate, which results in a lower price due to lack of sales channels. These deals are available on the market, and CBD brokers are excited to help make the deals happen. This is driving prices down because the brokers are impacting the perception of the current average market rate. To be clear, isolate derived from splits are spot prices, and the supply is very volatile and not indicative of larger pricing trends. If you have a stable and growing business that uses CBD isolate, we recommend paying a premium for isolate from a consistent supply chain. The larger processors are aware of the need for a stable supply, which is why they are holding their prices steady.

If you’re reading this article you should know that the information in here is dated. Isolate prices have undergone a massive price crash since the publication of these stats. Take a look at the listing below for an updated example of current isolate prices from one of our top vendors:

Driving Factors: Farmers are the biggest driver for the drop in Isolate prices. Many farmers are still receiving splits on their lots, meaning they receive a percentage of the isolate output from a processor when they extract their hemp biomass lot. This isolate is a one time purchase on a limited supply, and these spot buys are constantly hitting the market. The problem is that many farmers lack an established customer base for isolate, which results in a lower price due to lack of sales channels. These deals are available on the market, and CBD brokers are excited to help make the deals happen. This is driving prices down because the brokers are impacting the perception of the current average market rate. To be clear, isolate derived from splits are spot prices, and the supply is very volatile and not indicative of larger pricing trends. If you have a stable and growing business that uses CBD isolate, we recommend paying a premium for isolate from a consistent supply chain. The larger processors are aware of the need for a stable supply, which is why they are holding their prices steady.

If you’re reading this article you should know that the information in here is dated. Isolate prices have undergone a massive price crash since the publication of these stats. Take a look at the listing below for an updated example of current isolate prices from one of our top vendors:

CBD Spot Prices – Feb 2019 The CBD market is a constantly evolving, on a weekly basis. In this article we examine current spot prices of CBD for Hemp biomass, crude, distillate and isolate, and ]]>