Innovating CBD from seed to sale means big profits for you…
A bottle of CBD oil from Charlotte’s Web Holdings Inc. (OTC: CWBHF), arguably the most popular CBD brand in the United States, can set you back anywhere from $30 to $120.
That bottle might last you a month, maybe two.
The quality is unmatched, but it’s not exactly cheap. And the cost is so high because, all told, extracting pure CBD from hemp can cost up to $7,000 per kilogram of CBD.
But here’s the thing: the CBD industry isn’t going anywhere.
In fact, consumer demand for CBD is so high that sales are expected to increase by a remarkable 3,622% by 2022. (Find out how you can cash in on the unstoppable CBD market right here.)
Just imagine the sales boost for companies that can find a way to bring down the price of CBD to make it even more accessible to the everyday consumer.
Well, not only is that possible – it’s already happening.
The Cost of CBD From Seed to Sale
To understand where the profit opportunities lie, it’s important to know how CBD gets from the hemp plant to that $120 bottle – and where the biggest costs come into play.
The CBD life cycle starts with cultivators. Hemp farming requires land to grow crops. Lots of it. Then there are the seeds, the equipment, the labor, and the licenses.
Remember that with such a fine line between marijuana and hemp – 0.3% THC or less, and you have hemp; more THC, and you have marijuana – an entire hemp crop could end up in the landfill should it fail to stay below that 0.3% line.
Harvesting the mature hemp crops is next, and once harvested, it’s time to extract the actual CBD out of the plant. This is typically done using an industry-standard CO2 extraction method. Those machines can run into the hundreds of thousands of dollars. And let’s not forget the cost of the buildings those machines are housed in or the additional labor involved.
At this point in the process, the extracted CBD still needs to be decarboxylated in yet another machine, and only then will it become full-spectrum CBD oil – still needing to be packaged.
Full-spectrum CBD can contain up to 0.3% THC, so if you want pure CBD, there is yet another process still to be done to purify the CBD: winterization.
Before it reaches shelves, you have to test the final product. And throughout this whole process, you have to account for the cost of things like branding, packaging, and distribution.
So, you can see how it can easily cost up to $7,000 to produce one kilogram of pure CBD.
Of course, with so much money still to be made in this lucrative industry, innovators at every level of the supply chain are working to lower that cost to maximize profits.
And the most forward-looking innovators aren’t just working to unlock the full profit potential of CBD…
The cannabis plant naturally produces CBD and THC in large quantities, but those are just two of over 100 other cannabinoids that the cannabis plant produces. These other cannabinoids are much rarer and therefore much more costly to extract.
If you thought CBD was expensive to produce at approximately $196 per ounce, compare that to the $2.1 million per ounce it can cost to extract the same amount of one single rare cannabinoid.
That’s about 1,200 times more valuable than gold.
And with each of these other compounds having their own unique properties – many of which have already demonstrated their own therapeutic benefits – there’s a massive opportunity here.
Cannabinol (CBN), for example, has been found to have a sedative effect. Should it prove to be a viable sleep aid, that would mean big bucks for the company that figures out a way to extract CBN for a reasonable price.
So, how are innovators tapping into this untapped profit potential? Through a promising process called biosynthesis.
And get ready, because Executive Director Don Yocham and Advisory Board member Danny Brody have discovered an incredible opportunity in this space that they can’t wait to tell you more about.
August 05 2020