CBD Prices are Headed Down
Amid the coronavirus pandemic, the world is constantly changing. With global pandemics come some economic uncertainty. Like most industries, the CBD industry is feeling the economic impact of COVID-19. The industry has begun to pivot their products to those who are struggling economically.
CBD at a Better Price
How drastic are the CBD prices falling? It is a near free-fall. The average price of CBD has dropped by nearly 80 percent from April of last year to April of 2020. CBD prices have decreased from $38 a pound to $8.10 per pound according to a pricing and tracking agency called Hemp Benchmarks.
Even though the coronavirus pandemic has made a huge impact on the pricing of CBD, it isn’t the sole factor. The industry as a whole has become more efficient when it comes to product extraction and manufacturing facilities.
Ready For The Worst-Case Scenario
Unlike other industries, the organic CBD industry was ready for such an economic shift. In fact, before the pandemic swept the nation, leaders of the industry had already made it a goal to lower prices on their product.
In an effort to make their products more accessible, CBD companies have entered new sales channels. More companies are shifting from online-only to also being available through retail. This means that CBD capsules and all-natural CBD creams will be more of a familiar sight at convenience stores.
Survival of The Fittest?
With products being sold at a lower cost also comes along thinner margins. Major companies will be working with a thin margin which would mean some bankruptcies could be expected. However, the bright side of all of this could mean that the amount of CBD consumers could grow.
Questions remain whether or not the all-natural CBD industry as a whole will grow.