Is Bulk CBD Isolate Demand Outpacing Supply?
October 28, 2018

Bulk CBD Isolate Pricing

Definitions and Pricing Ranges

Typically when you are discussing wholesale prices for bulk CBD isolate you are referring to prices that are low enough so that the product can be resold at a retail price with an agreeable profit margin.  Often though, companies are searching for their own uses in products like pain creams, CBD oils, and beverages but are buying a high enough quantity to warrant a wholesale price.

Bulk prices for CBD isolate can often be used synonymously with wholesale prices – it comes down to quantity and by whose definition.  What quantity is considered a bulk purchase or wholesale pricing?

For many CBD isolate manufacturers or labs, their minimum purchase order may be 1kg and as high as 500kg so there is a wide variance of what may be considered bulk.  For our purposes we are considering any purchase amounts between 1kg and 500kg a bulk purchase because at this level of purchase, the buyer is typically buying to re-sell the product or use the isolate in formulas to create their own products for resale.  Purchases under 1 kilogram are typically made by end users who will be using the product for their own personal use (anxiety and pain are the most common uses).

Some labs require recurring orders (typically monthly) in order to qualify for a wholesale or bulk order pricing.

What Are the Current Bulk CBD Isolate Prices?

Because each manufacturer naturally sets their own price, prices vary considerably from one isolate lab to the next.  The prices tend to follow the supply and demand of each manufacturer and thus are changing on a daily basis.  At the time of this writing, November 2018, here are some examples of bulk/wholesale pricing from actual manufacturers:

Lab A – Denver

5kg – $5700
10kg – $5500
100kg – $5300
500kg – $5000

Lab B – Kentucky

5kg – $7000
10kg – $6800
100kg – $6500
500kg – $6000

Because prices change daily with bulk isolate suppliers it can be counterproductive to post pricing for wholesale orders.  That is why most providers have you request a pricing quote at the time you are ready to order so that the pricing is accurate.  For NewVista Hemp’s bulk isolate you can get a current price quote by telling us what you need in this quick and easy form.

Can we extrapolate from Lab A and Lab B that pricing from Eastern U.S. labs is higher than Western labs?  It’s clearly too small a sample to say for sure.  The amount of isolate labs in the west far outweighs those in the east.  The demand in each part of the country is unique and therefore pricing in different regions can be effected by local demand.

To what extent do companies shop on a national basis vs. a regional or local basis for bulk isolate?  The answer to that requires a bit more research and will likely give us more insight into how pricing is affected by local vs. national procurement.

To learn more about the supply and demand of bulk CBD isolate and how it affects wholesale pricing, see our in depth article.

 

 

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