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11. November 2020
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Market Data Snapshot: U.S. CBD Retail Price Analysis 2020

CBD Industry watchdog the recently undertook an analysis of CBD brands in the U.S. to determine price trends over the course of 2020. Among the key findings the data suggests that 70% of CBD brands reduced their prices in 2020.

Market Data Snapshot - U.S. CBD Retail Price Analysis 2020

Data source –

Additional findings included:

  • CBD prices decreased by 17%, in 2020, compared to last year.
  • Pet edibles are the exception, with a 44% increase in prices
  • The cheapest product family is isolates, which differs from the most expensive product family (pet edibles) by 87.5%.
  • The difference between the cheapest and most expensive brands can be as much as 5222%
  • The most significant differences in price can be found on topical products


Retail CBD prices tracking wholesale depreciation

The data suggests that the depreciation of prices that we have seen across all wholesale hemp and CBD raw materials is now starting to filter down the supply chain. Where manufacturers had previously been able to sustain premium prices for particular products, or brands, the sheer volume of new market entrants, that we have witnessed over the past couple of years, is now resulting in fierce competition for market share.

CBD consumers to benefit

For consumers this price erosion is a positive step and presents an opportunity to broaden the appeal of CBD products to new market segments.

As we start to see more CBD products across the full price spectrum the consumer base, as a whole, is likely to continue on the upward trajectory we have seen over recent years. More products and brands combined with a greater range of price points will see new opportunity for both manufacturers and retailers alike.

Reduced margins

Price reductions also mean reduced margins up and down the CBD supply chain, which will have profound impacts on some parts of the industry. As manufacturers and retailers address the increased competition, marketing and branding budgets are also going to increase as brands attempt to differentiate themselves within an increasingly crowded marketplace.

CBD market is ripe for consolidation

While it is unlikely that CBD products will see a rapid race to the bottom, in terms of prices, the need for differentiation is becoming increasingly apparent.

Brands need to identify their specific niche and aggressively target those consumers. This means that customer experience, brand identity, quality and authenticity are becoming critical elements of success.

With so many manufacturers and retail opportunities it is reasonable to expect some significant consolidation across the industry in the coming year. Well-funded brands looking to leverage scale in order to maintain margins and market share are likely to perform well in this more competitive landscape.

Author: Matthew Driver, Senior Analyst

Market Analysis | Insight & Trends