(Newswire.net — August 31, 2020) — Like in many other industries, there have been some changes in the CBD industry because of recent legislation. The effects of this legislation have been far more widespread than initially thought. One unforeseen consequence has been the proliferation of a new price war between different manufacturers of CBD containing products. How low will prices go in the future, and is this all for the customer’s benefit?
Recent Changes in the CBD Industry
Two years ago, a piece of agricultural legislation called the 2018 farm bill was passed that allowed the legalization of the CBD industry for all products containing lower than 0.3% THC by weight.
Since then, it has been possible for you to go into regular stores like the corner gas station and pick up products that contain CBD. Consumers across the country have quickly adopted this newly available beneficial compound for its purported health benefits.
Wider Variety of Products
One thing that consumers have loved lately is the wide variety of new products recently made available after the passage of this crucial legislation such as CBD arthritis Cream or even tinctures that you can infuse with your meals. There is a wider variety of available products containing CBD today than there have ever been in the past. There is something for everyone in the industry now.
Easier Time for Firm to Enter Industry
While growing hemp was not necessarily impossible to do legally before the passage of the most recent legislation, it was far more difficult. The newest legislation has opened up the industry to many more potential contributors interested in making a name for themselves. They can do this by offering the best prices for the highest quality products available.
Competition Between Producers Leads to Lower Prices
As new producers are entering the market, they need to differentiate themselves from the traditional competitors that have already been established.
The easiest way for them to do this is to offer a similarly high-quality product at a lower price. Brick and mortar retail stores have reduced their prices by up to 30%, because of the competition between different producers.
This competition’s effects are typically beneficial for the consumer because it lowers the finals’ prices they have purchased.
However, it is a crucial thing to keep an eye on because if competition becomes too fierce, it is possible that a monopoly situation could develop as new producers are entering the market they need to differentiate themselves from the traditional competitors that have already been established.
The easiest way for them to do this is to offer a similarly high-quality product at a lower price. This competition’s effects are typically beneficial for the consumer because it lowers the prices of the final goods they have purchased.
Final Notes About the CBD Price Wars
All industries experience growing pains as they become more established in the modern economy. CBD has been used for thousands of years, but it has been illegal for most modern history. Now science shows us many benefits of its use and the new legalization efforts have made serious progress. Hopefully, prices will continue to drop for a long time.